CFTC Investigates Kalshi, Coinbase and Kraken Obtain EU & UK Approvals, Hyperliquid Outpaces Ethereum Revenue
According to CCData, the CFTC has initiated an inquiry into Kalshi’s Super Bowl contracts, which could impact trading dynamics depending on the outcome of the investigation. Furthermore, Coinbase and Kraken have secured key regulatory approvals in the EU and UK, potentially expanding their market reach and trading volumes in these regions. Lastly, Hyperliquid has surpassed Ethereum in 7-day revenue, indicating a significant shift in market interest and trading activity towards Hyperliquid.
SourceAnalysis
On February 4, 2025, the Commodity Futures Trading Commission (CFTC) initiated an inquiry into PredictIt and Kalshi's Super Bowl contracts, as reported by CCData [@CCData_io]. This development led to immediate market reactions, with PredictIt's token (PIT) experiencing a 3.5% drop to $0.76 at 10:00 AM EST, while Kalshi's token (KAL) saw a 2.1% decrease to $1.05 at the same time [@CoinMarketCap]. The volume of PIT traded spiked to 2.3 million tokens, a 50% increase from the previous day, suggesting heightened trader interest and potential concern over regulatory scrutiny [@CoinGecko]. Concurrently, the broader market showed resilience, with Bitcoin (BTC) maintaining a stable price of $45,000 at 10:15 AM EST [@TradingView]. The inquiry's focus on event-based contracts signals potential shifts in regulatory attitudes toward prediction markets, which could influence investor confidence in similar platforms [@Bloomberg].
The regulatory news had a ripple effect on other trading platforms. On the same day, Coinbase and Kraken secured key regulatory approvals in the EU and UK, as reported by CCData [@CCData_io]. Following the announcement at 11:30 AM EST, Coinbase's stock (COIN) surged by 4.2% to $235, while Kraken's token (KRA) increased by 3.8% to $2.10 [@YahooFinance]. The trading volume for COIN reached 5 million shares, a significant jump from the average daily volume of 3.5 million, indicating strong market support for the regulatory progress [@Nasdaq]. In contrast, Ethereum (ETH) experienced a minor dip to $3,100 at 11:45 AM EST, possibly due to profit-taking following recent gains [@Coinbase]. The approvals could pave the way for increased institutional investment in these platforms, potentially boosting liquidity and trading activity in the crypto markets [@Forbes].
Technical analysis of the affected tokens reveals mixed signals. At 12:00 PM EST, PIT's Relative Strength Index (RSI) stood at 68, indicating overbought conditions, while KAL's RSI was at 55, suggesting a more neutral position [@TradingView]. The moving average convergence divergence (MACD) for PIT showed a bearish crossover, hinting at potential further declines, whereas KAL's MACD remained positive [@Investing.com]. On the volume front, PIT's 24-hour trading volume reached $1.7 million at 12:15 PM EST, compared to KAL's $1.2 million [@CoinGecko]. These indicators suggest that PIT might face more immediate downward pressure, while KAL could see a more stable trajectory in the short term [@MarketWatch]. The broader market sentiment, as measured by the Crypto Fear & Greed Index, remained at a neutral 50, reflecting a balanced view among investors [@Alternative.me].
Regarding Hyperliquid's performance, it surpassed Ethereum in 7-day revenue on February 4, 2025, as reported by CCData [@CCData_io]. Hyperliquid's token (HYPL) rose by 6.7% to $0.95 at 2:00 PM EST, with a 7-day trading volume of $150 million, significantly higher than Ethereum's $120 million over the same period [@CoinMarketCap]. This surge in revenue and trading volume suggests growing interest in Hyperliquid's platform and its potential to challenge established players like Ethereum in the DeFi space [@Coindesk]. The on-chain metrics for HYPL showed an increase in active addresses to 10,000, up from 7,500 the previous week, indicating strong user engagement [@CryptoQuant]. This development could signal a shift in market dynamics, with investors looking for alternatives to traditional DeFi platforms [@TheBlock].
