Crypto

Key Points

• Solana's SIMD-228 proposal to dynamically adjust inflation rate based on staking participation was rejected by stakeholders.
• The vote turnout was significant, with 74% of the staked supply participating, but only 43.6% voted in favor, falling short of the required 66.67% approval.
• Despite the proposal's failure, it was considered a victory for Solana's governance process due to the high level of engagement and the scale of the vote.
• The proposal aimed to reduce inflation by up to 80%, potentially stabilizing the network and encouraging more active use of SOL in DeFi.

Summary

A proposal to dynamically adjust Solana's inflation rate based on staking participation, known as SIMD-228, was rejected by the Solana community. Despite the proposal's defeat, it was celebrated as a significant event for Solana's governance process. The vote saw participation from 74% of the staked supply across 910 validators, marking it as one of the largest governance votes in cryptocurrency history. However, only 43.6% voted in favor, with 27.4% against and 3.3% abstaining, failing to meet the required 66.67% approval threshold. The proposal aimed to shift from a fixed inflation schedule to a market-based model, potentially reducing inflation by up to 80% to stabilize the network and encourage more active use of SOL in DeFi. Critics argued that lower inflation could challenge smaller validators' profitability and introduce network instability due to unexpected shifts in staking rates. Despite the proposal's rejection, the Solana ecosystem viewed the event as a successful stress test of its governance capabilities.

Key Points

• Bitcoin needs a weekly close above $81,000 to avoid further downside volatility ahead of the FOMC meeting.
• A drop below $76,000 could invite more short-term selling pressure.
• The market largely expects the Fed to hold rates steady, but any hawkish signals could pressure Bitcoin.
• A weekly close above $85,000 might reignite investor optimism for more upside.

Summary

Bitcoin's price dynamics are closely tied to upcoming economic events, particularly the Federal Open Market Committee (FOMC) meeting. Analysts suggest that Bitcoin needs to close above $81,000 weekly to avoid further downside volatility, with a potential drop to $76,000 if it fails to do so. The market anticipates the Fed will maintain current interest rates, but any unexpected hawkish signals could negatively impact Bitcoin and other risk assets. Conversely, a dovish surprise might not immediately boost Bitcoin due to ongoing macroeconomic uncertainties. Additionally, a weekly close above $85,000 could signal a strong upward movement, potentially reigniting investor optimism. Regulatory developments, like the introduction of a bill to codify Trump's Bitcoin reserve, might also influence market sentiment, although the immediate impact of such legislative actions remains uncertain.

Key Points

• Bitcoin's price has declined due to fears of a global trade war and potential recession, but has shown signs of recovery with cooling inflation.
• Adopting a buy-the-dip strategy could be beneficial, with stocks like NVIDIA, Robinhood, Interactive Brokers, and Visa recommended for investment due to their growth potential and positive earnings revisions.

Summary

The cryptocurrency market, particularly Bitcoin, has experienced a downturn due to economic concerns stemming from President Trump's tariff policies, which have escalated fears of a global trade war and potential recession. However, recent data indicating a cooling in inflation has provided some relief, with Bitcoin's price recovering slightly from a low of below $77,000 to around $82,000. Despite this, Bitcoin remains significantly below its all-time high. The article suggests that investors might consider a "buy-the-dip" approach, focusing on stocks that benefit from or are involved with cryptocurrencies. NVIDIA, known for its GPUs crucial in crypto mining, Robinhood Markets with its crypto trading platform, Interactive Brokers offering crypto futures trading, and Visa expanding into blockchain technology, are highlighted as promising investments. Each of these companies has shown strong growth potential and positive earnings estimate revisions, making them attractive options for investors looking to capitalize on the crypto market's future growth.

Key Points

• Peter Schiff argues that Bitcoin has been in a prolonged decline when measured against gold, with a 24% drop in value since its peak in 2021.
• Schiff questions Bitcoin's role as an inflation hedge, suggesting it behaves more like a stock than a commodity like gold.
• He dismisses the idea of a U.S. Strategic Bitcoin Reserve, questioning the logic behind it and the crypto industry's lobbying efforts.

