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Bitcoin fever is running high, again – Saxo Bank MENA Market Report

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By Charu Chanana, Head of Forex Strategy, Saxo Bank

Bitcoin surged to a record peak yesterday, fueled by rising demand since the introduction of spot ETFs in January and anticipation surrounding the April halving event, which is expected to limit supply. Moreover, the boost in liquidity and the prospect of Federal Reserve rate cuts are propelling risk assets. However, prudent risk management is warranted, given the stretched positioning and significant volatility.

The price of bitcoin (XBTUSD) soared to all-time highs of over $69,000 on Tuesday before turning lower as some traders locked in profits. Gains have reached over 50% year-to-date, with much of the surge occurring recently as trading volume surged for US-listed Bitcoin funds.

Ethereum (XETUSD) outperformed Bitcoin even as the SEC recently pushed back against Ethereum ETFs proposed by BlackRock and Fidelity. Markets are awaiting the SEC’s decision on the VanEck Ethereum ETF, which has its final decision deadline on May 23rd. Any approval, however, will likely come with the rest of the ETF filings as well, just like the spot Bitcoin ETFs, to prevent a first-mover advantage.

What is driving the bitcoin rally?

Record inflows in the recently launched Bitcoin ETFs

The first spot Bitcoin ETFs were launched in January this year, and investors are rushing to invest in them. Bitcoin spot ETFs have attracted everyday investors who want to buy digital assets through their brokerage accounts without going to a crypto exchange or to funds that track Bitcoin’s price through futures contracts.

BlackRock’s iShares Bitcoin Trust eclipsed $10 billion in assets Thursday, the fastest a new ETF has ever reached that milestone. Fidelity’s fund, with more than $6 billion in assets, is already the asset manager’s third-largest ETF and has accounted for most of its net ETF inflows this year.

Anticipation ahead of the halving event

The halving, also known as the “halvening,” is a scheduled event in Bitcoin’s protocol that occurs approximately every four years. During this event, Bitcoin miners’ reward for validating transactions and securing the network is halved. This reduction in the reward decreases the rate at which new bitcoins are created, effectively reducing the available supply.

The halving aims to control inflation and ensure that the total supply of bitcoins remains capped at 21 million, as specified in Bitcoin’s code. This scarcity is one of the key factors driving Bitcoin’s value.

The next bitcoin halving is expected to occur in April 2024, when the number of blocks hits 740,000. It will see the block reward fall from 6.25 to 3.125 bitcoins. The general consensus is that Bitcoin halving events are positive for the price of Bitcoin, and historically, they have been.

Flush liquidity and general risk-on environment

The Fed’s overnight reverse repurchase agreement facility, or RRP—where eligible counterparties can park cash to earn a fixed rate—has been dwindling. This means that money market funds that parked excess cash at the RRP before have been withdrawing it, particularly to buy T-bills, adding to market liquidity. As hinted by Fed member Chris Waller, the Fed may be at a point to start discussing the tapering of QT.

Even as policy rates may remain higher for longer, the market is flush with liquidity. This could be partly fuelling the recent all-time highs across risk assets, including NASDAQ. Bitcoin remains sensitive to liquidity shifts, given it is a high-volatility tech proxy.

FOMO buying

For those undecided about entering the crypto sphere, few things induce more FOMO (fear of missing out) than witnessing Bitcoin’s ascent from the sidelines. Knowing others are making money while they’re not can push people to take big risks. Indeed, FOMO serves as a potent catalyst for impulsive buying decisions.

The fragmentation game

Bitcoin provides an alternative asset choice for those looking to diversify away from government-controlled assets. This has been a factor supporting gold, as many central banks have bought gold over the last few years to diversify their USD reserves. Bitcoin could face a similar demand if it is increasingly accepted as the ‘digital gold’ of the 21st century. However, there are inherent risks to consider. Presently, Bitcoin’s volatility makes it an unreliable store of value.

Exit from the crypto winter

The market seems to be healing from the aftermath of the crypto winter, marked by the collapse of firms like TerraLuna, Genesis, BlockFi, and FTX, which tarnished cryptocurrencies‘ reputation. A recent period of calm suggests stability, while some see it as a necessary cleanup of the crypto ecosystem.

