Shapella Upgrade to Have limited Impact on ETH’s Selling Pressure

Despite Bitcoin’s recent decline, a South Korean analyst says investors’ trust in the market remains intact. He added that a U.S. crypto market structure bill, which Congress could approve as early as December, may give investors a chance to buy the dip ahead of a potential rebound. According to Etoday, Hong Sung-wook of NH Investment & Securities, one of South Korea’s major brokerage firms, noted that the crypto market has given back all gains made since mid-October, with Bitcoin briefly slipping below $100,000. Most altcoins also saw steep declines, erasing the advances they posted following roughly $19 billion in liquidations around Oct. 10. In this environment, Solana’s year-to-date performance has turned negative despite the recent launch of spot Solana ETFs in Hong Kong and the U.S., while Ethereum has similarly surrendered its earlier gains.Photo by Michael Förtsch on UnsplashContext from past declinesHong framed the latest pullback in a historical context. Since 2018, Bitcoin has recorded a daily closing price drop of more than 20% on seven occasions. The latest decline of about 21% from peak to trough, he said, is broadly in line with previous downturns. He added that Bitcoin is now less likely to experience the extreme volatility seen in earlier years, citing growing institutional participation and its increasing use in so-called “debasement trades,” or hedges against fiat currency inflation. Building on this, Hong attributed the recent weakness primarily to the liquidation wave and the temporary hit to sentiment. However, he argued that confidence could recover faster than in past stress events, emphasizing that trust in the market has not been fundamentally damaged, unlike in prior downturns triggered by unexpected “black swan” shocks. Policy progress could lift market moodIn the near term, Hong pointed to progress on the U.S. crypto market structure bill as a potential catalyst. Further movement on the bill, he said, could help improve sentiment, similar to the supportive reaction seen around the passage of the stablecoin GENIUS Act. Other market observers have expressed a comparable view on Bitcoin’s outlook. BeInCrypto underscored three key factors supporting its stance in an analysis published on FXStreet. First, citing Glassnode’s Accumulation Trend Score, it noted that Bitcoin has managed to hold above the $100,000 level thanks to a balance between whale sell-offs and continued accumulation by other investors. Second, expectations for U.S. interest rate cuts projected for December are seen as another supportive element. Third, Bitcoin continues to trade above its 50-week moving average (WMA), a technical level that has underpinned the market since BTC moved above it in 2023; even when brief sell-offs have pushed prices below this line, buyers have stepped in to restore it by the weekly close. Warning signs of weakening momentumAt the same time, signals of moderating momentum have emerged. Another BeInCrypto report pointed to CryptoQuant’s Bitcoin Bull Score, an on-chain metric that gauges the asset’s upside potential, which fell to zero on Nov. 6, its lowest level since January 2022, just before the market entered its last major bearish phase. This more cautious tone is reflected in institutional forecasts as well. Crypto financial services firm Galaxy Digital last week lowered its year-end price target for Bitcoin from $185,000 to $120,000. The firm cited heavy whale sell-offs, shifting investor focus toward AI, gold, and stablecoins, and the weak performance of Bitcoin-focused digital asset treasury (DAT) companies as key reasons for its downgrade. Even so, Galaxy Digital said it continues to view Bitcoin as a structurally strong asset.From a longer-term perspective, some high-profile experts have also trimmed their expectations. According to Decrypt, Ark Invest CEO Cathie Wood told CNBC she now sees Bitcoin reaching about $1.2 million in a bullish scenario by 2030, down from her previous $1.5 million target. She attributed the revision mainly to the rapid growth of stablecoins, which are expanding faster than Bitcoin and emerging as a new payment method, a trend she suggested could dilute some of Bitcoin’s potential price momentum over time.

