Dear Teroxx Community,
This week we saw a digital asset market that remained positive but showed slight declines in volatility.
Weekly overview
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Digital Asset News
The 2023 G7 Summit will be held in Japan, specifically in Hiroshima, from May 19 to 21. At this meeting, the group of the world’s seven most industrialized countries will discuss various topics related to the global economy and financial markets. The discussions will revolve around central bank digital currencies (CBDCs) and international regulation of cryptocurrencies, among others.
“As far as crypto assets are concerned, views differ somewhat from country to country. But the consensus is undoubtedly that we need more regulation, especially after the FTX shock,” he said. As a reminder, CBDCs are clearly distinct from cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), which are special digital currencies issued by governments and tied to fiat money.
Germany is generally considered to be one of the European countries most ready to adopt cryptocurrencies. The Global Crypto Q1 2022 ranking lists the country as the most favorable region in the world for digital assets.
Germany is among the top five EU economies advocating the adoption of the digital euro. This ECB project, launched in June 2021, could come to fruition in 2026 or 2027.
Over 1 million Ether worth $2.1 billion has now been withdrawn from the Beacon Chain on Ethereum within the first four days after the Shapella hard fork, and Ether climbed above $2,100 for the first time in eleven months.
The 1.03 million ETH withdrawn comes on the back of 473,700 withdrawals. Saturday, April 15 saw the most Ether withdrawn at 392,800 ETH, according to data from beaconcha.in. Of the active validators, nearly 87 percent, or 469,000 out of 540,000 total, can now withdraw their staked Ether.
The Ethereum community is divided on what impact Shapella would have on the Ether price. Still, it saw a nearly 10 percent increase in the first four days after.
The proposed Markets in Crypto-Assets (MiCA) crypto bill includes a set of standards aimed at establishing a regulatory framework for cryptocurrencies and digital assets in Europe. It is a set of rules that are part of a broader package of EU measures known as the Digital Finance Package. It primarily regulates crypto service providers and also introduces strict rules for stablecoin issuers.
The MiCA law aims to set standards for a variety of companies classified as “Cryptographic Asset Service Providers” or CASPs. This classification includes companies that provide services such as custody, exchange trading, or the sale of digital assets.
Under MiCA regulation, anyone wishing to offer a crypto asset to the public must submit a detailed project design for the crypto asset in question, known as a “white paper.”
Notably, non-fungible tokens (NFTs) have so far been excluded from the MiCA regime, as issuers of assets that are “unique and non-fungible” are exempt from the requirement to prepare a whitepaper. However, under this wording, assets issued as part of a large series or collection may again be considered fungible.
A stagnation in Bitcoin without major sell-offs could trigger a price rally in the altcoins. A fundamentally positive market structure usually leads to the fact that after a few weeks the volume flows from large to small and thus altcoins come into the focus of investors and thus record a rise.
Digital Asset Markt
While Bitcoin is approaching further stagnation at a high level and support settlements are the order of the day, most altcoins are still rising in price. This highlights the market sentiment in the digital asset market, which tends to be positive and friendly for investors.
In the coming phase, the global financial market issues will again come to the fore and have a decisive impact on the further price development.
Bullish outlook: A long term support settlement above half of $28,500 could provide positive price action.
Bearish outlook: Major sell-off or profit-taking could lead for a decline to the $25,000 level.
