Bullish Insights Weekly Market Recap
Oct 27, 2023 • 3 min read
The Bullish Insights Weekly Market Recap includes curated industry news and analysis from the Bullish team for the week of October 23, 2023.
This week’s peak exchange trade volume (24h): $2.7B on October 25, 2023.
This week’s headlines
- Taiwan's parliament, the Legislative Yuan, advanced a proposed crypto regulation bill to its second reading. This move marks a significant step in establishing a regulatory framework for the virtual asset industry, as expressed by Yung-Chang Chiang, a Legislative Yuan member. The expectation is that the Financial Supervisory Commission will also present a draft bill, facilitating a broader consensus across different sectors.
- On Thursday, the UK’s Economic Crime and Corporate Transparency Bill was signed into law. It provides law enforcement agencies with the power to seize and freeze cryptocurrency linked to criminal activities. It notably empowers local police to seize crypto connected to crime without a conviction, a feature deemed useful in urgent cases, and includes provisions to help authorities identify other assets linked to criminal cryptocurrencies.
- The POL token upgrade is now live on Ethereum’s Mainnet, a significant development following the summer release of Polygon 2.0. As a next-generation token, POL aims to power an ecosystem of ZK-based L2 chains through a native re-staking protocol, enabling POL holders to validate multiple chains and carry out various roles.
- Kostas Chalkias, co-founder of Mysten Labs, announced that Sui is set to unveil a novel method of mnemonic format compression. This approach shrinks the typical 12-word sequence to just 8 words, without any loss of entropy.
- Fantom has launched its testnet for its upcoming tech stack upgrade, Sonic, on October 24, boasting that its throughput will rival major credit card companies and banks. The Sonic upgrade is purported to support up to 2,048 transactions per second, with a transaction finality of approximately 1.1 seconds, and aims to reduce database storage by 90%.
- According to SCMP, Binance has allegedly set up an independent entity, HKVAEX, in December 2022, with an aim to secure a crypto license in Hong Kong. The CEO of HKVAEX, Stanley Fung, stated in July that the firm is readying to submit an application and launched its trading platform earlier in February this year. It is alleged that the firm shares technical resources with Binance.
- Vodafone's Digital Asset Broker (DAB) has formed a partnership with Sumitomo Corporation, Chainlink Labs, and InnoWave, aiming to revolutionize the $32 trillion global trade ecosystem. The collaboration will utilize Chainlink's Cross-Chain Interoperability Protocol (CCIP) to boost security and promote integration among a range of IoT devices.
- After BlackRock iShares Bitcoin Trust (IBTC) was listed on the DTCC website, Bitcoin climbed by over 18% peaking above $35,000 yesterday. Subsequently the BTC/USD pair fell by over 3% after it was removed from the DTCC website but has since been reposted on the site as of October 25.
- US equity markets rebounded in Tuesday’s session with the S&P 500 ending its five-day slide.
- Tech stocks accelerated their losses in Wednesday’s session after a disappointing earnings quarter in Alphabet and Amazon.
- The tech sell-off continued through to Thursday’s session with the Nasdaq Composite seeing its worst two-day decline year-to-date. The S&P 500 fell 1.2%, the Dow dipped by 0.8% and the Nasdaq Composite fell 1.8%.
Crypto market highlights
- Bitcoin’s correlation with the Nasdaq 100 and S&P 500 has seen a trending decline for the month of October. While Bitcoin shows a stronger correlation with the Nasdaq 100, its correlation coefficient has fallen to -0.71 and for the S&P 500 -0.77 as of October 27. The asset began exhibiting an inverse correlation with the two US indices as of October 22.
- On-chain data indicates that currently 80% of addresses are now in the green. This was last seen during the '21 bull market peak. There's also been a notable uptick in Bitcoin held by short-term holders, with a 27% increase over the past 30 days.
- Bitcoin dominance has climbed to 54.1. The highest level year-to-date and since April 2021.