Despite volatility, the Nasdaq Crypto IndexTM (NCITM) rose by 6.8%, closing April—its fourth green month in a row—up 4.5%. Bitcoin (BTC) outperformed ether (ETH) with a gain of 8.0% against ETH’s 4.1%. In the past decade, four-month winning streaks for BTC have foreshadowed an average surge of 260% over the subsequent year, according to Bloomberg. The news of First Republic Bank's struggles, lower-than-expected GDP numbers, and cooling PCE numbers led the market to bet on a US rate-hike pause after this week’s FOMC meeting, where the Fed is expected to raise rates 25 bps. This scenario should be positive for risk assets, including crypto.
Venmo to offer fiat-to-crypto payments this month
Venmo announced it will allow crypto transfers within Venmo, PayPal, and to external wallets and exchanges beginning in May. The company has over 90 million US accounts so this development helps strengthen crypto’s use case as payment tool.
Franklin Templeton expands its money market fund on Polygon
Franklin Templeton, a $1.4 trillion asset management giant, has expanded its money market fund on Polygon, a scaling solution for Ethereum. This will bring more liquidity to Polygon's decentralized finance (DeFi) ecosystem and demonstrates institutional adoption and confidence in DeFi solutions.
Google adds Web3 features to cloud offerings
Google Cloud has announced the integration of Web3 features into its cloud offerings for start-ups, allowing developers to create and deploy decentralized applications (dApps) more easily. This integration is expected to reduce the complexity of building dApps for Web3 start-ups, making the ecosystem more accessible to developers.
Visa shares plans for ‘ambitious’ crypto product
Visa has shared plans for a payment product that will allow businesses to settle transactions in stablecoins. The product aims to provide a faster, cheaper, and more transparent alternative to traditional payment systems and demonstrates growing mainstream acceptance of stablecoins and other crypto assets as a means of payment.
Tokenization is the 'Killer App' for TradFi: JPMorgan
JPMorgan has identified tokenization as the "killer app" for traditional finance (TradFi), stating that it has the potential to transform asset classes like real estate and art into digital assets. The bank is reportedly working on several related projects, including tokenizing gold bars and creating a blockchain-based trading platform for private companies. TradFi institutions continue to recognize the disruptive potential of blockchain technology and crypto assets.
Coinbase sent the SEC a 50+ page response to the agency’s Wells notice, concluding that the agency’s case against the company “will fail as a matter of fact and law.” CEO Brian Armstrong released a video stating that the company is willing to go to court if necessary.
What to watch this week:
All eyes will be on the FOMC meeting, expected to produce a 25 bps hike, as well as the release of key economic data such as ISM business activity indicators and official employment statistics. These announcements will inform the ongoing debate over whether or not a recession is imminent.
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