Weekly Update: 17th of April
What happened between the 10th and 17th of April?
Financial markets and digital assets weakened as CPI figures came in higher than expected, coinciding with increasing tensions in the Middle East amid the Israel-Iran conflict. Read more
SEC issued a Wells Notice to DeFi protocol Uniswap, notifying the protocol that legal actions are on their way. Read more
Hong Kong’s financial regulator conditionally approved the launch of several Bitcoin and Ether spot ETFs. Read more
Only six altcoins in the top 50 have outperformed Bitcoin in 2024 as the altcoin market struggles to find footing. Read more
Macroeconomic conditions weaken
On April 10th, the US Consumer Price Index (CPI) figures were published, and disappointingly, for the fourth consecutive month, the CPI year-over-year exceeded expectations. As a result, the majority of interest traders now anticipate the first cuts in September instead of July, with expectations reduced to two cuts instead of three. Additionally, as tensions increase in the Middle East due to the Israel-Iran conflict, investors have chosen a risk-off strategy out of fear of escalation. As a result, financial markets, including Bitcoin, have begun to weaken, slowing down its upward momentum.
The SEC continues its legal attack
Over the past two years, the US Securities and Exchange Commission (SEC) has initiated legal actions against several digital assets firms and protocols. On the 10th of April, decentralized exchange (DEX) Uniswap came under scrutiny. Uniswap received a Wells Notice from the SEC, signaling the conclusion of its investigation and the preparation for legal action. Uniswap Labs, the team behind Uniswap, has announced its intention to challenge the SEC's allegations, asserting that they are unfounded.
Hong Kong welcomes Bitcoin and Ether spot ETFs
On the 15th, Hong Kong's markets regulator, the Securities and Futures Commission, conditionally approved its first Bitcoin and Ether spot ETFs. At least three offshore Chinese asset managers have approval for launching an ETF. This conditional approval positions Hong Kong as the first Asian city to embrace such financial instruments in the digital assets realm. Following the US's lead in January, Hong Kong appears keen to stay competitive and position itself as the digital asset hub in Asia and potentially worldwide.
Established altcoin assets lag in 2024 compared to Bitcoin
Throughout 2024, Bitcoin has remained the main narrative in the market, driven by significant inflows into ETFs and anticipation surrounding the Bitcoin Halving. As of 2024, Bitcoin has outperformed all but six of the top 50 altcoins, a noteworthy achievement considering altcoins typically have lower market capitalizations. These assets include Dogecoin, Shiba Inu, Binance BNB, Mantle, Stacks, and Render. Where Bitcoin managed to stabilize amid delayed interest rate cuts and escalating tensions in the Middle East, the broader altcoin markets have experienced significant declines in the past week.
In other digital assets news
On the 19th of April, Bitcoin will undergo its fourth Bitcoin Halving, decreasing the block reward from 6.25 to 3.125 Bitcoin, causing a significant change in supply and demand.
Top-tier game developer Ubisoft has teased the release of its first blockchain-based video game before the end of 2024, the game will be built on Oasys, a gaming blockchain protocol.
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