By Omkar Godbole (All times ET unless indicated otherwise)
The cryptocurrency market is experiencing renewed volatility, with Bitcoin (BTC), ether (ETH), and other digital assets facing downward pressure. This shift comes after Federal Reserve Chairman Jerome Powell alleviated some worries regarding inflation driven by tariffs, but the gains made may not hold steady.
Upcoming Influential Speech by Trump
In an interesting development, former President Donald Trump is set to speak at Blockworks’ Digital Asset Summit in New York. Traders are eager to hear about the administration’s potential plans for acquiring Bitcoin in a budget-neutral way, although expectations should be tempered as such an announcement seems unlikely. Instead, Trump may reiterate his ambition to establish the U.S. as the “crypto capital of the world,” a sentiment that could influence market dynamics.
Positive Signs for Bitcoin ETFs
On a brighter note, the renewed enthusiasm for U.S.-listed spot ETFs is providing some strength to the market. Recently, Bitcoin ETFs saw a net inflow of $11.8 million on Wednesday, marking the fourth consecutive day of positive flows, as reported by Farside Investors. In contrast, ether spot ETFs faced a net outflow of $11.7 million, extending a withdrawal streak to 11 days.
A Bullish Outlook Amid Accumulation
Blockhead Research Network highlights several catalysts that could support a bullish outlook. The U.S. government’s exploration of budget-neutral strategies to accumulate Bitcoin could be a transformative element for the current market cycle. Additionally, the introduction of Solana futures on the CME is viewed as a significant bullish indicator for altcoins, potentially increasing institutional interest in SOL.
On-chain data from IntoTheBlock reveals that Bitcoin whales have accumulated approximately 62,000 more BTC than they held at the start of the month, indicating a resurgence in accumulation after almost a year of dwindling balances. XRP whales have also shown increased buying activity in recent months.
SUI Token Sees Positive Momentum
The SUI token remains resilient, attempting to build on its Wednesday gains following Canary Capital Group’s filing for a Sui exchange-traded fund (ETF) with the SEC. This institutional interest may bolster confidence in the token.
Speculative Activity in the Wider Market
In broader market news, a domain claim page for Hyperlane, an open interoperability framework, has emerged, igniting speculation about a potential token airdrop on social media platforms.
The traditional markets provided mixed signals, with the dollar-yen pair exhibiting a death cross pattern that could indicate a significant surge in the Japanese currency, traditionally seen as a safe haven. Meanwhile, copper prices are approaching record highs, which is a positive signal for riskier assets.
What to Watch in the Coming Days
Crypto Events:
– March 20, 9:30 a.m.: Bitnomial will launch what it claims are the first-ever CFTC-regulated XRP futures in the U.S.
– March 20, 9:30 a.m.: Volatility Shares will introduce two Solana (SOL) futures ETFs.
– March 20, 10:40 a.m.: President Trump is expected to address the Digital Asset Summit in New York.
– March 21, 1:00 p.m.: The SEC’s Crypto Task Force will host a public roundtable discussing the definition of a security.
– March 24 (pre-market): Bitcoin miner CleanSpark will join the S&P SmallCap 600 index.
Macro Events:
– March 20, 8:00 a.m.: The Bank of England will announce its interest rate decision.
– March 20, 8:30 a.m.: The U.S. Department of Labor will release employment data for the week ending March 15.
– March 21, 6:30 a.m.: The Bank of Russia is expected to announce its interest rate decision.
Token Events and Governance Votes
Governance discussions are heating up within the crypto community:
– The DYdX DAO is voting on a buyback program that would allocate 25% of the dYdX protocol revenue to it.
– Balancer DAO is considering migrating its ProtocolFeeController to enhance fee tracking and contract storage.
Upcoming Unlocks:
– March 21: Immutable (IMX) will unlock 1.39% of its circulating supply valued at $14.13 million.
– March 23: Metars Genesis (MRS) will unlock 11.87% of its supply worth $240.90 million.
– March 31: Optimism (OP) will unlock 1.93% of its circulating supply valued at $28.06 million.
Frog-Themed Tokens on the Rise
In a quirky turn of events, frog-themed tokens surged, particularly the KEKIUS MAXIMUS token, which skyrocketed 96% after Elon Musk shared a portrait of “Kekius Maximus” on social media. His playful engagement has generated speculation about potential backing for the KEKIUS token, along with a resurgence in interest for frog-related memes and tokens.
Market Movements and Trends
The global futures open interest for Bitcoin has climbed to $13.3 billion, the highest level since early March. In contrast, Ethereum’s open interest remains under $2 billion. Despite recent price gains, the basis in CME’s Bitcoin one-month futures has dropped below an annualized 5%, indicating reduced participation from institutional traders.
Current Market Status
– Bitcoin (BTC): Down 0.26% at $83,576.60 (24hrs: +2.07%)
– Ethereum (ETH): Down 2.85% at $1,980.15 (24hrs: +0.3%)
– CoinDesk 20 Index: Down 0.96% at 2,711.65 (24hrs: +3.04%)
Technical Analysis
Nvidia (NVDA) has triggered a head-and-shoulders breakdown, suggesting a potential shift from a bullish to a bearish trend, which may have negative implications for risk assets, including Bitcoin. The correlation between NVDA and Bitcoin over the past 90 days is noted to be approximately 0.6.
Crypto Equities Update
Key crypto equities have shown mixed performance:
– MicroStrategy (MSTR): Closed at $304.23 (+7.43%)
– Coinbase Global (COIN): Closed at $189.75 (+4.75%)
– Galaxy Digital Holdings (GLXY): Closed at C$17.70 (+3.57%)
– Riot Platforms (RIOT): Closed at $7.78 (+5.14%)
ETF Flows Insights
Bitcoin ETFs have experienced positive daily net flows of $11.8 million, bringing cumulative net flows to $35.88 billion, while ether ETFs recorded a negative flow of $11.7 million.
Chart of the Day
Coinbase’s layer 2 scaling solution, Base, continues to lead with the highest dollar value of coins received through crypto bridges, with Berachain and Solana trailing behind.
In Summary
Recent developments in the cryptocurrency market reveal a complex interplay between regulatory news, institutional interest, and social media influence. As traders navigate this dynamic landscape, staying informed about upcoming events and market movements will be crucial for making strategic decisions.
