The ‘Everything Rally’: BTC, meme coins, AI tokens ...

Hola folks!

The past week has been volatile for the crypto assets as they reacted to escalating tension between Israel and Iran. Bitcoin tested the $60k mark, finding strong support there. The broader crypto market also witnessed volatility amid the unrest in the Middle East.

However, the US jobs data came in better than expected, boosting the morale of crypto investors. BTC rallied over 3% over the weekend to test the $64 mark. Memecoins also appreciated as talks around a meme coin rally intensified on social media. 

Today’s newsletter talks about how the events of the past week impacted crypto prices and the data points to look out for in the coming week. Additionally, we also have a video explainer on the Hamster Kombat token.

Hamster Kombat’s token HMSTR has been the talk of the crypto town for the past few weeks. Hamster Kombat is a tap-to-earn game, with over 300 million users. The HMSTR token blends meme coins and gaming elements, incorporating community-driven elements into its ecosystem.

The HMSTR token which powers the gaming platform is used for all in-game activities. We at CoinSwitch have produced a video to explain what Hamster Kombat is and how users can buy, sell, and trade in the token on the CoinSwitch App.

Bitcoin (BTC) surged to nearly $64,000 in early Asian hours today, marking a 3% rise ahead of a critical week marked by US economic data. Investors are closely monitoring the release of the Federal Reserve’s FOMC minutes and key indicators from September, including the CPI and PPI, which are expected to provide insights into inflation trends and the overall health of the US economy. 

Amid these positive developments, it's important to note that Bitcoin (BTC) dropped to $60,000 last week as the conflict in the Middle East escalated, pushing oil prices higher. However, the $60,000 level acted as strong support, helping BTC rebound throughout the week. As geopolitical tensions remain high, further escalation could trigger a correction for Bitcoin, which is still considered a risky asset.

In regulatory news, Coinbase announced plans to delist Tether’s USDT by December 30, 2024, in response to the European Union’s new Markets in Crypto-Assets (MiCA) regulations. Tether has yet to secure the necessary e-money license in an EU member state, prompting this move. Coinbase will offer alternatives like Circle’s USDC for users to transition their holdings. Additionally, SWIFT revealed plans to begin digital asset trials in 2025, focusing on transactions involving multiple digital currencies and assets. 

On the Ethereum front, a new Ethereum Improvement Proposal (EIP-7781) aims to reduce block times by 33%, increasing data capacity and throughput by 50%. This comes just days after Vitalik Buterin discussed lowering the minimum stake required to become a validator from 36 ETH to as low as 16 ETH, in a bid to further decentralize the network. 

Meanwhile, NFT sales have rebounded, with the highest weekly volume since August, reaching $84.9 million between September 30 and October 6. 

UAE has announced a VAT exemption for all crypto transactions, retroactive to 2018, adding to the region’s appeal as a global crypto hub. These developments highlight an evolving market, with growing institutional engagement and increasingly clear regulatory frameworks as we approach the year-end.

The Bitcoin rally triggered a market-wide rise, with major tokens like Ethereum (ETH) and Dogecoin (DOGE) up 4%, while the frog-themed meme coin, Pepe (PEPE), surged 14%. Discussions on social media app X about a potential “memecoin supercycle” further fueled these gains, with Solana-based POPCAT and Ethereum-based MOG rising over 12%, and BNB Chain's Simon’s Cat (CAT) up 10%, reflecting growing enthusiasm for riskier assets among traders.

A growing interest in AI tokens led to Bittensor’s TAO led gains among mid-cap tokens with a 14% rise. The broader AI category on CoinGecko climbed 7.5%, with tokens like NEAR and Internet Computer (ICP) also witnessing strong performance as AI continues to attract investor attention.

• DOGE $0.1121 ⏬ 7.49% 

• PEPE $0.00001035 ⏬ 4.92% 

• TAO $623.97 ⏫ 8.69%

• ICP $8.30 ⏬ 10.79%

(All data here is as of 3.20 p.m., 7 October 2024)

Before we conclude, here’s a quick look at some important news from around the crypto world.

• Bitcoin (BTC) neared $64,000 in early Asian hours on Oct.7 ahead of a busy US data week that sees the Federal Reserve release FOMC minutes and key economic figures from August that track the economy’s growth. Read more here. 

• Restaking protocol EigenLayer’s native token (EIGEN) is now transferable and trading at a fully diluted value of $7.16 billion. It will be listed on several centralized exchanges including Binance and MEXC on Oct. 1 at 05.00 UTC. Read more here. 

That’s it for now. Thanks for sticking around.

See you later, folks! 👋

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