DigitalX Weekly Crypto Update: Market Trends and Analysis

Market Commentary

This week has been marked by significant geopolitical tensions impacting both digital assets and traditional markets. Reports of an Iranian drone attack on Israel led to a sharp sell-off in digital assets and broader risk assets as investors sought refuge amid fears of a growing conflict. With Israel poised to respond and calls for restraint from the Biden administration, uncertainty looms over the region, prompting questions about potential market implications.

Meanwhile, developments in the regulatory landscape continue to shape the digital asset space. In Hong Kong, approval for spot Bitcoin and Ethereum ETFs could potentially open up a significant market, although analysts remain cautious about the level of investment they might attract. Additionally, the SEC’s scrutiny of Uniswap and discussions surrounding stablecoin legislation underscore the ongoing regulatory challenges facing the industry. Technical updates have also been prominent, with bug fixes being implemented to resolve the recent congestion on Solana’s network.

Adding to the mix is the highly anticipated Bitcoin halving event, set to occur this week on the 21st of April. This event, which causes a reduction in the supply of new Bitcoin by reducing block rewards from 6.25 to 3.125 Bitcoin mined every 10 minutes, has historically had significant implications for the market. As anticipation builds, investors are evaluating the potential impact on prices and mining dynamics, preparing for potential market shifts post the halving.

CEO Comment

The Gap between Bitcoin and the S&P 500 has further spread to 17%, a slight increase from last week’s 13%.

As for the shift list, which we define as the major events and announcements facilitating the broader market’s transition to Web3 financial rails or the internet of value, the top shifts for this week include:

1. Our research paper here highlights the benefits of a simple portfolio allocation to digital assets. This is really the big shift – every investor in the world with at least a small allocation. 
2. We have a thesis that Web3 financial rails, underpinned by all of the development in the digital asset sector, is a generational shift. The below article paints a clear picture about the future of investing amongst the younger generations – Generation Z and millennials choose crypto over stocks – Report.

Our Top “alts shifts” for this week, featuring shifts in our altcoin universe that drive our thematic approach, saw the second gap, or the broader digital asset market, remain flat at circa 47%. I want to highlight that this is a big opportunity, as mentioned we see this as a selective opportunity to identify and grow our alternatives portfolio via our “alThematics” work. The gaps themselves are proving to be a risk on, risk off proxy and hugely high Beta – volatility is a certainty and an opportunity – the building is happening no matter what.

1. The transfer of all finance and financial transactions via the tokenisation of real world assets is a key alt thematic for us – this “mainstreaming” on the base platform at scale is what is needed, so we like this move – Tokenised credit platform Centrifuge plans institutional RWA lending on Base, raises $15M in VC investment.

What are our favourite thematics for 2024? We continue to like any infrastructure plays of the shift from Web2 to Web3 financial rails and any plays in the real-world asset tokenisation infrastructure, data validation and decentralised storage, as well as scale-up technologies such as ZKrollups. We are closely following all the ”de’s” – DeFi, DePin, DeSoc – (want to know what that means? – message us). 

Lisa Wade, CEO DigitalX

 

CRYPTO TOP 20 7 DAY PRICE CHANGE

*All figures throughout are in USD unless otherwise specified

 

