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Gate.io Blog Daily News | Asia Stocks Calm Amid US Futures Drop, BTC Rally, Hong Kong to Open Retail Trading Amid Growing China Narrative Play

Daily News | Asia Stocks Calm Amid US Futures Drop, BTC Rally, Hong Kong to Open Retail Trading Amid Growing China Narrative Play

21 February 09:48

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![](https://gimg2.gateimg.com/blog/166563293266894988220221013-114826.jpeg)

## Crypto Daily Digest: Asia Stocks Calm Despite Gloomy US Futures & <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> Rally, Hong Kong Proposes Crypto Rule Changes

Good morning, traders! It’s going to be yet another fantastic day. Let's seize this Tuesday and make the most of it! 🚀

Asian stocks remained calm at the start of Tuesday as US equity futures decreased, signaling a potential need for central banks to tighten policy to control inflation. Australian shares saw a decline, as did futures for Japan, while contracts for the S&P 500 also decreased, indicating further downward pressure on US stocks. The dollar remained unchanged, and Treasury futures saw a slight decline. Investors were paying attention to mainland China stocks after the CSI 300 benchmark recorded its highest one-day gain since November. Investors were also waiting for retail earnings reports from Walmart Inc. and Home Depot Inc. to gauge US consumer demand. The price of oil increased due to the expectation that China's reopening will prompt activity.

Despite negative news in the cryptocurrency market, <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> gained 15% since February 13th. This is because weak economic data suggests the US Federal Reserve has less room to raise interest rates. The <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> futures premium has exceeded the neutral threshold, indicating a return to neutral-to-bullish sentiment, and limited regulatory impact is a positive sign. Both retail and professional traders are confident, suggesting a continuation of the rally.

Meanwhile, the Hong Kong regulator proposed changes to rules that currently prevent retail investors from purchasing crypto tokens on licensed platforms. The proposal would require all crypto trading platforms operating in Hong Kong to be approved by the Securities and Futures Commission or cease their operations. The move aligns with the government's desire to establish Hong Kong as a financial center for digital assets. In addition, the regulator suggested that only the largest tokens would be available for retail traders, and asked exchanges to provide details on the crypto derivative products they want to offer and their reasons for doing so.

These measures could help regulate the crypto market in Hong Kong, but could also limit retail investors access to certain types of digital assets. Overall, it remains to be seen how these proposed changes will affect the crypto market in Hong Kong and whether they will lead to increased adoption of digital assets by retail investors.

## Topic of the Day: Rise of Conflux Network Fuels Interest in Crypto Industry, Boosted by High-Profile Collaborations

Conflux Network (CFX) has experienced a massive surge of nearly 500% in the past week, making it one of the best-performing cryptocurrency assets of the year. This increase can be attributed to China's growing interest in trading cryptocurrencies, and it is likely to encourage more investors and traders in China to explore new opportunities in the market, which could have a positive impact on other cryptocurrencies and blockchain projects.

Conflux Network is a unique blockchain that is both public and permissionless while being regulatory-compliant, operating on a hybrid proof-of-work and proof-of-stake mechanism, which provides an efficient and secure system for its users. This could help bridge the gap between the crypto industry and mainstream businesses, increasing adoption and investment in the industry.

One of the driving forces behind the recent surge in CFX's price is its partnership with Little Red Book, a China-based social media platform with over 200 million users. The collaboration allows Conflux Network to offer non-fungible token services to Little Red Book's users. Similarly, the partnership with China Telecom has given Conflux Network exposure to Hong Kong's 350 million users by developing and piloting a blockchain SIM card service.

The buzz surrounding these high-profile collaborations has also fueled retail interest, as evidenced by the increased worldwide Google Trend score for the keyword "Conflux Network." This highlights the importance of marketing and brand awareness in the crypto industry. While technical factors such as the hybrid proof-of-work and proof-of-stake mechanism are crucial, marketing efforts can also play a significant role in driving adoption and investment in the industry.

The CFX market bull run comes ahead of the token burn proposal vote, which could have a significant impact on the cryptocurrency's future. While it is uncertain what the outcome of the vote will be, the increased interest in Conflux Network has shown that there is a growing appetite for innovative blockchain projects and collaborations that bridge the gap between the crypto industry and mainstream businesses.

## Conflux (CFX) $0.34288 (+5.47%) - Neutral Outlook

**Overview:**

- ***Closest daily support zone: 0.31150 - 0.29710***
- ***Closest daily resistance zone: 0.34000 - 0.41700***
- ***Key Level: 0.25000 (Monthly High of Jan. 2021)***

![](https://gimg2.gateimg.com/image/article/1676946029Untitled0221.png)

CFX has risen around 1440% since the beginning of January. Of the ascent, three legs can be spotted, particularly the third leg which began only a week ago, fueled by the so-called “China Narrative” that’s been trending on Twitter since the beginning of February. The third leg, which has boosted CFX with a whopping 530% in value, appears to remain strong in momentum as of this writing. However, not only does RSI indicates strong overbought sentiment, but the price action has also reached a previous golden zone situated between 0.33325 - 0.41710, which is also the weekly high of Nov. 16 - 23, 2020. Going forward, momentum will likely begin to weaken as buyers begin to fear buying in at a too-high-a-cost, implying a pullback is imminent. As for the potential support zone/demand zone for which the pullback may see rejections, the current golden zone based on the third leg (0.22100 - 0.17485) seems to be a likely target, although this is subject to reevaluation depending on where price action will be by the end of this week.

**Weekly Resistance zones**

1. 0.34000 - 0.41700
2. 0.51100 - 0.59940
3. 0.75020 - 0.85330

<br>
 **Weekly Support zones**

1. 0.31150 - 0.29710
2. 0.25000 - 0.22100
3. 0.18600 - 0.15020

<div class="blog-details-info">
<div>Author:** Peter L.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

ETH/USDT + 6.34%

BTC/USDT + 1.51%

CFX/USDT + 4.25%

GT/USDT + 3.08%

Crypto Daily Digest

Topic of the Day: Rise of Conflux Network Fuels Interest in Crypto Industry, Boosted by High-Profile Collaborations

Neutral Outlook

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