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Important data to watch this week:

Expectation

The Previous Month’s Announced

24.10.2023 16:45 USD Purchasing Managers’ Index (PMI)

49,9

50,1

25.10.2023 23:35 USD Fed Chairman Powell’s Speech
26.10.2023 14:00 TRY CBRT Interest Rate Decision

%32 – %35

%30

26.10.2023 15:30 USD Unemployment Benefits Applications

209K

198K

Top 5 most searched altcoins worldwide last week:

  • Ovr
  • Toncoin
  • Radix
  • Maker
  • VeChain

Israel-Palestine Tension

The increasing tension between Israel and Palestine and the harm to civilians in this conflict have intensified the pressure on stock markets. The news of Israel recalling its bureaucrats and the addition of some Western countries declaring support for Israel have reduced risk appetite. We see that investors who are avoiding risk are moving to safe havens.

Tom Emmer, Known for His Support Statements on Cryptocurrencies, Runs for Speaker of the U.S. House of Representatives

According to news reports that appeared in the media during the week, U.S. House Representative Tom Emmer, who is known for his past support statements for the cryptocurrency industry, is allegedly preparing to run for the Speaker of the House. According to claims, Tom Emmer has already garnered the support of numerous House members, and we know Tom Emmer for his supportive stance on cryptocurrencies. If his candidacy is announced, a limited impact on the side of cryptocurrencies can be expected.

Why Did Bitcoin Rise Above 30,000?

There were permission applications made in the U.S. by investment firms to establish an index fund ETF based on the spot Bitcoin (BTC) price. During the summer, these applications pushed BTC above 30,000. These applications were made to the SEC and involved large companies like Blackrock. Expectations strengthened that the SEC would prolong these applications, and subsequently, we began to see prices below 28,000. The first application that was rejected was Grayscale’s, which then went to court, and the court ruled in favor of Grayscale and against the SEC.

While it was thought that the SEC would appeal, it was announced that the SEC would not go for an appeal. This means they will not object to the applications. So, we can say the countdown has begun for Grayscale’s ETF. Additionally, JP Morgan announced that the SEC would approve ETF applications and would make a decision for Ark Investment before January 10. Right now, the SEC’s decision is inevitable for the markets. As ETF approvals come in, we can see Bitcoin gaining momentum. Moreover, some members of the U.S. House of Representatives had written letters to the SEC urging them to approve these applications. When all these expectations came together, Bitcoin became active again. The approval of ETF applications is a significant development with the potential to push the markets upwards.

Banking Giant Morgan Stanley’s Positive Report

The asset management unit of banking giant Morgan Stanley has published its report on the cryptocurrency sector. In the Morgan Stanley Wealth Management report, it is noted that the ‘crypto winter’ may have come to an end, and it is stated that most of Bitcoin’s gains came right after the halving. The report indicates that a rise in BTC after the halving is likely. The asset management company expressed that a ‘crypto spring’ is possibly on the horizon.

Bitcoin Halving is a concept related to Bitcoin mining and is an event that occurs every 210,000 blocks (approximately every 4 years). This event involves cutting Bitcoin mining rewards in half. For instance, since the inception of Bitcoin, the block reward was 50 BTC. The first halving occurred in 2012 and the block reward dropped to 25 BTC. The second halving occurred in 2016 and the block reward dropped to 12.5 BTC. The third halving took place in 2020 and the block reward dropped to 6.25 BTC.

The halving process gradually reduces the total supply of Bitcoin, and this could set up a foundation that may allow its prices to rise. Because when there is less Bitcoin available; if demand remains high, the price increases. Halving also means less reward for Bitcoin mining, which could reduce the profitability of mining and may require miners to exert more effort to keep the Bitcoin network secure.

The fourth Bitcoin Halving is expected to occur on April 25, 2024, although setting an exact date is not possible. This is because Bitcoin mining doesn’t occur at a predictable rate due to its unpredictable nature.

With the fourth halving, the block reward is expected to drop from 6.25 BTC to 3.125 BTC. Therefore, there is a completely mathematical explanation for what is written in the report. With such expectations, it would be prudent not to stay too far from the market.

Charges Dropped Against Ripple (XRP)

XRP recorded its best single-day gain in three months on Thursday following the U.S. Securities and Exchange Commission (SEC) dropping securities violation charges against senior leaders of fintech company Ripple.

About three years ago, the SEC had accused Ripple Labs, which has close ties with XRP, of raising $1.3 billion from investors by selling XRP in violation of securities laws. The legal issue had kept XRP under pressure despite a broader market uptrend. However, with the dropping of the charges, we saw an upward surge again. Under the current circumstances, XRP may offer potential investment opportunities. Therefore, closely monitoring this cryptocurrency is of importance.

Upon checking the XRP chart, we notice that it is forming a rising wedge pattern. This formation usually results in a downturn if occurring during a bull market. A rising wedge that forms during a bear market typically indicates that the downward movement will continue. Staying updated would be beneficial. It is essential to use multiple indicators in transactions and to blend fundamental and technical analysis.

ConsenSys Employees Sue Ethereum Co-Founder

Twenty-seven former ConsenSys employees who worked at the company in its early days allege that Lubin transferred assets from the Swiss arm to the American arm with the help of JPMorgan. The lawsuit, which began in Switzerland, is now moving to the New York State Supreme Court.

According to the lawsuit, Lubin, who is one of the founders of the Ethereum blockchain, transferred some of the assets of ConsenSys AG, also known as Mesh, to ConsenSys Software Inc. (CSI) located in Delaware.

The lawsuit also claims that Lubin promised these employees ownership stakes in ConsenSys, stating:

“In this process, Lubin violated his legal commitments and duties. While Lubin got rich, the plaintiffs got nothing.”

The petition states that the Brooklyn-based company, which develops products on Ethereum, has raised over $7 billion in funding with a valuation of $726.7 million. However, former employees claim that instead of ownership, they were left holding ‘papers with almost no value.’ According to the petition, these former employees were deprived of sharing in ConsenSys’s success due to ‘increased risk, lower salaries, and foundational efforts as early employees.’ Closely following this lawsuit is quite important in terms of not missing out on changes in Ethereum (ETH) prices.

The investment information, opinions, and recommendations contained in this research report are not within the scope of investment advisory.