Gate.ioBlogMarket Trend｜Ethereum Rallies By 19%, Dogecoin Spikes As Elon Musk Moves To Seal Twitter Deal
Market Trend｜Ethereum Rallies By 19%, Dogecoin Spikes As Elon Musk Moves To Seal Twitter Deal
28 October 15:00
After weeks of a decimating bear market that has plunged the international macroeconomic stage into a state of jeopardy, the cryptocurrency market finally appears to be rebounding from the tumultuous bearish spiral that has affected every asset. In this dramatic period of recovery, Ethereum has witnessed a 19% valuation growth across the past seven days, leading it to firmly grasp onto the $1,500 threshold and reach highs such as $1,584.05. This bullish sentiment has also extended to a range of other assets, including the market’s favourite meme coin - DOGE. With Elon Musk’s supposed Twitter acquisition intensifying by the day as he moves to close the deal, DOGE has rallied by 13% in a dramatic uptick overnight as Musk teased more information on the deal.
However, moving away from macro data and onto the institutional side, Coinbase CEO, Brian Armstrong, has confirmed his opinions on the role of regulation within the decentralised finance space. Believing that DeFi should be protected from regulatory overreach, Armstrong has also positively acknowledged initiatives of various American politicians to seek regulatory clarity on the decentralised finance space, providing that this clarity does not infringe on the decentralisation of the space at large.
Across the coming week, it can be ascertained that this bullish momentum will ensue, providing some leverage to the cryptocurrency market whilst other markets continue to plunge in light of global macroeconomic factors. It is likely that Ethereum may continue to grow its momentum and further rally and establish a new support zone.
Similarly, as Elon Musk moves to close the deal with Twitter, it is likely that DOGE will continue to rally, particularly if the deal is resolved in the immediate future. Additionally, Brian Armstrong’s statements regarding the future of regulation in the DeFi space may spark a further discussion within the wider cryptocurrency community regarding the role of regulation in the future of decentralised finance.
Ethereum Rallies By 19%
Having spent the weeks following the merge progressively shedding value as whales orchestrated a mass sell-off and the fear and greed index confirmed the market was in a state of ‘extreme fear’, it appears that Ethereum’s decimating bearish spiral has ceased following a hasty uptick in value. In a week alonee, Ethereum has risen by 19% and witnessed tremendous increases in volume.
Ethereum has now been shown to be trading above its 100-hour-moving-average amidst the formation of a major contracting triangle with resistance near $1,560 shown on an hourly chart of ETH/USD. This signals that the pair could rally once again providing that there is a clear move above $1,560 and $1,580.
Providing this momentum continues, Ethereum could be entering bullish territory once again and be fighting its away towards the $2,000 threshold.
Dogecoin Spikes As Elon Musk Moves To Seal Twitter Deal
The infamous self proclaimed ‘Doge Father’, Elon Musk, has spent months pursuing the acquisition of Twitter, which has led to a tempestuous ‘will-they-won’t-they’ business relationship. However, after Twitter knuckled down on Musk’s promises and Musk visited the Twitter headquarters permanently, it seems that the pair may finally be near the close of the business deal. To further consolidate this, Musk has publicly stated that he intends to conclude the deal by the coming Friday.
After posting a tweet confirming his visit to the Twitter headquarters, Musk ignited a frenzy within the Dogecoin community, leading the coin to see an impressive rally of 13% across 24 hours. This comes in light of Musk’s teasing via tweets that a new feature titled ‘Twitter Blue’ (a $3 monthly sub_script_ion service) could grant authentication check marks to those who purchase the sub_script_ion, but that it may potentially be payable in DOGE.
This has spurred discussion within the Dogecoin community regarding the potential for increased DOGE adoption if Musk acquired the platform. However, until the deal is sealed and Musk unveils his official plans for the platform, the future of Dogecoin adoption remains speculative.
Coinbase CEO Believes That DeFi Should Be Protected From Regulatory Overreach
It is undeniable, American regulation of cryptocurrencies is drastically intensifying. Whether it be through general discussion or through intensifying crackdowns on the likes of Ethereum and Ripple, the state of cryptocurrencies and decentralised finance in the USA and the Western world remains uncertain.
In a public acknowledgement of the former, current Coinbase CEO, Brian Armstrong, has voiced his positive opinions regarding both Democrat and Republican politicians who are striving towards regulatory clarity for decentralised finance. These US senators and politicians have been pushing towards the creation of legislation that would empower the Commodity Futures Trading Commision (CFTC) to regulate the crypto spot markets through the implementation of a new asset class — ‘digital commodities’. However, Armstrong has also expressed that he believes decentralised finance should be free from ‘regulatory overreach’ as a means of maintaining the decentralised ethos of this burgeoning financial world.
Armstrong stated that sensible crypto regulation was a national security issue as it provides protection to investors and it provides an even playing field for protocols seeking to provide efficient and beneficial financial products and not conduct illicit activities. Armstrong stated: ‘The US missed on semiconductors and 5G which is now largely manufactured offshore. It can’t afford to have cryptocurrency go offshore as well (same for every country, by the way).’.
With more big names in the crypto industry coming forward to express their support for sensible and proactive regulatory clarity that still preserves a semblance of decentralisation within this financial market, it could spell out a hopeful and promising future for cryptocurrencies at large.
Author: Gate.io Researcher: Matthew Webster-Dowsing
* This article represents only the views of the researcher and does not constitute any investment suggestions.
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