Market Updates

• BlackRock’s spot bitcoin ETF crosses $15 billion in total inflows
• Crypto prices rebound from selloff as Bitcoin dominance hits three-year high
• A16z raises $7.2B
• Korean becomes world’s most traded fiat for crypto traders: Report
• Generation Z and millennials choose crypto over stocks – Report
• Coinbase and Grayscale unveil new TV spots in time for bitcoin halving
• Grayscale’s GBTC reaches its own halving, down 50% in bitcoin holdings since spot ETFs launch
• UFC Star ‘Money’ Moicano urges fans to study Mises, Bitcoin
• TON Foundation partners with Hashkey to enhance fiat access for Telegram wallet users
• EigenLayer introduces six actively validated services including restaked rollups and Ethereum-native oracle
• Uniswap Labs hikes swap fee to .25% from .15% on trades through interface
• Ethereum’s Pectra upgrade to bring smart contract functionality to wallets as experts debate EIP-3074
• Layer 1 blockchain developer Berachain raises $100 million in Series B funding
• Ether.Fi inks $500M staking deal with RedStone oracles
• Thai crypto exchange Bitkub may be valued as high as $3B in IPO: CEO
• Chainlink aims to make transfers across blockchains safer with new bridge app ‘Transporter’
• Winklevoss twins become co-owners of Bitcoin soccer club, inject $4.5M of BTC
• VeChain announces tokenised gloves in partnership with UFC – community responds
• GBTC fees will drop when Bitcoin ETFs ‘start to mature’ – Grayscale CEO
• El Salvador’s newest Hilton hotel to tap into tokenised debt on Bitcoin
• Crypto exchange OKX’s Polygon-powered Layer 2, ‘X Layer,’ hits public mainnet
• Animoca Brands has $558 million in digital assets according to unaudited disclosure
• Crypto exchange VALR obtains South African license
• Gold-backed PAXG token spikes to $2.9K amid geopolitical tensions
• Offchain Labs releases Abitrum BOLD on testnet
• BIS envisions global ‘Finternet’ running on unified ledger technology
• Blockchain for Good Alliance launches at Blockchain Life Dubai
• Meta announces VR education metaverse for ages 13 and up
• Samsung secures $6.4B grant to expand Texas chip manufacturing: Report
• Max Boonen’s PV01 tokenises $5M treasury bill, plans to look at corporate bonds
• PayPal removes buyer and seller protections for NFTs
• Ethereum liquid restaking protocol Puffer Finance reaches $200 million valuation in new token funding round
• Avalanche home loan tokenisation protocol raises $10M in Series A
• Tokenised credit platform Centrifuge plans institutional RWA lending on Base, raises $15M in VC investment
• QCP Capital and Further Ventures announce partnership for Middle East crypto expansion
• Worldcoin, Sam Altman’s crypto project, is building a Layer-2 chain
• Kraken releases own crypto wallet, joining competition with Coinbase, Metamask
• Zignaly announces Cosmos-based ZIGChain, $100M ecosystem fund
• Citadel-backed Hidden Road Partners on track to raise $120 million: Bloomberg
• Paradigm’s Head of Security leads launch of SEAL-ISAC, a crypto threat intel-sharing platform
• Abra unveils new platforms for private and institutional clients
• Tokenisation platform Huma Finance merges with Circle-backed liquidity platform Arf

The Shift List

• Hong Kong approves first batch of spot Bitcoin, Ether ETFs in drive to become crypto hub
• TradFi firms now prefer public blockchains: ex-Grayscale exec
• BlackRock could open the door to US-regulated stablecoins
• Germany’s largest federal bank LBBW to offer crypto custody services with Bitpanda
• Adidas partners with crypto fitness app STEPN, both NFTs and merch coming
• Franklin Templeton says Runes will boost Bitcoin’s position in the fungible token market
• UK trade association experiments with Regulated Liability Network
• Former NY Fed chief joins Binance.US board

Macro and Regulatory Environment

• Chalmers warns of more volatility as Powell delays interest rate cuts
• Coinbase files interlocutory appeal in its case against the SEC
• Australian court hands over $41 million of crypto held by blockchain mining group at regulator’s request
• Top U.S. House lawmakers meet on stablecoin bill strategy: Punchbowl
• IRS investigation chief expects uptick in crypto tax evasion this year
• Binance executive tracked to Kenya, extradition underway
• U.S. gov’t among states with largest Bitcoin holdings – Arkham
• Australians wouldn’t value retail CBDC for its privacy or safety, RBA finds
• Elizabeth Warren demands U.S. CFTC Chair explain his chats with SBF
• Norway wants to restrict crypto mining by regulating data centers, lawmakers say: Report
• UK to issue new crypto, stablecoin legislation by July, Minister says
• Filecoin Foundation launches Chinese legal inquiry into STIFL incident
• Fiji central bank warns against crypto use, disappointing Bitcoin hopes

About DigitalX

DigitalX Ltd (ASX:DCC) is a leading ASX-Listed Bitcoin and digital asset funds management business. The Company has a 9 year track record mining Bitcoin, blockchain and smart contract development. DigitalX Asset Management is the investment manager of digital asset investment products that provide qualified investors with highly secure and streamlined access to digital asset exposure. To learn more contact the team at [email protected] or visit our website https://digitalx.fund/.

Disclaimer:

DigitalX Asset Management Pty Ltd is a corporate authorised representative (CAR) of Boutique Capital Pty Ltd (AFSL 508011), and True Oak Investments Ltd (AFSL 238184). To the extent to which this document contains advice it is general advice only and has been prepared by the CAR for individuals identified as wholesale investors for the purposes of providing a financial product or financial service. The information herein is presented in summary form and is therefore subject to qualification and further explanation. The information in this document is not intended to be relied upon as advice to investors or potential investors and has been prepared without taking into account personal investment objectives, financial circumstances or particular needs. Recipients of this document are advised to consult their own professional advisers about legal, tax, financial or other matters relevant to the suitability of this information. Past performance is not indicative of future performance.