Base, ARK Invest, and Inflation – Top 3 Crypto Industry Topics This Week
Date: 2023-08-10 Author: Karina Ziganova Categories: BLOCKCHAIN
Launch of Base Blockchain, Approval of ARK Invest Bitcoin ETF Application, and Publication of US Inflation Data
Base Blockchain Launch – August 9
The full-scale launch of the sensational Base blockchain is scheduled for August 9th.
Base is a new development of the Coinbase crypto exchange. This is its own sidechain, or second-level network (L2 solution) based on Ethereum using Optimism technology. Base will be an open ecosystem where everyone can create their own products.
Base integrates with Coinbase products and services, and will simplify access to the cryptocurrency market for millions of users. That's what the developers think.
If successfully launched, Base will become the largest second-tier blockchain in terms of the number of users and trading volume. This is the reason for the hype around the new Coinbase product. Last week, the crypto market was actively discussing the BALD token, which was launched on Base, despite the fact that the blockchain is still working in test mode.
Decision on the ARK Invest application for bitcoin-ETF - until August 13
The U.S. Securities and Exchange Commission (SEC) will make a decision on an application for a bitcoin ETF from Cathy Wood's hedge fund ARK Invest this week.
The company submitted the request on May 15, 2023 and made changes on June 28. From that day began the report of 45 days allotted for the Commission to make a decision. It expires on August 13, 2023, which means that the regulator will decide before this date. He has three options: approve, reject, or delay the decision until January 10, 2024.
Next week we will see another series of bitcoin ETF dates from Wisdomtree, VanEck, Invesco and Valkyrie. But, most likely, these decisions will be postponed to a later date.
An ETF is an Exchange Traded Fund that tracks the value of an underlying asset. In the case of a spot bitcoin ETF, this asset is BTC. The successful launch of any of these products could be a good signal for the crypto industry. Read more about what Bitcoin-ETF is in our article.
US Inflation Data Release — August 10 and 11
On August 10, statistics on consumer inflation in the US will be released.
To assess price dynamics, the CPI, or consumer price index, will be used - the main indicator of inflation for the US economy. It takes into account the products that consumers use on a daily basis and compares their prices from year to year. July core CPI is expected to fall to 4.7% y/y from 4.8% y/y a month earlier. This is a positive signal as it is believed that the higher the US CPI, the greater the pressure on the price of BTC.
This statistic directly affects the US stock market. And although this year we have observed a correlation between the crypto market and the stock and bond market, the publication of CPI data can still affect the dynamics of digital assets. It is assumed that the effect will be short-term, but could provoke a surge in volatility.
