UAE expands share of global crypto market

The United Arab Emirates saw a 400 percent growth in the number of registered crypto companies between 2020 and 2022, leading to a surge in global digital asset trading, accounting for 10 percent of global volume, research shows .

Recent statistical data on cryptocurrency adoption in the Mena region indicates that it is home to the fastest growing cryptocurrency industry, accounting for a 9.2 percent share of global transactions in the period from 2021 to 2022. Furthermore, the region saw a 300 percent increase. in blockchain-related educational programs and accounts for up to 8 percent of all mining hash rates.

Based on these trends, Bitget, a major crypto exchange, plans to rapidly scale its Middle East team to support business growth, with 60 new hires over the next 2+ years across the Middle East region. The new team members will include various middle and administrative roles. “As of now, Dubai is an operational hub for the Middle East market. “This movement is not just about business, it is about our core values, which are based on advancing blockchain and cryptocurrency adoption around the world,” Bitget CEO Gracy Chen told Khaleej Times in an interview. .

Bitget opened an office in Turkey earlier this year and currently offers fully localized services through its online trading platform. On November 23 last year, Bitget introduced Arabic support for cryptocurrency trading in Middle East and North African countries. “Furthermore, in response to the growing demand for online commerce platforms in the target markets of the Middle East, the company has already begun the process of applying for licenses. Obtaining the necessary regulatory approvals and licenses is a priority to establish regional offices in these markets,” Chen said.

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With Bitcoin trading at record highs, what is the outlook for cryptocurrencies this year?

The BTC halving significantly affects the supply and demand dynamics of BTC. With the approval of the BTC Spot ETF by the US Securities and Exchange Commission, the demand for BTC will increase substantially. It is anticipated that the April 2024 BTC halving market could support a price rally sooner than previous halving cycles, which could play a larger role in supporting bullish price movements. of BTC.

Throughout 2024, it is essential to monitor any potential changes in US policy and the timing of such changes. With worsening expectations for the US economy, there is market analysis suggesting a high probability that the Federal Reserve will initiate a rate cut, along with a decline in the 10-year Treasury yield, which bodes well. for risk assets in general. The market capitalization of stablecoins has seen steady growth for more than a month. It is important to note that changes in the market capitalization of stablecoins usually lag behind market trends. If this stablecoin market capitalization growth trend continues, it indicates a temporary absence of a change in the market.

How has Web3 commerce developed over the past year and how do you think it will develop this year?

The concentrated call for a Bitcoin ETF led by BlackRock is the most significant narrative of 2023.

Bitcoin spot ETFs can reduce investment costs, increase liquidity, improve price tracking efficiency, and meet stricter regulatory requirements, expanding the accessibility and acceptance of Bitcoin. Especially for retail and institutional investors, spot Bitcoin ETFs provide a more convenient and direct investment channel.

The influx of substantial new funds into the cryptocurrency market will surely increase the total market value of the cryptocurrency world. With such expectations, the confidence of both institutions and retail investors has been greatly strengthened.

In 2024, there will be six market catalysts for positive developments:

The SEC approval of the Bitcoin spot ETF is expected to be followed by the Ethereum Cancun upgrade, which is scheduled for the first quarter, during which the Ethereum and L2 ecosystems will further unleash their potential. ZK L2 projects are expected to see a boom in token issuance.

USDC stablecoin issuer Circle is preparing for its initial public offering (IPO), potentially in the first half of 2024. This move is expected to support the adoption of crypto stablecoins.

Bitcoin will halve in 155 days, increasing Bitcoin scarcity.

The FTX case is gradually entering its final stages, facing a restructuring. As regulatory clarity emerges, it is expected to attract new retail funds.

The US interest rate hike cycle is coming to an end and the market is forecasting the first rate cut as early as May 2024. Under this momentum, positive sentiments in the cryptocurrency markets are expected to strengthen, increasing the appeal of Bitcoin.

What will likely be the impact of the Bitcoin ETF approval on the Middle East market?

Looking back at the impact of gold ETFs on the market, the first gold-backed ETF to be launched in the United States was the SPDR Gold Trust, which debuted on the New York Stock Exchange on November 18, 2004, with a gold closing price of $444.3 per dollar. ounce that day. As other institutions gained access to gold exposure through ETF purchases, the influx of funds caused a steady rise in the spot price of gold, reaching $1,666 per ounce in 2012. As the ETF was approved Bitcoin, if these financial giants want to invest in BTC with a risk exposure similar to that of gold, they would need to invest approximately 30 to 40 billion dollars.

Financial institutions from other regions are expected to apply for similar deals in the United States. To prevent large and medium-sized financial institutions from moving their funds out of the region, other financial centers such as London, Hong Kong, Singapore, and Tokyo are also expected to introduce policies related to BTC spot ETFs. Ultimately, this will lead to widespread globalization and the adoption of cryptocurrencies. For the Middle East, as a region where crypto regulations and licensing procedures are simplified, this can significantly impact and accelerate the growth of cryptocurrency adoption. The Middle East has already seen rapid adoption of cryptocurrencies, with countries like the United Arab Emirates and Dubai becoming major cryptocurrency hubs. This existing interest could fuel further growth with an ETF available. Increased interest in cryptocurrencies could result in the development of new financial technologies and services in the region, further improving financial inclusion and access.