The SOMA.finance Weekly Wrap-up #118
SOMA.finance
A Revolutionary Multi-Asset DEX & Issuance Platform for Tokenized Equities, Digital Assets, and NFTs
Market Overview
Bitcoin experienced its first major post-halving bull run correction this week after topping out at a new record high of $99,860 last Friday, and rather than bemoan the 9% pullback, traders largely agreed that the correction is healthy and will allow BTC to establish a new floor of support from which to rally higher.?
Experienced hodlers know that when crypto prices move too high, too fast, that often sets the stage for a sharp downturn, frequently with the same magnitude and force, so the sight of Bitcoin entering into consolidation above $90,000 was welcomed by most.?
The pullback also gave traders the opportunity to focus on altcoins, kicking off the other favorite post-halving trend – altcoin season – as numerous tokens recorded double and triple-digit gains as funds migrated from BTC to low-cap tokens. Fortunately, steady demand from spot BTC ETFs helped support Bitcoin at higher levels while profits rotated into alts.?
After hitting a new record high on Friday, Bitcoin trended sideways near support at $98,000 over the weekend but was hit with a wave of sell-side orders on Monday and Tuesday that dropped it to a low of $90,675. But the downturn was short-lived as bulls went back to work on Wednesday, pushing BTC back above $97,000, and it closed the Thursday daily candle at $95,634.
At the time of writing, Bitcoin trades at $96,465, and the total cryptocurrency market cap stands at $3.35 trillion, an increase of 2.76% over the past week. The DeFi market cap currently stands at $136.9 billion, with a 24-hour trading volume of $10.3 billion, which is 6.9% of the total crypto market volume.
Crypto News
Stablecoin Partnership – Prominent financial services firm Cantor Fitzgerald announced that it had acquired a 5% stake in Tether, the issuer of the world’s largest stablecoin, USDT. The $600 million investment deal was reportedly finalized within the past year and positions Cantor Fitzgerald at a pivotal intersection of finance, politics, and digital assets. In addition to the stake acquisition, Cantor Fitzgerald and Tether are also collaborating on a $2 billion Bitcoin lending program that will allow clients to borrow U.S. dollars using Bitcoin as collateral.
?
SEC Out, CFTC In – President-elect Donald Trump is reportedly planning to expand the power of the CFTC and put the regulator in charge of overseeing the digital asset market as part of Trump’s goal of limiting the power the SEC has over the digital asset industry. The CFTC, which currently oversees the $20 trillion U.S. derivatives market, is widely perceived as having a lighter regulatory touch than the SEC, which would be a welcomed sight for crypto companies and investors.?
Crypto Trading Incoming – According to Rick Wurster, the incoming chief executive of Charles Schwab, the financial services firm is in the process of laying the groundwork to offer spot crypto trading and plans to launch the service once regulations in the U.S. make it easier to do so. Schwab currently offers their clients access to crypto-linked exchange-traded funds and crypto futures, but that is only a small subset of the broader crypto market and doesn’t include some of the most popular tokens in the altcoin sector.?
And in the World of Bitcoin as a Strategic Reserve Asset…
Bitcoin-Friendly City – Vancouver Mayor Ken Sim submitted a notice of motion at the recent city council meeting showing he intends to introduce a bill titled “Preserving of the city’s purchasing power through diversification of financial resources: Becoming a Bitcoin-friendly city,” which will recommend the city adds Bitcoin to its balance sheet as part of efforts to diversify its investments. Sim established his pro-crypto leanings during his campaign for Mayor after his political party, A Better City, announced that it would accept crypto donations.?
?
Brazil Bets on Bitcoin – Brazil Congressman Eros Biondini has proposed a bill to establish a sovereign federal Bitcoin Reserve – dubbed RESBit – potentially reshaping the country’s approach to digital assets. Under the proposed legislation, the BTC reserve would complement existing financial assets up to a maximum of 5% of the country’s reserves through phased purchases. The bill is now under review by the Speaker of Brazil’s House of Representatives and will be directed to committees for debate upon approval.
Let’s Get Ready to Rumble! – Video-sharing platform Rumble announced it plans to add Bitcoin to its corporate balance sheet, with its board of directors approving the strategy and allocating up to $20 million of the company’s excess cash reserves to BTC. When asked why the company is making the move, Rumble Chairman and CEO Chris Pavlovski said, “Unlike any government-issued currency, Bitcoin is not subject to dilution through endless money-printing, enabling it to be a valuable inflation hedge and an excellent addition to our treasury.”