This week we take a look at the recent BTC break out, crypto regulation and continue to delve into how AI may impact the market. Also this week we have one of our new team members Blockdot dropping some high level insight on the regulatory outlook.
Market insights this week:
Bitcoin has surged nearly 50% in the first seven weeks of this year, reaching a six-month high of $24,900, thanks to external factors such as positive sentiment in traditional markets. Despite concerns from the Federal Reserve a tightening SEC and rising Treasury yields, the crypto market and Nasdaq have remained resilient. Certain analysts are optimistic about Bitcoin's future, with William Noble, former analyst at Goldman Sachs and Morgan Stanley, potentially expecting the crypto market to double in value in the coming months due to its breakout from a long-term base formation. From our perspective identifying as a bull or a bear is wholly unhelpful, what it is really about is trying to see based on price action what is most likely to happen positioning yourself properly or creating a strategy to optimize your gains. As an investor the current discount on many tokens and coins looks attractive. As a trader the surges in BTC and altcoins makes for some nice gains, which we have seen in our discord community. As a degen the fun may be creeping back into the market as meme coins and smaller projects launch from the depths of the bear.
As we peer into the world of AI we can see Bedrock founder Geoff Lewis suggesting that artificial intelligence (AI) is currently experiencing a wave of investor hype similar to the cryptocurrency bull run in 2017. He thinks that while some AI innovations will be long-lasting, the biggest beneficiaries will be limited to large corporations such as Microsoft and Alphabet, who are better equipped to integrate AI into their products. Microsoft has invested heavily in OpenAI and revamped its Bing search engine using ChatGPT-like technology, making it a bigger threat to Google's search market. The hype around AI has been driven by the success of OpenAI's ChatGPT and Google's recent announcement of its chatbot, Bard AI. The world of AI is moving at breakneck pace and here at The G Code we will be sure to keep you up to date with how it is affecting us in the world of crypto .
As the market grows crypto assets are going to be heavily scrutinised in 2023 by regulating bodies, particularly the US Securities and Exchange Commission (SEC). Like regulated markets, their objective is to protect investors from fraudulent, fake or deceptive assets by having them comply with a registration process. It is reasonably clear that the SEC will examine whether crypto companies meet appropriate standards of care when providing investment advice, vehicles or making recommendations and referrals. This is to ensure investors are provided with relevant and adequate information (like a product disclosure statement) so they can make informed investment decisions. Crypto exchanges in major market jurisdictions (US, Europe, Australia, South Korea, Japan and many others) will need to comply with Anti-Money Laundering (AML) and Counter Terrorism (CT) requirements like obligatory reporting of suspicious or large transactions and Know-Your-Customer (KYC). Crypto is still an ambiguous asset class for regulators, this will create a lot of FUD as things develop but in the long term we see further regulation as bullish for the sector. Evolving definitions of cryptocurrencies, products and services will take time for any definitive legislation which is why this year will set the roadmap for the crypto industry.
Two DeFi projects we are keeping tabs on this week:
OKB: The price of OKB, the native cryptocurrency of OKX, has experienced a bullish momentum since the beginning of 2023, largely thanks to Bitcoin gaining more support. OKB is currently attempting to break the $50 zone. The cryptocurrency has significant underlying value due to its connection with one of the largest cryptocurrency exchanges in the world, arguably making it a relatively solid project in comparison to other tokens and coins in the market.
AGIX: The price of AGIX, a utility token offered by SingularityNET, has surged by 1,285% over the past 37 days, hitting an all-time high of $0.67 on February 8. However, the price has since fallen by 37.61% due to a bearish split in the RSI, which suggests that the market may see further decline. SingularityNET aims to create a decentralized marketplace for AI crypto technology, allowing people to buy and sell AI applications on an open network. AGIX is used to purchase and sell AI applications on the market, provide liquidity through staking, and offer governance and token airdrops to its holders. While the price of AGIX may continue to be volatile, its underlying value and SingularityNET's ambitious goals could make it an attractive project or trading opportunity for those wanting exposure to AI and crypto.
Peeps new and old in our trading community this week have been killing it!
Our resident whale and first ever member Eddy making day trading look easy:
And one of our newer members MrCycling rolling some very nice trades:
