Confidence is returning to cryptocurrency markets. The twenty largest coins are all up over the seven-day period, with Ether, Solana, and Cardano all increasing by over 10%.

[Source: Quantify Crypto]

Investors can deduce that this resurgence corresponds to the normalisation of big news events like Ukraine and rising inflation, that are now priced into the market. So, with that in mind, we're covering the next set of headlines that will affect the market in the week ahead.

Ethereum Merge

Ethereum multi-stage move to a proof-of-stake mechanism has achieved a key milestone. Last week, Ethereum merged on the Kiln testnet, which was created to simulate the operation of Ethereum 2.0. Ethereum 2.0 is seen as a necessary upgrade for Ethereum to handle a larger volume of transactions while keeping fees low.

If the merge to proof-of-stake works as planned, energy consumption for Ethereum will be cut by 99.95%, and Ethereum supply will become deflationary. In other words, Ethereum will become more useful and more valuable after the move to proof-of-stake.

Investors are watching the Kiln testnet closely for signs that the long-awaited merge will occur successfully. There is no official date for the public merge yet, but the Kiln testnet is the last test before going public. Ether rose about 6% after the merge was launched on Kiln, and early feedback is positive. However, some transactions are not correctly validating. Expect the price of Ether over the next week to be sensitive to feedback from the Kiln testnet as node operators, application developers, and stakers test their setups on the network.

Global Regulatory Wrap-up

Some key news stories have occurred around the world, so we've got a summary of the stories likely to weigh on markets below:

• Australia: This week the Australian government is releasing three key documents to begin consultation on regulatory reform for digital assets. This will include reforms directed at ensuring cryptocurrency exchanges hold the assets of Australian investors onshore. The reforms will also consider how to tax cryptocurrencies for Australians. Local trade volumes for Australians may be affected depending on the specifics being put forward in the regulatory reform documents.

• South Korea: South Korea has elected a new president, Yoon Suk-yeol. This is important news for crypto investors as he has committed to embracing crypto This is a U-turn on Korea regulations under President Moon Jae-in who closed several crypto exchanges. President Yoon Suk-yeol intends to review the banning of initial coin offerings, which should spark the creation of many new coins out of a country that already has a $2 trillion global virtual asset market.

• United States: President Joe Biden recently signing an Executive Order (EO) on Ensuring Responsible Development of Digital Assets. Analysts are viewing the EO as a positive announcement that the United States will enter a period of stability over crypto regulations as various federal agencies investigate issues and create proposals.

Bitcoin and Institutional Investors

Research from IntoTheBlock suggests that the main players in Bitcoin are almost entirely institutional investors like hedge funds. Institutional Bitcoin traders are responsible for 99% of all transactions worth more than US$100,000. This contrasts with pre-2019, when institutional investors accounted for as little as 60% of such transactions.Institutional interest in the market accelerated at the end of 2020 and has remained dominant. IntoTheBlock believes that these institutional investors are not yet driving prices but over time expects that such a market structure will strengthen the demand-side economics of Bitcoin. If this dynamic plays out, the price of Bitcoin should rise in line with the increased size of institutional demand and holdings.

Upcoming Initial Coin Offerings

An initial coin offering (ICO) is the cryptocurrency equivalent to an initial public offering (IPO). During an ICO, cryptocurrency projects will raise interest in their project and sell an initial allocation of coins to investors to raise funds.

Here a list of the latest ICOs that are about to drop:

CoinICO End DateGalaxy Blitz23 Mar 2022 Hoglympics 24 Mar 2022 Basketballverse 25 Mar 2022 Universe 29 Mar 2022

[Source: Coin Market Cap]