Hong Kong rule change cheering crypto markets

ANOTHER strong week in the crypto markets, as investors continue to gain confidence after the maelstrom of bad news that accompanied the end of 2022.

The price of Bitcoin spiked above $25k for the first time since last June, though a failure to make a convincing move higher has since seen a pullback to below $24k. The flagship cryptocurrency was changing hands for around $23,700 yesterday, up five per cent over the last seven days.

The crypto rally has been primarily driven by Bitcoin’s strength, with second- largest cryptocurrency by total value Ethereum lagging behind. This is considered a healthy signal from the market by analysts.

One of the standout performers this week has been Filecoin, which is up almost 50 per cent over the past seven days. Analysts suggest the hype around the launch of Filecoin’s FVM - anticipated to go live in March – is the reason. The Filecoin Virtual Machine (FVM) is a runtime environment for smart contracts on the Filecoin network, which should enable user programmability.

The past week generally has seen a growing narrative of Asian flows leading the market strength. This has erupted following signals of more positive crypto regulations in Hong Kong. Hong Kong has proposed a relaxation of rules banning retail investors from buying crypto from licensed platforms. Regulators are proposing that investors are allowed to buy large-cap cryptocurrencies. The latest is in line with officials aiming to position Hong Kong as a financial centre for digital assets. This narrative is not isolated to recent positive regulatory news though, with Bitcoin seeing a healthy and stable uptrend during Asian hours since the November Bitcoin bottom with no notable downside days.

It’s a different story during US trading hours, which have been more erratic. Will that need to change to see a more significant spike in the crypto markets?

Keanu Reeves Backing Digital Assets

MATRIX star Keanu Reeves has said he believes in crypto, branding the principles underpinning it as ‘amazing’. Discussing cryptocurrency, metaverse and NFTs as part of an extended interview for the upcoming John Wick 4 film, the 58-year-old Canadian was full of enthusiasm for decentralised finance.

“I think the principle, the ideas behind an independent currency, are amazing,” he said.

“These are amazing tools for exchanges and distribution of resources. So to pooh-pooh crypto, or the volatility of cryptocurrency, it’s only going to make it better in terms of how it’s safeguarded.”

Alchemy Showing The Right Chemistry

IN A week when rising crypto values have shuddered to a halt, Ethereum token Alchemy Pay (ACH) has caught the eye of analysts as it furiously swims against the tide.

The $212m market cap altcoin posted a 24hour rise of 12 per cent last night, adding to an astonishing weekly and monthly uplift of 145 per cent and 280 per cent respectively.