Risk management is warranted

Bitcoin price action follows a high-beta cycle. When it rises, it rises fast, but when it falls, it also falls much quicker than other risk assets because of a high level of leveraged play in the crypto market. The recent run higher could have been a result of a short-squeeze, as strong ETF flows lead to higher prices and force some shorts to cover. Likewise, leveraged traders are forced to liquidate when the price declines, exacerbating the selloff. Thus, volatility is a key risk.

Also worth noting that speculative positioning is also long, which makes it potentially vulnerable to a reversal if ETF demand starts to moderate. Positioning in altcoins, such as Ether, is relatively more modest and long.

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MultiBank Group and Khabib Nurmagomedov Launch an Exclusive Worldwide Multi-Billion-Dollar Joint Venture to Build the World’s First Regulated Tokenized Sports Ecosystem

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Multibank Group, the financial derivatives institution, has entered into an exclusive worldwide multi-billion-dollar joint venture with global sports icon and undefeated UFC champion Khabib Nurmagomedov (29-0) to create a first-of-its-kind regulated ecosystem connecting global finance, sports and technology.

The partnership will culminate in the creation of a multi-billion-dollar joint venture, MultiBank Khabib LLC, uniting two global powerhouses: MultiBank Group, a leader in regulated financial excellence, and Khabib Nurmagomedov, undefeated in the octagon and whose influence extends far beyond sport. The company will operate from MultiBank Group’s headquarters in Dubai, building a worldwide network of high-end sports ventures and real-world digital assets. This structure fulfills the vision of MultiBank Group Founder and Chairman, Naser Taher, for an exclusive global joint venture, granting MultiBank exclusive rights to develop and promote projects under the Khabib Nurmagomedov brand name, including the development of 30 state of the art Khabib gyms, Gameplan and Eagle FC brands.

The entire venture is backed by MultiBank Group’s regulated digital ecosystem and powered by its cornerstone $MBG Token being the driving force behind its expanding portfolio of real-world-asset (RWA) technologies and initiatives.

 Naser Taher, Founder and Chairman of MultiBank Group, stated: “From the UAE, we are shaping a new blueprint for the business of sport through the regulated tokenization of real-world sports assets (RWSA). Together with Khabib Nurmagomedov, and powered by our ecosystem token, $MBG, we are uniting finance and athletics into a single transparent, technology-driven ecosystem — one built on trust, innovation, and the strength of the MultiBank framework. This initiative proudly aligns with the UAE’s vision of becoming a global hub for digital asset innovation and world-class sports.

Khabib Nurmagomedov added: “This partnership with MultiBank Group is built on shared values of strength, respect, and discipline. Together with Multibank, we are building real global opportunities that go beyond sport, empowering athletes, and fans through a regulated and innovative digital ecosystem. This is only the beginning.”

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Edenred UAE strengthens market leadership with financially inclusive payroll solutions, C3Pay serving 2.5 million users

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Edenred, a leading digital platform for services and specific purpose payments and the undisputed market leader in salary processing and financial inclusion for the underbanked in the UAE, continues to reinforce its leading position in payroll card solutions, value-added financial services, and compliance-first innovation under the leadership of newly appointed Managing Director Claudio Di Zanni.

As the first company authorised by the Central Bank of the UAE to process WPS salaries, Edenred UAE has long positioned financial inclusion as the foundation of its offer in UAE — ensuring that access to financial services isn’t an added benefit, but a guaranteed outcome of getting paid. 

Trusted by both large enterprises and a growing base of SMEs, the backbone of the UAE economy, Edenred UAE now serves more than 15,000 corporate clients, 2.5 million cardholders, and partners with over 10 banks and 20 financial institutions. Demand has been strong in sectors such as manufacturing, construction, and facility management—where reliability and seamless execution are critical.

Edenred UAE salary cards, C3Pay, powered by RAKBANK and part of the Mastercard network, can be used globally. A key driver of Edenred’s adoption success is its unmatched expertise in on-site training at worker accommodations, which helps large enterprises efficiently onboard thousands of employees. This ensures that workers understand how to activate their cards, utilise app features, and engage with key financial tools.

