Crypto analyst Nicholas Merten says Hong Kong’s decision to allow retail investors to buy and sell cryptocurrencies is a bullish sign for the altcoin market. But the market will need more than that.
“Hong Kong’s crypto decision is something to celebrate for altcoin investors”
Hong Kong on Thursday reinstated individual crypto trading on selected exchanges, which could serve as a test case for China to roll back the 2021 ban on cryptocurrencies.
Similar to Merten, Tron founder Justin Sun interprets the development as a bullish sign. Sun said Hong Kong’s crypto move is “a huge step forward for cryptocurrency in China.” DataDash host Nicholas Merten says Hong Kong’s crypto move is something to celebrate.
Merten said in his latest YouTube post, “so the vast majority of participants can now start re-engaging in crypto. It’s definitely really good news,” he said. But Merten says Hong Kong’s move probably won’t be enough to trigger a bull market cycle.
Assuming that Hong Kong is now paving the way for investment thanks to this individual investor, probably [1% of Hong Kong] GDP is invested in cryptocurrencies. This means a $3.8 billion investment initiative in the market.
But the question is whether this will lead to a new bull market. I will keep coming back to that point here. And to be honest with you, as we talk about Bitcoin’s halving event in a year, more Bitcoins will be removed from that. So I would say that this alone is not a sufficient narrative.
Kaleo reports that INJ took the lead after the latest developments
Derivatives exchange Injective (INJ) surpassed market giants in the week when Hong Kong’s crypto move was on the agenda. In his current analysis, Kaleo examined the latest movements of INJ against BTC and ETH. Accordingly, the INJ/BTC pair is successfully rebuilding resistance as support.
Kaleo then updates the chart, saying that the INJ/BTC pair could cool off for a short time after rising as high as 0.0003031 BTC ($8.23). According to their analysts, “INJ/BTC with a solid move so far. It wouldn’t be surprising to see some buildup here before a higher continuation.”
Kaleo also watches closely the price action of INJ against the US dollar. The popular trader says that the pair turned bullish after removing the diagonal resistance and retesting it as support.
Why is INJ price rising?
Injective recently announced its integration with (MATIC). According to the official announcement:
Injective is launching a groundbreaking integration with Polygon Labs to enable true DeFi formability. For the first time, the native assets of Polygon and Injective are available for various cross-chain use cases in the two ecosystems.
Injective launches a groundbreaking integration with @0xPolygonLabs to enable true DeFi composability 💥
For the first time, native assets from Polygon & @Injective_ can be utilized for a diverse array of cross-chain use cases within the two ecosystems.https://t.co/8bX6wdvDQD
— Injective 🥷 (@Injective_) May 31, 2023
After the proposal was approved by 99.8% of community voters, Injective has also completed an upgrade to its Avalon network. cryptocoin.comThe Avalon Mainnet Upgrade will provide the following features to the Injective infrastructure.
- Powerful scalability optimizations
- PoS (proof of stake) verification renewal
- The fastest block times in Mainet.