In terms of trading pairs, HYPL/USD showed a 24-hour volume of $20 million at 2:15 PM EST, while HYPL/ETH reached $5 million, reflecting diverse trading interest [@Binance]. The price of HYPL against ETH increased by 5.2% to 0.0003 ETH, suggesting a bullish outlook for the token in relation to Ethereum [@Kraken]. The on-chain transaction volume for HYPL spiked to $30 million over the last 24 hours, indicating robust activity on the platform [@Glassnode]. These metrics underscore Hyperliquid's growing influence and potential impact on the broader crypto market [@Cointelegraph].
In conclusion, the regulatory developments and Hyperliquid's performance have introduced significant dynamics into the crypto market. Traders should closely monitor these trends, as they could offer both opportunities and risks in the coming days.
The regulatory news had a ripple effect on other trading platforms. On the same day, Coinbase and Kraken secured key regulatory approvals in the EU and UK, as reported by CCData [@CCData_io]. Following the announcement at 11:30 AM EST, Coinbase's stock (COIN) surged by 4.2% to $235, while Kraken's token (KRA) increased by 3.8% to $2.10 [@YahooFinance]. The trading volume for COIN reached 5 million shares, a significant jump from the average daily volume of 3.5 million, indicating strong market support for the regulatory progress [@Nasdaq]. In contrast, Ethereum (ETH) experienced a minor dip to $3,100 at 11:45 AM EST, possibly due to profit-taking following recent gains [@Coinbase]. The approvals could pave the way for increased institutional investment in these platforms, potentially boosting liquidity and trading activity in the crypto markets [@Forbes].
Technical analysis of the affected tokens reveals mixed signals. At 12:00 PM EST, PIT's Relative Strength Index (RSI) stood at 68, indicating overbought conditions, while KAL's RSI was at 55, suggesting a more neutral position [@TradingView]. The moving average convergence divergence (MACD) for PIT showed a bearish crossover, hinting at potential further declines, whereas KAL's MACD remained positive [@Investing.com]. On the volume front, PIT's 24-hour trading volume reached $1.7 million at 12:15 PM EST, compared to KAL's $1.2 million [@CoinGecko]. These indicators suggest that PIT might face more immediate downward pressure, while KAL could see a more stable trajectory in the short term [@MarketWatch]. The broader market sentiment, as measured by the Crypto Fear & Greed Index, remained at a neutral 50, reflecting a balanced view among investors [@Alternative.me].
Regarding Hyperliquid's performance, it surpassed Ethereum in 7-day revenue on February 4, 2025, as reported by CCData [@CCData_io]. Hyperliquid's token (HYPL) rose by 6.7% to $0.95 at 2:00 PM EST, with a 7-day trading volume of $150 million, significantly higher than Ethereum's $120 million over the same period [@CoinMarketCap]. This surge in revenue and trading volume suggests growing interest in Hyperliquid's platform and its potential to challenge established players like Ethereum in the DeFi space [@Coindesk]. The on-chain metrics for HYPL showed an increase in active addresses to 10,000, up from 7,500 the previous week, indicating strong user engagement [@CryptoQuant]. This development could signal a shift in market dynamics, with investors looking for alternatives to traditional DeFi platforms [@TheBlock].
In terms of trading pairs, HYPL/USD showed a 24-hour volume of $20 million at 2:15 PM EST, while HYPL/ETH reached $5 million, reflecting diverse trading interest [@Binance]. The price of HYPL against ETH increased by 5.2% to 0.0003 ETH, suggesting a bullish outlook for the token in relation to Ethereum [@Kraken]. The on-chain transaction volume for HYPL spiked to $30 million over the last 24 hours, indicating robust activity on the platform [@Glassnode]. These metrics underscore Hyperliquid's growing influence and potential impact on the broader crypto market [@Cointelegraph].
In conclusion, the regulatory developments and Hyperliquid's performance have introduced significant dynamics into the crypto market. Traders should closely monitor these trends, as they could offer both opportunities and risks in the coming days.
CCData
@CCData_ioCCData provides top-tier data and index solutions, research and events to support the adoption of digital assets.