Claudio Di Zanni, Managing Director, Edenred Middle East, said: “Edenred UAE has set the benchmark for payroll and financial access in the region with digital innovative solutions, great ambitions and internationally committed teams. Our ambition now is to extend that lead by deepening trust with our clients, scaling services that matter to end users, and ensuring full compliance in a fast-evolving regulatory landscape. With unmatched reach, an expanding client base, and a proven model for financial inclusion, we are ready to shape the next phase of the region’s salary card ecosystem — developing its full potential and contributing to giving workers who were previously excluded from the financial system a secure, transparent, and dignified way to manage their money.

Edenred UAE remains the reference in payroll solutions, as it continues to scale high-impact services, deepen banking partnerships, and reinforce its role as the benchmark for secure, compliant, and ethical financial access in the UAE and beyond. With a sharpened focus on innovation and strengthened leadership, it is entering a new chapter of platform excellence as the backbone of financial access for the UAE’s workforce.

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Dhruva urges UAE firms to focus on data sovereignty in e-Invoicing transition

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The 2026 mandate is an opportunity for businesses to align compliance with stronger data governance standards

With the UAE’s mandatory eInvoicing framework set to launch in 2026, Dhruva urges taxpayers to move beyond data residency considerations and focus on the critical issue of data sovereignty when selecting accredited service providers (ASPs). When adopting any cloud solution, it’s crucial to take the UAE National Cloud Security Policy into consideration, which provides a comprehensive checklist for cloud customers. This policy details necessary arrangements with cloud service providers, outlines contract requirements and sets cloud security requirements and enforcement measures.Dhruva is a leading tax advisory firm specializing in VAT, corporate tax, transfer pricing, and international taxation in the Middle East.

The eInvoicing rollout, based on the OpenPeppol five-corner model, will route all business-to-business (B2B) and business-to-government (B2G) invoices through ASPs that validate, exchange, and report tax-relevant data directly to the Federal Tax Authority (FTA). This shift makes the question of where data lives and who ultimately controls it – a matter of legal, operational, and financial consequence.

Commenting on the development, Nimish Goel, Partner and Head of GCC, Dhruva Consultants, said: “Businesses cannot afford to mix data residency with sovereignty. Hosting tax data within UAE data centres is necessary, but it does not, by itself, guarantee compliance or protection. True sovereignty means that encryption keys, administrative controls, and audit logs remain fully under UAE jurisdiction and cannot be accessed by foreign authorities. For taxpayers, this distinction is not technical—it is a fundamental risk-management decision.”

Dhruva highlights that this distinction is becoming urgent for three reasons. First, the UAE has enacted a robust Federal Data Protection Law (PDPL) and sector-specific rules that demand explicit safeguards on cross-border data flows. Second, with eInvoicing deadlines approaching, taxpayers must evaluate how each provider’s hosting model aligns with UAE data hosting requirements, sovereignty and National Cloud Security Policy laws. Finally, the operational reality is that migrating data and applications between clouds is not seamless. Factors such as data gravity, proprietary platforms, and audit trail integrity make switching providers slow, risky, and expensive.

“E-invoicing will not only redefine how businesses transact with government authorities, but also how they safeguard their most sensitive tax and financial records,” Goel added. “Companies need to recognise that the choice of ASP is a long-term strategic decision. The location of the cloud operator, the jurisdiction under which they fall, and the location of their control plane and encryption keys all impact compliance and data security far more than the physical location of the server rack.”

Dhruva advises taxpayers to approach ASP selection with a structured due-diligence process aligned with the policy for cloud customers in the UAE. This policy covers key domains such as governance, data location and sovereignty, interoperability, security incident and access management, data confidentiality, architecture and infrastructure companies should ensure that all storage, backups, and logs are held within UAE borders, that operational control and key management remain in UAE jurisdiction, and that providers comply with the UAE’s Peppol interoperability standard. Audit logs should be immutable, recovery sites must be located in the country, and exit strategies need to be documented and tested, with transparency on egress costs.

“Taxpayers cannot treat this as a simple IT procurement,” Goel emphasized. “It is a compliance and sovereignty choice that will determine their risk exposure for years to come. The time to ask these questions is now—before companies find themselves locked into providers that may not meet their future regulatory and operational needs.”

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