Growing institutional demand for Bitcoin ETFs is positively influencing the broader market. European regulatory shifts and the migration to low-cost blockchain solutions present a mix of opportunities and risks. PEPE's performance is currently sentiment-driven, necessitating close attention to short-term BTC fluctuations and overall market volatility. The overall market bias remains neutral.

・Luxembourg Sovereign Wealth Fund Invests 1% in Bitcoin ETF A direct investment by a European sovereign wealth fund into a Bitcoin ETF represents a significant signal of growing institutional confidence in Bitcoin. This suggests that traditional financial market participants are beginning to recognize the viability and growth potential of the digital asset class. Such a move could potentially trigger follow-on investments from other institutional players, like sovereign funds and pension funds, fostering long-term capital inflows into Bitcoin. Meme coins such as PEPE may benefit indirectly from improved overall market sentiment and expanded risk appetite, although the direct impact is expected to be limited. ・European MiCA Regulation Faces Transferability Gaps The observation that Europe's Markets in Crypto-Assets (MiCA) regulation does not adequately address inherently non-transferable asset classes, such as private company shares or custom contracts, points to the immaturity of the legal and regulatory framework for digital assets. This leaves ambiguity regarding how non-fungible tokens (NFTs) and certain security tokens will be handled within the European market. Such ambiguity could act as a barrier to innovation, potentially limiting the liquidity and adoption of related digital assets. Projects like PEPE might find themselves compelled to increase their reliance on overseas markets or explore structures operating outside the regulatory scope while awaiting clarification. ・Ripple Partners with Bahrain to Introduce RLUSD Stablecoin Ripple's partnership with Bahrain to launch the RLUSD stablecoin aims to bolster the local fintech ecosystem and accelerate the adoption of blockchain technology for cross-border payments within the Middle East region. This initiative represents an effort to construct a more secure and reliable digital asset infrastructure through collaboration with regulatory authorities, potentially driving stablecoin adoption regionally. PEPE could potentially benefit from the increased ease of converting to fiat currency stemming from stablecoin proliferation, alongside the growth of the broader DeFi ecosystem. ・Ethereum Developers Announce Kohaku Roadmap Enhancing Privacy and Security Ethereum developers have announced the Kohaku roadmap, focused on enhancing wallet privacy and security. This represents a significant step towards improving user protection and trust within the Ethereum ecosystem. Specifically, advancements in Layer 2 solutions and private transaction technologies could foster the development of more secure and private Decentralized Applications (DApps), potentially encouraging participation from both institutional investors and retail users. Projects like PEPE, by developing and operating on such enhanced platforms, could benefit from increased user confidence, contributing to their long-term growth prospects. ・BNB's "Mindshare" Surges 251% as Market Shifts to Low-Cost Chains The analysis indicating a 251% surge in "mindshare" within the BNB Chain ecosystem, alongside a market shift towards high-speed, low-cost chains, suggests growing interest in scalable blockchain platforms as alternatives to Ethereum. Platforms like BNB Chain may experience expanding adoption across sectors such as DeFi, NFTs, and gaming, driven by their low transaction fees and fast processing speeds. This trend could potentially drive increased demand for the BNB token, leading to price appreciation. PEPE might indirectly benefit from interactions with projects deployed on the BNB Chain and the overall ecosystem's growth. ・Bitcoin Poised for "Parabolic" Rise or Bull Market End Within 100 Days? The analysis assessing whether Bitcoin will experience a "parabolic" rise or the conclusion of its bull market within the next 100 days highlights uncertainty regarding the short-term market direction. The observed "tightness" in the Bollinger Bands suggests potential for significant price volatility, which, based on historical patterns, is likely to resolve within months. This analysis underscores the importance for market participants to monitor short-term fluctuations while maintaining a long-term perspective. For highly volatile assets like PEPE, this uncertainty may present opportunities for short-term price movements, while simultaneously increasing associated risks. ・Bitcoin ETF Inflows Accelerate in "Uptober" Amid 21 Applications The submission of 21 cryptocurrency ETF applications within the first eight days of October, dubbed "Uptober," clearly indicates institutional investors actively seeking exposure to cryptocurrencies, particularly Bitcoin. October historically being a strong month for the crypto market, this wave of ETF applications could lead to further liquidity injection and upward price pressure. The expansion of the ETF market simplifies access to Bitcoin, encouraging participation from a broader investor base. PEPE is expected to see indirect benefits from the improved overall market sentiment and the influx of wider investment capital. ・Record $48.7 Billion Annual Net Inflow into Crypto ETPs The fact that annual net inflows into cryptocurrency investment products (ETPs) exceeded $48.7 billion, surpassing the total inflows recorded in 2024, demonstrates the sustained appetite of institutional investors for digital assets. Data from CoinShares indicates that these inflows are primarily concentrated in major cryptocurrencies such as Bitcoin and Ethereum. This influx of capital can enhance overall market liquidity and potentially contribute to price stabilization. Altcoins and meme coins, like PEPE, may indirectly benefit from an improving overall market sentiment and heightened risk appetite. [Overall Summary] Regulatory developments in Europe and the investment in Bitcoin ETFs by the Luxembourg sovereign fund indicate growing institutional trust and interest in digital assets. Meanwhile, technological advancements, such as the shift towards low-cost chains like BNB Chain and enhanced privacy features on Ethereum, are promoting ecosystem diversification and growth. These factors contribute to increased overall market liquidity and the participation of a broader investor base, potentially offering indirect positive impacts on altcoins like PEPE through improved overall market sentiment. However, concerns regarding regulatory uncertainty and short-term volatility persist, necessitating continued attention to market dynamics.

Regulatory uncertainty (including potential ambiguities within MiCA) and Bitcoin's short-term volatility constitute downside risks. PEPE's highly speculative nature is also a risk factor. Key support levels are near current lows, but pinpointing a specific price is difficult. Caution is advised regarding sudden shifts in market sentiment.

Expect volatility correlated with Bitcoin's movements over the next 24-48 hours. Key factors for the medium term (1 week) include institutional inflows and regulatory developments. An acceleration of ETF applications and stability in major cryptocurrencies may act as catalysts. Overall, the outlook is neutral.

**Overall Conclusion:** We rate this outlook **Neutral**. Institutional investor interest in Bitcoin ETFs enhances overall market confidence, potentially offering indirect benefits to PEPE as well. However, regulatory uncertainty in Europe and BTC's short-term volatility remain key risk factors. As PEPE is a sentiment-driven asset, it is highly susceptible to broader market trends. **Investor Action Plan:** Wait for a clear market direction before considering entry points. Consider making small purchases at current lower price levels during a stable upward trend for BTC or when PEPE's trading volume increases. Implement profit-taking incrementally and set strict stop-loss orders. This week, focus on BTC's short-term price action and the progress of ETF applications. The recommended strategy involves buying on pullbacks or entering positions after clear breakouts. For risk management, proper position sizing and monitoring regulatory developments are crucial. While PEPE is a high-risk asset, opportunities can be found through accurate analysis and disciplined trading.