Marcus Sotiriou, Market Analyst at the publicly listed digital asset broker GlobalBlock (TSXV:BLOK) has shared a note on the recent moves and news focused on the Bitcoin and digital assets sector.
As mentioned in the update shared with CI, Bitcoin’s (BTC) momentum has “slowed now at the key resistance level of $30k.” This coincides “with optimistic sentiment from investors about a potential alt season over the coming weeks.”
According to the firm’s management, this is “due to Bitcoin’s dominance increasing significantly recently, leaving altcoins behind.” In addition, Ethereum (ETH) tends “to lead the market in terms of weakness and strength, and ETH is currently showing strength as it climbs above the key level of $2,000.”
Could this be a sign that altcoins are largely lagging and are undervalued?
Some indicators would “suggest being cautious of a fakeout, such as altcoin funding turning positive over the past week, signaling an increase in leverage in the market.”
Altcoin funding “remains high and positive despite Bitcoin’s drop today, suggesting altcoins may need a further flush in the short term.” Whether an alt season follows a short-term flush or we “see heavy drawdown remains to be seen.”
The US is actually “seeing some progress toward providing regulatory clarity, as the US House of Representatives are creating a comprehensive regulatory framework for stablecoins, including USDC and Tether.”
The House Financial Services Committee “has a new panel focused on crypto and digital asset platforms, and released a draft bill on Saturday in preparation for a hearing this Wednesday on the topic of stablecoins.”
The bill will “be changed as conversation and debate occurs in Washington, but if the current draft became law it would put the Federal Reserve in charge of nonbank stablecoins.”
This means “that the Fed could approve and regulate digital asset platforms like Circle and Tether that issue or plan to issue their own stablecoins in US credit unions.”
This appears “to be a positive step towards some clarity in the US regarding stablecoin issuers, and much needed after the uncertainty which has ensued in the US market following digital asset platform and BUSD issuer Paxos being sued by the SEC.”
As covered, GlobalBlock Digital Asset Trading Limited is a publicly traded holding company whose wholly-owned operating subsidiary, GlobalBlock Europe, UAB, is “a European Union based digital asset broker that provides a personalized telephone brokerage service, trading platform and mobile app.”
Established by an experienced team of financial services professionals, GlobalBlock Europe, UAB acts “as a trusted agent serving the digital asset needs of individuals, corporations, institutional financial firms and intermediaries, providing best execution trading and safe custody of digital assets.”
At this time, clients or customers based in Lithuania, the UK and Republic of Ireland can be onboarded “to its digital asset broker and trading services.”