Crypto Weekly Wrap: 7th June 2024
Robinhood to Acquire Bitstamp for $200 Million
Trading platform Robinhood has announced its intention to acquire the U.K.-based crypto exchange Bitstamp for $200 million in cash. The deal, expected to close in the first half of 2025, marks a strategic move by Robinhood to expand its crypto presence globally and attract institutional clientele. Bitstamp, founded in 2011, is one of Europe’s largest and most regulated crypto exchanges, offering spot trading of over 85 cryptocurrencies and other crypto services like institutional lending and staking. This acquisition will enable Robinhood to enhance its crypto product offerings and expand its international footprint, challenging other major players like Coinbase.
Bitcoin ETFs See Record Inflows Amid Rising Prices
U.S.-listed spot bitcoin ETFs experienced a significant influx of over $880 million on a single day, led by Fidelity’s FBTC, which saw $378 million in inflows. This surge in investment activity pushed Bitcoin’s price to over $71,000 in Asian trading hours, marking a 3% increase in 24 hours. The CoinDesk 20 index, which tracks the largest tokens, also rose by 2.65%. This heightened activity comes after a period of low inflows and is attributed to a generally bullish sentiment in the market. The ETFs have attracted $3.3 billion in the past four weeks, reflecting increasing investor confidence and a favourable outlook for cryptocurrencies.
Source: Yahoo Finance
U.S. Antitrust Chief Investigates AI Monopoly Risks
U.S. Antitrust Enforcer Jonathan Kanter has launched an investigation into potential monopolies in the AI sector, emphasising the urgency for regulatory scrutiny to prevent market dominance by current tech giants. Kanter’s investigation will focus on “monopoly choke points” such as computing power, data, cloud services, engineering talent, and hardware. Nvidia’s dominance in the GPU market, essential for AI training, is of particular concern. The investigation aims to ensure that AI technology remains competitive and not controlled by a few large corporations. Emerging AI-focused platforms are also leveraging blockchain technology to create decentralised AI solutions, aiming to prevent monopolistic control in the AI industry.
Luxury Fashion Brands Embrace Blockchain for Authenticity
OTB Group, which owns luxury brands like Maison Margiela and Jil Sander, has integrated blockchain technology to issue digital authenticity certificates for its products starting with the Fall/Winter 2024/2025 collections. This initiative aims to enhance transparency and customer trust by providing verifiable information about the product’s origin and uniqueness. OTB Group is a member of the Aura Blockchain Consortium, which offers blockchain solutions for luxury brands. By embedding NFC chips in their garments and accessories, OTB’s brands can offer a higher level of product transparency and traceability, addressing the challenges of authenticity and sustainability in the luxury market.
Technical Analysis of Bitcoin (BTC)
Bitcoin (BTC) is currently trading at approximately $71,090, experiencing a slight dip of about 1% from its recent highs. The pivot point for Bitcoin is set at $70,600, acting as a critical level in today’s trading dynamics. If Bitcoin maintains its position above this pivot point, it is likely to encounter resistance at $71,800, followed by $72,500. Conversely, a drop below $70,600 could see support levels at $69,650.
Recent price movements indicate a bullish breakout from a symmetrical triangle formation at the $70,600 level, suggesting a continued upward trend. The 50-day Exponential Moving Average (EMA) at $69,000 and the Relative Strength Index (RSI), which after a major fall settled at 49 indicate a calm down from strong buying interest. However, Bitcoin faces a double-top pattern near the $71,800 resistance, which could challenge further gains. Increased buying pressure may enable Bitcoin to surpass this resistance level, potentially targeting $72,500.
Investors might consider buying Bitcoin if it sustains above the $70,600 mark to capitalise on potential gains. On the other hand, a drop below this level could indicate a bearish shift. The overall market sentiment remains positive, with increasing global liquidity and significant institutional interest suggesting a favourable environment for Bitcoin’s continued growth.
Source: TradingView
These developments highlight the dynamic and rapidly evolving nature of the crypto market, driven by strategic acquisitions, regulatory scrutiny, and technological advancements. Investors should stay informed and cautious, considering both short-term opportunities and long-term implications in their investment strategies.
TVL:
Source: DefiLlama
Weekly Heatmaps:
Source: QuantifyCrypto
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