Building Blocks by Fuze #26
Your route to web3 alpha in the MENA region. Whether you’re a seasoned HODLer or just getting into crypto - we’ve got something for everyone to keep you ahead of the curve. By the community, for the community - Building Blocks.
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Birds Eye View (vs Last 7 Days)
?? Overall Crypto Market Cap: $2.3 Trillion (+6%)
?? BTC Dominance: 56.67% (+0.44 PPT)
?? Price Snapshot:
?? Bitcoin: $66573 (+7%)
?? Ethereum: $2600 (+7%)
?? BNB: $592 (+2.3%)
?? Solana: $154 (+8%)
Analysts predict Bitcoin to 'break loose' at $70K as 'Uptober' flips green
Bitcoin has jumped above $64,000 for the first time since October 7, fueling talk among crypto experts that this could be the breakthrough moment market watchers have been waiting for this month.
While Bitcoin hitting $64,000 doesn't mean new records or even long-term highs, it has shifted the mood among analysts following Bitcoin's dip to $59,000 on October 10, in a month that's typically one of Bitcoin's best performers.
"It's about to happen," 10T Holdings creator Dan Tapiero said in an October 14 X post after Bitcoin climbed past $64,000, a 3.16% rise since October 13.
Tapiero hinted that once Bitcoin reaches price levels it hasn't seen in roughly four months, it might soar to new heights, which many traders have been expecting in the fourth quarter.
Tapiero noted that Bitcoin's price is "just coiling and coiling," a phrase traders use when an asset's price narrows into a tighter range. This often tells traders that a breakout might be coming soon.
Also, today's Bitcoin price gains have pushed October back into positive territory, with Bitcoin up 2.48% since the month began.
Sharing a similar view, mystery crypto trader Jelle believes Bitcoin's long consolidation is ending.
Since the April 20 Bitcoin halving, Bitcoin has been moving within a wide range from $58,000 to $72,000.
"2 higher lows, a higher high & prices pushing for new highs again," Jelle stated in an October 14 X post.
"Summer slump is over. Time for some excitement," they added.
Meanwhile, crypto trader Matthew Hyland pointed out that Bitcoin's 10-day Simple Moving Average (SMA) - which figures out the average price of Bitcoin over the last 10 daily candles - is "turning upward."
Hyland noted that "80%-90% of the time in 2024 when the 10 SMA was moving up, BTC price moved up."
What is your investment approach for Bitcoin in this month? Are you buying more or simply holding on to your purchases made during the last dip? Let us know in the comments below!
Report: 47% of traditional hedge funds maintain crypto exposure
Clearer rules for spot Bitcoin and Ether ETFs in the US and Asia have led nearly half of regular hedge funds to dip their toes into digital assets.
A study by the Alternative Investment Management Association and PwC found that 47% of hedge fund managers trading in traditional markets now have some crypto exposure, as reported by Bloomberg.
This is up from 29% in 2023 and 37% in 2022, based on responses from 100 hedge funds surveyed.
James Delaney from AIMA said clearer global rules were making hedge funds more confident about crypto:
All hedge funds currently involved in crypto plan to keep or grow their positions. While 67% will maintain their current crypto investments, 33% aim to increase their exposure soon.
Hedge funds used different ways to get into crypto. The report shows 58% traded derivatives, while 25% bought tokens directly. Derivatives trading went up, but direct token trading fell by over half compared to 2023.
Edward Chin from Parataxis Capital Management, a digital asset investment firm, pointed out the chance for bigger returns compared to regular markets:
Still, 76% of hedge fund managers not in crypto say they probably won't get into digital assets in the next three years.
The report noted that two-thirds of regular hedge funds don't plan to use spot Bitcoin ETFs in their current digital asset plans.
On Oct. 3, Quinn Thompson from Lekker Capital said buying Bitcoin at around $61,000 was a "no-brainer."
Looking at Bitcoin's price moves since March 5, when BTC hit a record high of $73,700, Thompson saw a "similar setup" to when Bitcoin defied a key technical indicator.
He concluded that Bitcoin's movement suggested prices might soon go up. Do you feel he's thinking on the right track?
Dubai’s crypto regulator VARA cracks down on unlicensed firms
Dubai's crypto watchdog has begun a clampdown on unlicensed crypto businesses and companies breaking its advertising rules.
On Oct. 9, Dubai's Virtual Assets Regulatory Authority (VARA) handed out penalties and stop orders to seven firms for violating marketing rules and running without needed permits.
VARA said it's doing more digging with help from other local officials. The watchdog didn't name which companies got the punishments.
In the notice, the crypto regulator also told the public to "stay away from unlicensed firms." VARA said that dealing with unregulated groups puts users and businesses at risk of bad press and money loss.
The watchdog also said that working with such providers could lead to legal trouble. VARA stressed that only licensed companies can offer virtual asset services in and from Dubai, and told the seven groups to halt all crypto-related work or any marketing and ads about digital assets.
VARA also said it had given out fines of 50,000 ($13,600) to 100,000 ($27,200) United Arab Emirates dirhams to each group.
VARA's Regulatory Affairs and Enforcement team added that their main goal is to keep Dubai's crypto world safe for investors and buyers while being open to rule-following groups.
The recent crackdown follows the watchdog's latest moves to toughen its rules on crypto ads.
On Sept. 26, the crypto regulator said that companies selling virtual asset investments should add a clear warning to their ads. VARA said that crypto ads should state that virtual assets might lose value and can change a lot.
VARA CEO Matthew White said these rules would make sure that virtual asset providers work responsibly, building trust and openness in the market.
