Crypto News: What Dubai, Ferrari & Wallstreet Have In Common?

The crypto market just concluded the week on a recovery leg. Most of the top coins were up slightly in the last few days, with some interesting crypto news streaming in during the weekend.

Here are some of the most interesting crypto news that occurred in the last 24 hours. The Dubai government has been testing its Virtual Asset Regulatory Authority (VARA) system since 16 October.

The Dubai government teamed up with Crypto.com to test-run the system, which is designed to facilitate virtual asset activities.

The VARA system makes Dubai the first government in the UAE to fully embrace cryptocurrencies.

Although reports revealed a test run of virtual assets this month, VARA previously made headlines in May.

The regulatory authority oversaw the launch of the Dubai Lands Department’s first tokenized real-estate platform in May this year.

VARA represents the Dubai Government’s embrace of crypto and web3, allowing it to be at the forefront of key global trends.

The rapid crypto adoption also contributes to Dubai’s attractiveness as a crypto haven and expatriate destination.

Ferrari Joins Institutions Embracing Crypto

Ferrari is back on crypto news headlines, and this time its courtesy of recently revealed plans to launch its own digital token. Preliminary data revealed the token will be called Token Ferrari 499P.

The  Italian automotive manufacturer’s push into the crypto segment is part of its return to Le Mans campaign. This development highlights a growing trend involving the tokenization of luxury items.

Token Ferrari 499P highlights a tokenization use –case allowing the Italian automaker to luxury tokenization to hype up its latest efforts.

However, this was not the first time the company has been involved in crypto.

Ferrari has been accepting cryptocurrencies for vehicle sales since 2023. The move was fueled by demand from crypto traders.

However, it was worth noting that the company does not actually receive crypto as payments.

Instead, the Italian supercar maker receives the payments in fiat form because third-party processors immediately convert the crypto to fiat.

Wall Street Prepares for a $6.6 Trillion Liquidity

The U.S Federal Reserve will hold an FOMC meeting on 29 October, which is just a few days away. Analysts currently expect that the FED will announce a 25 Basis points rate cut.

If the expectations become a reality, then the FED will likely trigger another wave of liquidity flows into risk-on assets. Wall Street analysts anticipate about $6.6 trillion worth of liquidity inflows.

The FOMC rate cut expectations might be one of the reasons why the crypto market has been achieving some recovery during the weekend.

Some crypto market participants have been buying digital assets in anticipation of higher prices ahead.

Polymarket predicted a 98% chance that the FED will cut rates before the end of October and a 99% rate cut probability in December.

The total cryptocurrency market cap recovered from $3.53 trillion last Saturday (18 October) to $3.76 trillion 7 days later.

While this may not seem like much of a recovery, it occurred from an extreme fear market sentiment.

The market sentiment dipped as low as 23 points last Saturday, but it recovered slightly to 37 points at the time of observation.

This recovery highlighted the shifting expectations but demand remained relatively weak as investors proceeded with caution.

A combination of positive crypto news and improving market sentiment may favor more recovery in the remaining days in October.