Crypto market cautiously optimistic
The price of bitcoin rose slightly last week, bringing cautious optimism to the crypto market. All eyes are now on Washington, where some of the uncertainty could be resolved next week. More on that, along with all the major news, in this edition of Market News.
Market update
Since the bear market bottom in November 2022,Ā bitcoin has experienced four major rallies, doubling its price in just a few months each time. The low of ā¬67,500 on April 7th marked the start of a strong rise. No doubling this time, but a 56% increase to ā¬105,600 on August 14th.
Since then, we've been in a correction that brought us down 13% to ā¬91,500 on September 1st. There are some early signs that this correction may already be over. The rise above the volume-weighted average and a reversal of the short-term trend, for example.
That would make this correction the shortest and mildest of the current bull market. It's therefore quite conceivable that more time is needed, and perhaps even lower prices as well. The US interest rate decision on Wednesday 17 September, particularly the comments that follow, could trigger volatility.
Last week's rising prices brought a return of optimism, however it's worth considering the possibility that we will see a continuation of the correction in the weeks ahead.
Featured
Tokenization gaining momentum
Imagine buying shares not through a bank, but receiving them as digital tokens straight into your wallet. That's tokenization: traditional financial products on the blockchain. The underlying value remains the same, but ownership and trading are structured differently.
Why is this such a breakthrough? Because tokenization removes barriers. Securities can soon be traded 24/7, split into fractions, and passed from investor to investor without an intermediary. What email did for physical post and Spotify for CDs, tokenization can do for financial markets. The same content, but faster, more flexible, and globally accessible.
For years it remained at the testing stage, even in the Netherlands, where ABN AMRO, issued bonds as tokens on public networks. Such pilots explored both the underlying technology as well as regulation.
But the pace has now picked up unmistakably. In just two weeks: Ondo Finance hasĀ tokenized more than a hundred US shares and ETFs. FidelityĀ launched a $200 million money market fund on Ethereum. NasdaqĀ applied for approval to trade tokenized securities on its main market. And BlackRock? Blackrock is investigating how itsĀ ETFs can be offered as tokens, on top of the successful tokenized fund BUIDL, which already manages billions.Ā
The message is clear: major players are taking tokenization very seriously. The sums are substantial, the applications concrete, and the ambitions bold. Bank of America classified tokenization this week as "mutual fund 3.0." The giant of traditional financial sees it as the next step in the evolution, after the classic investment fund and the introduction of ETFs. In effect, the bank is saying this is no longer a toy, but the future of investing.
In other news
Vietnam launches five-year crypto pilot with strict conditions. Only domestic companiesĀ will be allowed to offer trading platforms,Ā and all transactions, issuance, and settlements must be in Vietnamese dong. Participation requires at least 10 trillion dong in capital (around 323 million euros), with at least 65% contributed by institutional investors. Foreign shareholders may hold a maximum of 49%.
CFTC reviews whether foreign crypto exchanges can serve US clients under MiCA. If Europe's new rules are judged 'sufficiently robust', a platform like Bitvavo could theoretically be allowed to serve Americans without a separate US entity. That could significantly narrow the gap between global liquidity and US investors - if the CFTC truly gives the green light.
Kazakhstan's president backs full-scale crypto push. President Tokayev proposesĀ building a strategic crypto reserve via the central bank and creating a 'CryptoCity' in Alatau, a fully digital city where residents can pay in crypto. Dedicated digital asset legislation will follow by 2026.
Tether launches American stablecoin USAT. Unlike USDT, it must comply with stricter regulations, including transparent reserves and regulatory oversight. TheĀ issuance of the coin will be handled by Anchorage Digital Bank. Tether aims to stay on the right side of American law and is gearing up for aĀ Captain America-style charge into the American market, though the launch date remains under wraps.
Satoshi Radio:Ā The latest episode of Satoshi Radio offers a comprehensive market update, explaining how key economic data shapes the outlook. Last week's news is also covered, including a significant crypto hack, crypto adoption in India, and the large sums of money involved in treasury companies.
This article is for informational purposes only and does not constitute a marketing communication or recommendation. None of the content herein should be considered as investment advice or a substitute for it. Bitvavo makes no guarantees regarding the accuracy or completeness of the provided information. Investments involve risks. There is a possibility of losing your invested capital.