Crypto Weekly Wrap: 22nd March 2024
Mar 22, 2024

Crypto Weekly Wrap: 22nd March 2024

Latest Developments on the Crypto Market

The cryptocurrency market recently witnessed BlackRock, a major asset management giant, delving into asset tokenization by launching a fund on the Ethereum network. This move highlights the increasing interest of traditional finance giants in blockchain technology. Moreover, Starknet, an Ethereum Layer 2 network, plans to introduce "parallel execution" to enhance transaction throughput and speed, mirroring features seen in competing blockchains like Solana. These developments signify a growing convergence between traditional finance and blockchain technology, driving innovation and adoption across the crypto market.

BlackRock's Entry into Asset Tokenization

BlackRock announced its foray into asset tokenization by launching a real-world asset (RWA) tokenization fund on the Ethereum network. Partnering with asset tokenization company Securitize, BlackRock aims to provide investors with blockchain-based exposure to real-world assets backed by cash, U.S. Treasury bills, and repurchase agreements. The strategic investment in Securitize underscores BlackRock's commitment to advancing digital asset solutions for its clients. This move follows similar initiatives by other finance giants, signalling a broader trend towards the tokenization of traditional investments.

Starknet's Parallel Execution Feature

Starknet, an Ethereum Layer 2 network, unveiled plans to introduce "parallel execution," enhancing transaction throughput and speed. This feature, akin to multitasking for rollups, is expected to significantly improve the efficiency of Starknet's sequencer, facilitating faster settlement on the Ethereum network. Additionally, Starknet aims to implement fee-reduction measures, including initiatives like "Volition" for data availability and "DA compression" to reduce data footprint, resulting in lower fees for users. These enhancements underscore Starknet's commitment to scalability and affordability in blockchain transactions.

SEC's Potential Reclassification of Ethereum

The U.S. Securities and Exchange Commission (SEC) is reportedly considering reclassifying Ethereum's native token, ether (ETH), as a security, sparking speculation and concerns within the crypto community. While uncertainties loom regarding the nature and scope of the SEC's inquiry into Ethereum's classification, stakeholders are closely monitoring developments amidst regulatory scrutiny. The outcome of this potential reclassification could have significant implications for Ethereum's ecosystem and the broader crypto market, impacting investor sentiment and regulatory compliance.

ETH ChartETH Analysis

Source: TradingView

Technical Analysis of Bitcoin

Bitcoin's price has exhibited a strong correlation with equities, presumably influenced by the Federal Reserve's interest rate policies. Following the recent FOMC interest rate decision, Bitcoin surged over 9% to $67,700, signalling bullish momentum. 

BTC Chart

However, technical indicators suggest caution as Bitcoin approaches key resistance levels. The Relative Strength Index (RSI) indicates overbought conditions, raising concerns of a potential pullback. Traders should monitor support levels around $65,000 and $63,000 for signs of reversal. Additionally, the Moving Average Convergence Divergence (MACD) histogram shows weakening bullish momentum, suggesting a possible consolidation phase before further upside. 

BTC Analysis

Source: TradingView

Overall, while short-term volatility persists, Bitcoin's long-term outlook remains optimistic, supported by institutional interest and market fundamentals.

BTC Total Value Locked

Source: DefiLlama

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