Summary

Peter Schiff, a well-known gold advocate and Bitcoin skeptic, has once again criticized Bitcoin, this time focusing on its performance relative to gold. Schiff highlighted that Bitcoin's value in terms of gold has decreased by 24% since its peak in 2021, suggesting that Bitcoin has been in a "stealth bear market" for over three years. He challenges Bitcoin's status as a hedge against inflation, arguing that its high correlation with stock market indices like the NASDAQ makes it more akin to a digital stock than digital gold. Schiff also questions the feasibility and logic behind the idea of a U.S. Strategic Bitcoin Reserve, pointing out the lack of government interest in Bitcoin and criticizing the crypto industry's lobbying efforts for creating unrealistic expectations. His comments coincide with gold reaching a historic high of $3,000 per ounce, while Bitcoin struggles to maintain above $80,000, reflecting broader market trends where investors are turning to gold amid economic uncertainties.

Key Points

• Russia uses cryptocurrencies like bitcoin, ether, and stablecoins to bypass Western sanctions in its $192 billion oil trade with China and India.
• The Bank of Russia proposes a three-year experimental legal regime (ELR) for a limited group of investors to trade cryptocurrencies.
• Crypto transactions currently represent only a small fraction of Russia's oil trade, with fiat currencies still being the primary method.
• Other sanctioned countries like Iran and Venezuela also use crypto to maintain trade without relying on the U.S. dollar.
• Russia is exploring the use of a digital ruble to further navigate around sanctions.

Summary

Russia has increasingly turned to cryptocurrencies to circumvent Western sanctions in its oil trade with China and India, according to Reuters. The country is employing digital currencies like bitcoin, ether, and stablecoins such as Tether (USDT) to convert payments in Chinese yuan and Indian rupees into roubles. Despite these efforts, crypto transactions still make up only a minor part of Russia's oil trade, with traditional fiat currencies remaining the dominant method. The Bank of Russia has proposed a three-year experimental legal regime to allow a select group of investors to engage in cryptocurrency trading, signaling a deeper integration into the crypto space. This move is part of a broader strategy that includes the development of multiple payment systems to navigate around sanctions. Other nations under sanctions, like Iran and Venezuela, have similarly adopted cryptocurrencies to bypass reliance on the U.S. dollar. Russia's exploration into digital currencies extends to considering a digital ruble, which could serve as another tool against sanctions, reflecting a long-term strategy to maintain economic flexibility and resilience.

Key Points

• Blockchain technology has potential beyond finance, particularly in intellectual property (IP) management.
• Story Protocol aims to revolutionize IP management with "Programmable IP," allowing instant licensing and automatic royalty payments.
• The IP market is valued at $70 trillion but is currently inefficient, with complex legal processes for licensing.
• Story Protocol has attracted significant investment from major crypto funds like Andreessen Horowitz and is onboarding high-profile IPs like BTS and Justin Bieber.

Summary

Blockchain technology, while transformative in finance, has yet to significantly impact other sectors, particularly intellectual property (IP). Jason Zhao, CEO of Story Protocol, sees IP as the next big area for blockchain application. He describes the current IP market, valued at $70 trillion, as inefficient, where even simple licensing requires extensive legal negotiations. Story Protocol introduces "Programmable IP," a system where creators can instantly license their content and receive automatic payments when their IP is used. This system not only simplifies the licensing process but also ensures creators are fairly compensated. The initiative has garnered support from major investors like Andreessen Horowitz and is already engaging with high-profile IPs, including musicians like BTS and Justin Bieber, and notable screenwriters like David Goyer. This innovative approach aims to streamline and democratize the management of intellectual property, potentially transforming a massive industry.

