UAE Expands Share of Global Crypto Market – News

Leading crypto exchange Bitget is expanding operations in the region

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Gracy Chen, Managing Director of Bitget

The UAE experienced 400 percent growth in the number of registered crypto businesses between 2020 and 2022, leading to a surge in global digital asset trading, which accounts for 10 percent of global volume, research shows.

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

Based on these trends, Bitget, a leading crypto exchange plans to rapidly scale its Middle East team to support business growth, with 60 new hires over the next 2 years or more across the Middle East region. New team members will include various middle office and back office functions. “As of now, Dubai is an operational hub for the Middle East market. This move is not just about business, it is about our core values, which rest on promoting blockchain and crypto adoption worldwide,” Gracy Chen, managing director of Bitget, told Khaleej Times in an interview.

Bitget established an office in Turkey earlier this year and currently provides fully localized services through its online trading platform. On November 23, last year, Bitget launched Arabic support for crypto trading in the Middle East and North African countries. apply for licenses. Obtaining the necessary regulatory approvals and licenses is a priority for establishing regional offices in these markets,” said Chen.

With Bitcoin Trading at Records, What’s the Outlook for Cryptos This Year?

The BTC halving significantly affects the supply and demand dynamics of BTC. With the US Securities and Exchange Commission’s approval of the BTC Spot ETF, the demand for BTC will increase significantly. The April 2024 BTC halving market is expected to support a price rally earlier than previous halving cycles, potentially playing a larger role in supporting upward price movements for BTC.

Throughout 2024, it is essential to monitor any potential shifts in US policy and the timing of such shifts. With worsening expectations for the US economy, there is market analysis suggesting a strong likelihood that the Federal Reserve will initiate a rate cut, along with a drop in the 10-year Treasury yield, which bodes well for overall risk assets. Stablecoin market cap has seen constant growth for over a month. It is important to note that changes in stablecoin market capitalization usually lag behind market trends. If this trend of stablecoin market cap growth continues, it indicates a temporary absence of a market shift.

How has Web3 commerce evolved over the past year and how do you see it shaping up this year?

The concentrated application for a Bitcoin ETF led by BlackRock is the most important story of 2023.

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

The influx of significant new funds into the cryptocurrency market will definitely boost the total market value of the crypto world. With such expectations, the confidence of both institutions and retail investors has been significantly strengthened.

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

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

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

Bitcoin will undergo a halving in 155 days, increasing the scarcity of Bitcoin.

The FTX case is gradually entering its later stages and faces restructuring. As regulatory clarity emerges, it is expected to attract new retail funds.

The US interest rate hike cycle is nearing its end, and the market expects the first rate cut as early as May 2024. Under this impetus, positive sentiments in cryptocurrency markets are expected to strengthen, strengthening the appeal of Bitcoin.

What is likely to be the impact of Bitcoin’s ETF approval on the Middle East market?

Looking back at the impact of gold ETFs on the market, the first gold-backed ETF launched in the United States was the SPDR Gold Trust, which debuted on the NYSE on November 18, 2004, with gold closing at $444. 3 per ounce on that day. As other institutions gained access to gold exposure through ETF purchases, the influx of funds led to a steady rise in the spot price of gold, which reached $1,666 per ounce in 2012. As Bitcoin ETF was approved, if these financial giants wanted to invest in BTC with a risk exposure similar to gold, they would have to invest around $30-40 billion.

Financial institutions in other regions are expected to apply for similar businesses in the United States. To prevent large and medium-sized financial institutions from transferring 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. This will eventually lead to the widespread globalization and adoption of cryptocurrency. For the Middle East, as a region where crypto regulations and licensing procedures are streamlined, this could significantly influence and accelerate the growth of crypto adoption. The Middle East has already seen rapid crypto adoption, with countries such as the UAE and Dubai becoming major crypto hubs. This existing interest can fuel further growth with an available ETF. The increased interest in crypto may lead to the development of new financial technologies and services in the region, further improving financial inclusion and access.