Marcus Sotiriou, Analyst at the UK based digital asset broker GlobalBlock
Bitcoin (CRYPTO: BTC) consolidates above $47,000 as market sentiment has turned very bullish over the past week. On-chain metrics are suggesting continuation of the rally, as Glassnode shows how over 60% of Bitcoin’s supply has not moved in a year. The only other time the percentage of Bitcoin’s supply hadn't moved in over a year was September 2020, which lead to a 500% move in price over the following 8 months. Furthermore, a report from Coinshares yesterday shows that we are seeing the largest inflows to crypto funds since December. After two straight weeks of outflows, there were $193 million in inflows last week, with $147 million in inflows for European funds and $45 million in inflows for American funds. Inflows for Solana-focused funds hit record highs at $87 million as the (CRYPTO: SOL) has increased by 40% over the past 2 weeks.
Positive crypto regulation continues to develop as Vietnam is creating a legal framework for cryptocurrency. In addition, according to CNBC, the U.K. government will soon reveal plans to regulate the cryptocurrency market, whilst focusing on stablecoins.
The report claimed that British Finance Minister Rishi Sunak is expected to make an announcement in the coming weeks about a new regulatory regime for crypto, and that new rules are likely to be favourable to the industry. Due to the uncertainty from the FCA on their crypto stance, this legal clarity should be a significant milestone for crypto in the UK. A poll by StarkWare Industries shows that a fifth of adults in Britain are investing in crypto, showing how important regulatory clarity will be.
