Bitazza Crypto Weekly: Ethereum and the Opportunity to Establish an ETF Amidst the Risk of Losing -

Ethereum and the Opportunity to Establish an ETF Amidst the Risk of Losing

Grayscale has filed with the U.S. SEC to convert its Ethereum Trust, launched in March 2019, into a Spot Ethereum ETF, emphasizing the company’s intent to offer investment in digital currency assets through traditional investment products.

Analysts from JPMorgan warn about the increasing risk of centralization in Ethereum as the top 5 staking providers control more than 50% of staking on the Ethereum network. Additionally, after Ethereum’s latest upgrade, the staking rewards have also decreased.

Daniel Alegre, CEO of Yuga Labs, announced a company restructuring and staff reduction, focusing on expanding the Metaverse in the Otherside section. The floor price of the Bored Ape Yacht Club project has dropped 62% this year, from 69.49 ETH on January 1 to 26.19 ETH on October 6.

Hong Kong authorities will not allow retail investors to trade Stablecoins until official regulation is in place, expected by the end of 2024. The Hong Kong Finance Minister commented that Stablecoins have been volatile and a source of market turmoil in the past.

Binance’s Spot market share has decreased for the 7th month, dropping from 38.5% in August to 34.3% in September. In January 2023, Binance’s Spot market share was 55.2%. The Future market share of Binance has also decreased from 53.5% in August to 51.5% in September, whereas it was over 62% in January.

The U.S. federal judge has denied the U.S. SEC’s appeal in the case against Ripple, alleging that the XRP token qualifies as a security. The judge has set the case hearing for April 2024 for other unresolved issues.

Weekly Technical Analysis: 10-16 October 2023

Bitcoin (BTC)

BTC has slightly contracted after failing to break through the resistance at $28,500. However, maintaining above $27,000 still leaves room for eventually surpassing this resistance level. The medium-term target remains at $30,000, and the market may move sideways this week.

Ethereum (ETH)

ETH has contracted but the support at $1,600 could hold or make a double bottom. If this support level is maintained, the trend could recover, with a medium-term target of $1,750. If it breaks the support, it could test the $1,500 level.

Bancor Network (BNT)

BNT increased by 36.2% in the past week. The price has adjusted quite rapidly, leading to high volatility. In the short term, be cautious at the support level of 20 THB. If it falls below this level, the trend could decline sharply. But if it holds, this price could be a buying point for profit at the previous resistance of 25 THB.

Serum (SRM)

SRM increased by 30.6% in the past week. However, the coin has relatively low liquidity and high volatility, so caution is advised in high trading.

Trading and Investment Considerations For The Week

The announcement of higher-than-expected Non-Farm Payroll numbers led to a sell-off in various assets. This, combined with the 10-year U.S. Treasury yield touching a high of 4.85% and a strengthening Dollar Index, resulted in gold and stock markets being sold off before recovering by the market close on Friday. Keep an eye out for signs that the trend in U.S. Treasury yields may reverse, which would be positive for other assets.

The Fed Watch Tool reveals a probability that the U.S. Federal Reserve will increase interest rates by 0.25% in the next meeting, which has risen from 20%. This aligns with the “Higher For Longer” policy to maintain high-interest rates for an extended period.

On Wednesday, October 11, details from the last meeting of the U.S. Federal Reserve will be disclosed. Watch for individual committee members’ opinions on economic trends. On Thursday, October 12, the CPI (Consumer Price Index) for September will be announced, which will influence the decisions in the next Federal Reserve meeting.

The conflict between Israel and Hamas directly affects oil prices. Monitor if the trend in oil prices recovers to the upside, as it could put pressure on inflation, making it possible for the U.S. Federal Reserve to increase interest rates.

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