And while some companies got fined - others received licenses! We just saw the announcement by OKX that they are now fully licensed by VARA!
UAE is slowly becoming one of the most amazing and efficiently regulated countries in the world for the crypto industry. Which other countries can learn from organizations like VARA? Let us know in the comments below!
Stripe’s new stablecoin option gains traction in 70 countries on Launch Day
Stripe, a leading payment processor, saw users from 70 countries embrace its newly released stablecoin payment option on the first day of launch, showing strong worldwide interest in new payment methods.
Stripe was the first major payment company to accept Bitcoin BTC$66,849 in 2014. However, the company reversed course in 2018, citing slow transaction times and high costs as reasons for dropping Bitcoin payments.
On Oct. 9, Stripe rolled out USD Coin USDC$1.00 stablecoin payment options for customers after years of planning. In 2021, three years after stopping BTC payments, Stripe hired a new crypto team to work on "everything from web/mobile UIs to backend, payments and identity systems."
After Stripe allowed businesses to take USDC payments, people from over 70 countries made stablecoin transactions on day one, according to Bloomberg. Jeff Weinstein, product lead at Stripe, said:
When announcing the return of crypto payments in April, Stripe co-founder and president John Collison said, "Crypto is finally making sense as a way to pay."
Stripe supports USDC on Ethereum, Solana and Polygon networks and Pax Dollar on Ethereum and Solana. All stablecoin payments are changed to US dollars before being kept in Stripe wallets. The company takes 1.5% of the payment amount in US dollars.
In June, Stripe teamed up with crypto exchange Coinbase to offer fiat-to-crypto on-ramps and off-ramps to users on both platforms.
As part of the agreement, Stripe added support for Base across its crypto products while Coinbase integrated Stripe's fiat-to-crypto on-ramp service into Coinbase Wallet.
Report: Blockchain data firm Arkham to launch derivatives exchange
Blockchain data firm Arkham Intelligence reportedly plans to launch a crypto derivatives exchange as early as next month, according to Bloomberg.
The platform will target retail traders and rival existing exchanges like Binance, Bloomberg reported, citing an unnamed source familiar with the plans.
Arkham is reportedly already seeking a license in the Dominican Republic to operate the exchange there.
The crypto derivatives market is booming, largely driven by retail investor trading activity.
Crypto derivatives trading volume topped $3 trillion in September, up from about $1.5 trillion a year earlier, according to a CCData report.
Adoption is being fueled by a wave of new crypto derivatives products, including on established exchanges like the Chicago Mercantile Exchange (CME).
On Sept. 29, CME's Bitcoin Friday Futures (BFF) launched in what CME called the "most successful crypto futures launch ever."
The contracts drove record first-day trading volume for crypto futures, with over 31,498 contracts traded across two weeks, CME reported.
BFFs are sized at just one-50th of a Bitcoin BTC$67,036. This is similar to Coinbase's "nano" Bitcoin futures, sold in one-100th BTC increments.
On Oct. 8, Crypto.com's North American derivatives exchange Nadex listed contracts tied to memecoins like Pepe PEPE$0.00001041 and Floki Inu (FLOKI).
It also added products linked to Dogelon Mars (ELON) and BONK, per Oct. 7 Commodity Futures Trading Commission (CFTC) filings.
Options on Bitcoin ETFs will likely launch in the U.S. by Q1 2025, says Bloomberg Intelligence analyst James Seyffart.
Arkham is known for its popular tool that tracks blockchain transactions and identifies entities linked to crypto wallet addresses.
It raised $12 million from investors including OpenAI founder Sam Altman.
Arkham's token, ARKM, jumped over 16% after Bloomberg's report, according to CoinGecko.
Taiwan to trial crypto custody services through local banks in 2025
Taiwan is eyeing broader crypto adoption as local regulators plan to test digital asset custody services through domestic banks.
Taiwan's Financial Supervisory Commission (FSC) is gearing up to launch a trial run of crypto custody services for institutions, local news outlet Central News Agency reported on October 8.
The FSC plans to start taking applications in early 2025, with three private Taiwanese banks already showing interest in testing crypto custody services.
According to the FSC's guidelines, banks applying for the trial must specify which digital assets they'll store for clients, such as Bitcoin, Ether, and Dogecoin.
The banks also need to outline their target users, whether they're seasoned investors, regular folks, crypto platforms, or others.
Hu Zehua, who heads the FSC's planning division, said at a Monday press briefing that the agency will share trial details at least 15 days before accepting applications. The FSC will also ask for public input on the proposed trial and tweak the process as needed.
This news comes as Taiwan's government gets more involved with cryptocurrency.
On October 2, the FSC updated Taiwan's anti-money laundering rules for crypto use. The new rules say all crypto companies must sign up with the government by September 2025 or face tough penalties, including up to two years in jail or $156,000 in fines.
In September, Taiwan's FSC allowed professional investors to deal with foreign crypto exchange-traded funds. The move aimed to give investors more options and boost Taiwan's financial market competitiveness, the commission said.
Taiwan has become one of Asia's most innovative markets, especially in tech and finance. Legal experts from Regulated United Europe say Taiwan doesn't see crypto as real money, but its government allows and oversees crypto investments. The FSC is working hard to set clear rules for this new industry.
The World Blockchain Summit thinks Taiwan could be the "next big crypto market," even though the government hasn't passed any crypto laws yet.
While Taiwan embraces crypto, its neighbor mainland China cracked down hard on crypto transactions in 2021.
Weekly Merchandise Giveaway
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