Market Sentiment Curbs Bitcoin Plunge, Virtual Coin and NFT Trading Market Changes

Publisher: EAIOT Time: 2023-05-02 Category: Block Chain 506Views 0Comments

1. failed to continue the momentum of the streak! Bitcoin Falls More Than 2% on First Day of May Amid Subdued Market Sentiment

After four straight months of gains, bitcoin weakened on the first day of May. Bitcoin was down 2.52% at $28,608 per coin. Ether, the second largest cryptocurrency, also fell more than 2 percent to about $1,850 per coin.


So far this year, bitcoin has rebounded sharply from last year's cryptocurrency crash, gaining 72 percent. Bitcoin's rise has been driven by market bets that the Federal Reserve will eventually shift to an easier monetary policy and that the U.S. banking crisis has eroded confidence in fiat currencies. However, bitcoin is now stalling near $30,000, while traders wait for further catalysts.


The U.S. banking crisis appears to be making a comeback, with First Republic Bank (FRC.US) at the center of the round. Regulators have been trying to resolve the issue as quickly as possible, and the uncertainty surrounding First Republic Bank has dampened sentiment in global crypto markets. "The market is very nervous as it waits to see what happens with First Republic Bank," said Adrian Przelozny, head of cryptocurrency exchange Independent Reserve. "Monday's bitcoin volatility may just be volatility related to that. With the market down slightly, some long positions were closed out, as the market fell further."


Bitcoin has rallied for the first four months of the year, the longest streak (on a monthly basis) since March 2021. Notably, historical data shows that over the past decade, bitcoin's four-month rally in a row foreshadowed an average 260% rise in bitcoin over the next year.


2. Nigeria's Securities and Exchange Commission plans to allow issuance of asset-backed tokens, but ban cryptocurrencies

The head of securities and investment services at the Nigerian Securities and Exchange Commission, Abdulkadir Abbas, said in an interview that the agency is considering allowing the issuance of asset-backed tokens backed by equity, debt and other assets, but not "cryptocurrencies," on licensed digital exchanges, Bloomberg reported. "As a regulator, we always like to make a very simple and clear proposal first and then move on to the complexities." The move could attract digitally savvy people to buy local assets, including stocks, which have been shunned for years.


The Nigerian Securities and Exchange Commission aims to register fintech companies as digital sub-brokers, crowdfunding intermediaries, robo-advisors, fund managers and token issuers of tokenized assets, but it will not accept crypto-exchange registrations until it reaches an agreement on standards with the central bank, which in 2021 ordered commercial lenders not to facilitate transactions.


Abbas said willing digital exchanges will undergo a year of "regulatory incubation" during which they will only offer framework services monitored by the country's Securities and Exchange Commission to study their operating models and suitability to offer services in the country.


3. NFT sales in April were approximately $732 million, down 5.76% YoY

According to Bitcoin.com, citing CryptoSlam data, NFT sales in April were $732.12 million, down 5.76% from $776.88 million in March. Of these sales, among others, Ether-based NFT sales dominated the market with $485 million in transactions. However, sales of Ether-based NFTs fell by 19% in April compared to March's figures. Meanwhile, Solana-based NFT sales recorded $88.16 million, down 6.78% from the previous month. After Ether and Solana, the top five blockchains in terms of NFT sales in April were Polygon, Immutable X and BNB Chain.


The top-selling NFT series in April was Bored Ape Yacht Club (BAYC) with $45.1 million in sales, while Azuki was the second largest NFT series in terms of sales with $21.91 million, followed by Nakamigos and Mutant Ape Yacht Club.


4. Web3 market size is expected to reach $81.9 billion in 2032, with a compound annual growth rate of 44.5%

According to Globenewswire, Acumen Research & Consulting, a market research and advisory firm, released the "2023-2032 Web3.0 Market Forecast" report, which shows that the Web3.0 market is expected to reach US$81.9 billion by 2032, growing at a CAGR of 44.5%, with Asia Pacific's Web 3.0 market will experience significant growth, with an estimated CAGR of about 47% from 2023 to 2032.


A previous Deloitte report also showed that the insurance industry could save up to $500-$10 billion annually by adopting blockchain technology due to reduced fraud and improved claims processing.


5. Finewill Capital Launches Tens of Millions of Dollars Web3 Gaming Industry Fund

According to official news, Finewill Capital announced the launch of a tens of millions of dollars Web3 gaming industry fund, which will invest in the Web2 gaming + blockchain complex track due to its bullishness on the innovative business form of Web3 gaming.


The fund is jointly led by Korean game company Wemade and blockchain investment fund Mirana Ventures as cornerstone investors, providing support guidance and industry resources in the field of traditional games and blockchain for investment projects.


6. Attacks in the crypto space have caused over $100 million in losses in April

According to CertiK Alert data, attacks in the crypto space in April have caused a total of about $103.6 million in losses, including about $19.8 million from the Lightning Lending attack and about $9.3 million from Rug Pull.