BTSE Weekly Digital Asset Report – March 8th

Welcome to this week’s market roundup, where we navigate through the labyrinth of the crypto market’s recent fluctuations. This week was nothing short of a rollercoaster for digital currency enthusiasts, with Bitcoin taking the spotlight for its large fluctuations. During these fluctuations, Bitcoin soared to an impressive high of almost $69,000, only to experience a sharp downturn, dropping to lows of $61K before making a swift recovery back to $67,000 by this Friday morning. This ‘V-shape’ correction has stirred a wave of optimism among analysts, who are now eyeing a potential surge to $76,000. Similarly, Ethereum demonstrated remarkable resilience; after plunging from its peak of $3.8K to $3.3K, it bounced back, achieving weekly highs post-recovery. While Bitcoin took the spotlight this week – as it often has done in recent months – sentiment around Ethereum is no less positive, as Bitwise analysts projecting a bullish run for Ethereum up to $10,000—a figure that may have seemed far-fetched just a year ago when the token was valued at $1.4K, but far less so now—there’s a palpable sense of anticipation for what the future holds. 

• Hong Kong’s Central Bank Launches Wholesale CBDC: This week, the Hong Kong Monetary Authority has initiated Project Ensemble, a wholesale CBDC (central bank digital currency) endeavor aimed at bolstering the tokenization market.

• Tesla and SpaceX’s Bitcoin Holdings: Elon Musk’s companies, Tesla and SpaceX, have been discovered to collectively hold approximately $1.3 billion in Bitcoin, according to a report by Arkham Intelligence. The analysis reveals that Tesla’s and SpaceX’s Bitcoin assets are substantially more than previously estimated.

• UK Treasury Moves Towards OECD Crypto Regulation: The UK Treasury has begun a consultation to adopt the OECD’s crypto asset reporting framework by 2026, targeting tax non-compliance in the crypto market. This move is expected to not only increase revenue but also set a benchmark for global crypto regulation, emphasizing transparency and compliance within the sector.

• Nirvana Cloud for Blockchain Applications: Nirvana Labs introduces Nirvana Cloud, a cloud computing service tailored for blockchain applications, aiming to provide a more efficient alternative to traditional cloud services like AWS and Google Cloud. With $1.7 million in pre-seed funding, Nirvana Cloud boasts clients such as Chainlink and Avalanche. 

• JPMorgan’s Analysis on Bitcoin vs. Gold: JPMorgan analysts have deemed it unrealistic for Bitcoin to match gold in notional amounts within investors’ portfolios. Despite Bitcoin surpassing gold in volatility-adjusted terms, the significant difference in risk levels—Bitcoin being about 3.7 times more volatile—means its notional portfolio allocation would be substantially lower compared to gold.

• Philippine Central Bank Advances Project Agila: The Bangko Sentral ng Pilipinas (BSP) is advancing with Project Agila, a pilot project for a wholesale central bank digital currency (wCBDC) set to complete by year-end, aiming to democratize access to securities with lower fees and smaller issue sizes for everyday Filipinos.