● QCP Capital: Cryptocurrency market weakness may rebound due to recovery in US stock market
According to Odaily Planet Daily, QCP Capital published an analysis that due to the strong correlation between cryptocurrencies and US stocks, the market weakness is temporary. As the US stock market recovers, cryptocurrencies may recover with it.
This correlation highlights that macroeconomic factors are the main drivers of risk asset prices. With the ADP employment report beating expectations, the nonfarm payrolls report will be key in confirming the strength of the U.S. labor market. The combination of expected rate cuts and labor force strength could boost risk assets.
While tensions in the Middle East have impacted what has been a historically strong month for Bitcoin, the decline is temporary and anticipates an “October up” rally to prevail.
● Standard Chartered Bank recommends investors to buy BTC on dips
According to BlockBeats, on October 4, Geoff Kendrick, global head of digital asset research at Standard Chartered Bank, said that gold is a geopolitical hedging tool and BTC is not a safe haven against geopolitical risks. However, he pointed out that BTC can hedge against TradFi issues such as bank failures or de-dollarization and U.S. Treasury problems. Therefore, it is still recommended that investors should buy on dips.
According to Jinshi, a survey released on Thursday showed that U.S. service sector activity grew faster than expected last month, indicating increased demand in the industry. The U.S. ISM non-manufacturing PMI for September was 54.9, far higher than market expectations and breaking the 50 mark for the third consecutive month. The new orders index jumped more than 6 points, indicating healthy demand for the service sector.
In contrast, the employment index fell slightly, indicating some weakness in the industry's job market. Steve Miller, chairman of the ISM Services Survey Committee, said supply pricing remains an issue as the supply chain continues to stabilize. Miller also said the Federal Reserve's September rate cut was welcomed by the service industry, but labor costs and availability remain an issue.
● Initial jobless claims in the U.S. reached 225,000 in the week ending September 28
According to Odaily Planet Daily, the number of initial unemployment claims in the United States for the week ending September 28 was 225,000, with an expected number of 220,000 and a previous value revised from 218,000 to 219,000. The four-week average of initial unemployment claims in the United States for the week ending September 28 was 224,250, with a previous value revised from 224,750 to 225,000. The number of continuing unemployment claims in the United States for the week ending September 21 was 1.826 million, with an expected number of 1.832 million and a previous value revised from 1.834 million to 1.827 million.
According to Odaily Planet Daily, the Taiwan Financial Supervisory Commission announced that it has developed a draft of the Anti-Money Laundering Registration Regulations for Enterprises or Personnel Providing Virtual Asset Services (VASP Registration Regulations), and also revised the Anti-Money Laundering and Combating Terrorism Financing Regulations for Virtual Currency Platforms and Trading Business Enterprises (VASP Anti-Money Laundering Regulations).
Huang Houming, deputy director of the Securities and Futures Bureau of the Financial Supervisory Commission, said that the draft registration method is expected to be completed by the end of the year. Operators must complete the registration within 9 months. Violators may be sentenced to up to 2 years in prison or a fine of up to 5 million. Currently, the Taiwan Virtual Asset Association has 24 members, 2 of which are in the process of applying, and 26 have completed the anti-money laundering registration. The Anti-Money Laundering Act adds a VASP registration system, definition, and criminal liability for illegal operators. Differentiated management is adopted in the sub-laws to strengthen management, which will be completed by the end of the year.
● CFTC may approve digital assets as trading collateral by the end of the year
The U.S. Commodity Futures Trading Commission (CFTC) may approve digital assets as trading collateral by the end of the year, Cointelegraph reported.
A subcommittee of the CFTC’s Global Markets Advisory Committee recently voted to recommend allowing digital ledger technology (DLT)-based collateral for commodities and derivatives trading, Bloomberg reported.
If the proposal is accepted by the CFTC, traders can use digital assets as collateral to settle trades as quickly and easily as other blockchain-based transactions. Brokers can accept blockchain-tokenized assets, such as BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) tokens, through market-embedded systems. Currently, blockchain assets as collateral are already common among large companies such as BlackRock and JP Morgan. CFTC approval could drive mainstream adoption.
● Binance Labs announces investment in ZKsync’s “elastic chain” Sophon
Binance Labs announced an investment in ZKsync's "elastic chain" Sophon. The specific amount has not been disclosed yet. It is reported that Sophon uses Matter Labs' modular open source framework to build a second-layer network. The mainnet will be launched next month and the token will be deployed soon. It is reported that Sophon's total financing amount has exceeded US$70 million so far.
“Binance Labs is committed to supporting early-stage projects that push the boundaries of Web3 and foster growth in the ecosystem,” said Andy Chang, Investment Director of Binance Labs. “Sophon’s strong industry partnerships and early success demonstrate their great potential to revolutionize the entertainment, gaming, and AI sectors.”
● Grayscale plans to launch AAVE Trust Fund
According to Odaily Planet Daily, according to market news, Grayscale plans to launch the AAVE Trust Fund Grayscale Aave Trust. Rayhaneh Sharif-Askary, head of product and research at Grayscale, said that the product allows investors to access a protocol that has the potential to change traditional finance.
