Expectations for End to War Boost Risk Asset Sentiment
Bitcoin (BTC) reclaims the 70,000 USD mark as the U.S. proposes a ceasefire with Iran.
As of 9:08 a.m. on Wednesday, Bitcoin was trading at 106.5 million KRW (approximately 70,670 USD) on Bithumb, up 0.94% from the same time the previous day.
Simultaneously, CoinMarketCap reported the global Bitcoin price at 70,610 USD, down 0.44% from the day before.
Earlier that morning, Bitcoin briefly dipped to around 68,000 USD before rebounding above the 70,000 USD threshold.
The rebound in risk asset sentiment is attributed to growing hopes for an end to hostilities, sparked by the U.S. proposal for a month-long ceasefire with Iran.
The New York Times reported on Tuesday that the Donald Trump administration had presented Iran with a proposal for a month-long ceasefire, along with 15 key demands.
These demands include dismantling nuclear capabilities, pledging not to possess nuclear weapons, halting nuclear material enrichment, transferring enriched materials to the International Atomic Energy Agency (IAEA), decommissioning nuclear facilities at Natanz, Isfahan, and Fordow, granting the IAEA full access to nuclear information, ceasing funding and arms support to Middle Eastern proxies, ensuring free navigation in the Strait of Hormuz, and restricting missile quantities and ranges.
In return, the U.S. offered to lift all sanctions against Iran, support civilian nuclear power in the Bushehr region, and remove the threat of snapback sanctions, which would allow for immediate reinstatement of sanctions if violated.
However, Iran’s acceptance of this proposal remains uncertain.
Active ETPs Set to Become Key Investment Products in Crypto Market
Analysts predict that active products will emerge as crucial investment vehicles in the virtual asset exchange-traded product (ETP) market.
In a recent interview reported by CoinIntel Corporation on Tuesday, 21Shares Chief Executive Officer (CEO) Duncan Moir stated that virtual assets are still in their early growth stages, making active management strategies more suitable than passive products that simply track prices.
Moir explained that as the market matures, investors will increasingly turn to active ETPs to maximize returns.
Unlike passive strategies that mirror specific assets, active ETPs involve experts selecting assets and adjusting weightings to pursue higher returns.
Lombard Launches Bitcoin-Backed Loans for Institutional Investors
Bitcoin financial infrastructure firm Lombard has partnered with cryptocurrency exchange Bitwise to offer Bitcoin-collateralized loans to institutional investors.
CoinIntel Corporation reported on Tuesday that the two companies have introduced a service allowing institutions to generate income from Bitcoin holdings while also securing loans, without transferring their assets.
Bitwise is developing a revenue strategy combining decentralized finance (DeFi) lending with real-world assets (RWA), with the DeFi project Morpho managing the lending infrastructure.
CFTC Establishes Dedicated Virtual Asset Task Force
The U.S. Commodity Futures Trading Commission (CFTC) has launched a task force to support innovation in the virtual asset industry.
On Tuesday, international media reported that CFTC Chairman Michael Selick announced the formation of an Innovation Task Force to develop regulations for virtual assets.
The task force will focus on creating regulations for virtual assets, blockchain technology, artificial intelligence (AI), and prediction markets, with a particular emphasis on the derivatives market.
Industry observers see this as an attempt by U.S. authorities to balance innovation with the establishment of market order.