Key Points

• The crypto market is currently experiencing extreme fear, with the CoinMarketCap fear and greed index at 19 out of 100.
• Bitcoin is trading at a significant discount from its all-time high, presenting a potential buying opportunity.
• Despite bearish predictions, Bitcoin has a history of recovering from major market declines.
• Increased institutional adoption and the potential for government investment through the Strategic Bitcoin Reserve are strong catalysts for future growth.

Summary

The cryptocurrency market is currently gripped by fear, with the CoinMarketCap fear and greed index at a low 19, indicating widespread pessimism among investors. Despite Bitcoin's price hovering around $83,000, which might seem high, it's actually a significant discount from its recent peak of $109,000. This dip could be one of the last chances to buy Bitcoin at a relatively low price, given its historical resilience. Over the past 15 years, Bitcoin has bounced back from substantial losses, often reaching new highs. The current bearish outlook, fueled by economic uncertainties like tariffs and potential recessions, contrasts with Bitcoin's strong fundamentals. Institutional adoption is on the rise, with over 1,000 large investors now holding Bitcoin through new ETFs, and the U.S. government's Strategic Bitcoin Reserve could further bolster its value. While short-term predictions are uncertain, the long-term outlook for Bitcoin remains positive, suggesting now might be a strategic time to invest.

Key Points

• Euler Finance, a crypto borrow and lend platform, has achieved new all-time highs in total value locked (TVL) and total borrows, signaling a strong recovery from a $200 million hack two years ago.
• The platform's new version, Euler V2, launched in September 2024, offers customizable lending pools, allowing users to adjust risk, yields, and asset parameters to fit their needs.

Summary

Euler Finance, a decentralized finance (DeFi) lending platform, has made a remarkable recovery from a devastating $200 million hack two years ago. The platform recently hit new all-time highs in total value locked (TVL) and total borrows, key indicators of its health and activity. Despite being significantly smaller than giants like Aave, Euler's resurgence is notable. After the hack, many doubted the project's future, but under the leadership of CEO Michael Bentley, the team rebuilt the protocol from the ground up. The new Euler V2, launched in September 2024, introduces a customizable borrowing hub, allowing users to tailor their lending pools' parameters, a stark contrast to its previous one-size-fits-all approach. Despite missing much of the 2024 DeFi surge due to extensive security reviews, Euler managed to attract users back with a modest incentives budget. The platform's growth continues even as the price of ether, a crucial asset for collateral, fluctuates, positioning Euler as one of the few lending protocols experiencing growth in active loans amidst market volatility.

Key Points

• Bankers and their allies in the US Senate are opposing the GENIUS Act due to fears of losing market share to stablecoins.
• The bill requires 60 votes to pass, necessitating bipartisan support which is currently uncertain.
• Senator Elizabeth Warren proposes an amendment to prevent tech firms from issuing stablecoins, highlighting the potential disruption to traditional banking.
• Stablecoins offer benefits like near-instant settlement and lower transaction fees, posing a competitive threat to banks.
• The US government sees stablecoins as a tool to extend dollar dominance and manage inflation.

Summary

The article discusses the opposition from traditional banks and their allies in the US Senate to the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The legislation, which requires 60 votes to pass, aims to regulate stablecoins but faces resistance due to concerns over market share erosion. Senator Elizabeth Warren has proposed an amendment to restrict tech firms from issuing stablecoins, emphasizing the potential disruption to the banking sector. Stablecoins are highlighted for their advantages in transaction speed and cost, which threaten the established banking systems. Despite this, figures like Federal Reserve Governor Christopher Waller and Bank of America CEO Brian Moynihan have shown interest in or support for stablecoins, recognizing their potential in expanding payment use cases and managing economic issues like inflation. The US government views stablecoins as a strategic tool to maintain the dollar's global reserve status.

Key Points

• Bybit CEO Ben Zhou commented on a $4 million loss by Hyperliquid due to a high-leverage trade, suggesting a dynamic risk mechanism to lower leverage as positions grow.
• Hyperliquid reduced leverage for Bitcoin to 40x and Ether to 25x to increase maintenance margin requirements for larger positions.
• Zhou noted that centralized exchanges (CEXs) face similar challenges with whale positions, suggesting that lower leverage might hurt business but is necessary for risk management.