Japanese Bitcoin treasury firm Metaplanet has opened a U.S. subsidiary company in Florida while also issuing 3.6 billion Japanese yen ($24.7 million) in bonds for the purpose of buying more Bitcoin.Photo by Kanchanara on UnsplashAccelerating the Bitcoin strategyIn an announcement on May 1, the company outlined that it had established Metaplanet Treasury Corporation in Miami, Florida. The firm cited the purpose of the subsidiary as a means through which it can accelerate its overriding strategy of accumulating more Bitcoin. Metaplanet CEO Simon Gerovich commented on X on the rationale behind locating the U.S. subsidiary in Florida, stating:”The reason for choosing Florida is clear: the state is rapidly emerging as a global hub for Bitcoin innovation, corporate adoption and financial liberalization.” Gerovich added that the newly formed company will enhance Metaplanet’s “around-the-clock operational capabilities across time zones.” The Metaplanet CEO sees the development as part of the firm’s evolution as a global Bitcoin treasury company.  $250 million capital raiseThe company stated that it had already established a corporate entity in the British Virgin Islands (BVI), with the U.S. addition enhancing the company’s ability “to respond to market dynamics with speed and precision.”  Metaplanet intends to raise $250 million in funding through the Miami-based entity, having launched it with initial capital of $10 million. It’s envisaged that the U.S. subsidiary can act as a vehicle to attract institutional investment.  Back in March it was reported that Metaplanet was investigating the idea of listing its stock in the U.S. At the time, Gerovich stated that the firm was “considering the best way to make Metaplanet shares more accessible to investors around the world.” As part of that process, Gerovich met with officials from the New York Stock Exchange (NYSE) and the Nasdaq.  In further U.S.-related developments, the company appointed Eric Trump, second son of U.S. President Donald Trump, to its strategic board of advisors in March. Last week, Metaplanet appointed David Bailey, CEO of Bitcoin Magazine, to its strategic board of advisors. Bond issuanceIn a separate development, Metaplanet has issued 3.6 billion Japanese yen ($24.7 million) in 0% ordinary bonds to purchase additional Bitcoin. The company used its EVO FUND as the mechanism through which it issued the bonds.  It has set out a goal of accumulating 10,000 BTC by the end of the year. Currently, the company holds 5,000 BTC. One community member believes that Metaplanet could hit this target as early as July on the basis of ongoing share dilution.Appearing on The Bitcoin Treasuries Podcast earlier this year, Metaplanet’s Director of Bitcoin Strategy, Dylan LeClair, described how prior to adopting its Bitcoin treasury strategy in 2024, the firm was a “zombie” on the Tokyo stock exchange with the pandemic having had a negative impact on the company’s fortunes.  He outlined that the company consolidated and dealt with some debt issues, but at that point it lacked a clear strategy. It then set out to replicate the success of U.S. Bitcoin treasury pioneer, Strategy (formerly MicroStrategy). On May 1 Gerovich posted on X that the company had achieved unrealized gains on Bitcoin exceeding six billion yen ($41.68 million). 

Laos to Prioritize Blockchain for Digital TransformationThe Laotian government, under the leadership of Prime Minister Sonexay Siphandone, recently hosted the inaugural Ministerial Conference on Blockchain 4.0 Digital Transformation in Vientiane, the country’s capital. The conference, held on Friday, brought together blockchain experts and leaders from various economic departments in the country, indicating the government’s prioritization of blockchain technology for its digital transformation efforts.Photo by Molydar SOUAMA on UnsplashMetaBank cooperation agreementIn an effort to promote digital transformation within Laos, the Laotian government has signed a cooperation agreement with Singapore’s MetaBank. Software company MetaBank describes itself as a “digital civilization accelerator empowered by blockchain.”A report from MetaBank sheds light on the main focus of the conference. The key objective was to expedite Laos’ digital transformation by harnessing the potential of digital technology. The concept of Blockchain 4.0 was introduced, highlighting the importance of open collaboration and positioning Laos as both a catalyst and a beneficiary of the emerging global digital landscape.In a press release published on Monday, MetaBank Founder and Chairman Frank Sui said that blockchain technology can help developing countries like Laos to “overtake on a bend.” Laotian Minister of Technology, Boveingkham Vongdara, suggested that blockchain technology is needed to transform production and service methods.In line with this vision, MetaBank and the Laotian Ministry of Technology plan to establish a blockchain research and development center that will support the Blockchain 4.0 initiative in Laos. This center will serve as a hub for innovative blockchain projects and contribute to the country’s technological advancements.Leveraging digital technologyThe conference outlined several goals for the development of Laos’ digital economy. These goals include leveraging digital technology to generate new fiscal revenue, strengthen foreign exchange reserves, control inflation, foster sustainable economic growth, improve living standards, and enhance international competitiveness in the short term.Furthermore, the event proposed the establishment of a Blockchain Technology Transformation Committee, which would be responsible for ensuring legal compliance and drafting legislation relevant to the digital economy.During the conference, Prime Minister Siphandone stressed the importance of integrating blockchain technology into various government processes and utilizing it extensively for administrative management and public services. He emphasized that embracing blockchain technology is vital for the successful implementation of Laos’ ninth five-year plan, which aims to drive national, economic, and social development.Laos, situated in Southeast Asia, has recently taken significant strides in adopting blockchain and digital technology. In February, the country’s central bank signed a memorandum of understanding with Japanese financial software firm Soramitsu to launch a proof-of-concept project for a central bank digital currency (CBDC).The project involves the creation of a digital currency called DLak, which will be exchanged with commercial banks for fiat currency and used for real-time transactions through a QR code and an accompanying app. This initiative aims to address the delays previously experienced in digital transactions within Laos, which could take up to a month to clear.With the establishment of this Blockchain 4.0 initiative and the planned research and development center, Laos is positioning itself to make further progress in its digital transformation journey.