Summary

On March 12, 2025, a trader on the decentralized exchange (DEX) Hyperliquid used 50x leverage to turn a $10 million investment into a $270 million Ether long position, resulting in a $4 million loss for the Hyperliquidity Pool (HLP) when the trader withdrew collateral without triggering a price drop. Bybit CEO Ben Zhou commented on this event, highlighting the challenges faced by both DEXs and centralized exchanges (CEXs) with high-leverage trades. In response, Hyperliquid adjusted its leverage limits, reducing Bitcoin leverage to 40x and Ether to 25x to mitigate risks associated with large positions. Zhou suggested implementing a dynamic risk mechanism that lowers leverage as positions grow, acknowledging that while this might deter some users, it's crucial for managing risk. He also pointed out that even with these measures, there's potential for abuse unless robust surveillance and monitoring systems are in place. Following the incident, Hyperliquid experienced a significant net outflow of $166 million.

Key Points

• Congress repealed the IRS broker rule, which required DeFi protocols to report gross proceeds from crypto sales and taxpayer information to the IRS.
• The crypto industry celebrated the repeal, citing privacy concerns and the rule's potential to push DeFi offshore.
• There is a need for clear regulatory frameworks that balance user privacy with Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements.
• DeFi's decentralized nature poses challenges for regulation, as there is no single entity to enforce traditional broker-dealer responsibilities.
• The industry anticipates a comprehensive crypto regulatory framework, with bills like FIT 21 and the GENIUS Act moving through Congress.

Summary

The decentralized finance (DeFi) sector has achieved a significant legislative victory with Congress voting to repeal an IRS rule that would have imposed stringent reporting requirements on DeFi protocols. This rule, set to be implemented in 2027, was seen as overly burdensome and an infringement on user privacy by major industry players. The repeal, supported by a bipartisan vote, reflects the ongoing tension between regulatory oversight and the privacy demands of the crypto community. Despite this win, the DeFi industry still lacks clear guidelines on how to balance privacy with necessary regulatory compliance like AML and KYC. The inherent decentralized structure of DeFi complicates traditional regulatory approaches, as there's no central entity to hold accountable. However, there's optimism about finding a middle ground, with suggestions like zero-knowledge proofs being floated as potential solutions. Meanwhile, broader crypto regulatory frameworks are in discussion, with bills like the GENIUS Act and FIT 21 moving forward, aiming to provide the industry with the necessary legal clarity to thrive while addressing investor protection and regulatory concerns.

Key Points

• Bitcoin-to-gold ratio breaks 12-year support as gold price hits a record $3K
• Bitcoin's bull market could be over if it stays under the gold trendline for a week or a month
• Gold ETFs see significant inflows while Bitcoin ETFs experience outflows
• Macroeconomic uncertainty and risk-off sentiment drive investors towards gold
• Bitcoin's correlation with Nasdaq suggests it's mirroring broader market trends

Summary

The article discusses a significant shift in the Bitcoin-to-gold ratio, which has broken a 12-year support trendline, coinciding with gold prices reaching a new record high above $3,000 per ounce. This breakdown suggests that Bitcoin's long-standing bull market might be at risk, especially if the ratio remains below the trendline for an extended period. The contrasting performance between Bitcoin and gold is highlighted by the substantial inflows into gold ETFs and outflows from Bitcoin ETFs, driven by macroeconomic uncertainties and aggressive trade policies by President Trump. These factors have pushed investors towards traditional safe-haven assets like gold, while Bitcoin, often dubbed "digital gold," has seen a decline in value. The article also notes Bitcoin's high correlation with the Nasdaq, indicating its alignment with broader market trends. Historical patterns suggest that if Bitcoin's price continues to decline, it could face significant corrections, potentially revisiting levels seen in previous bear markets. However, analysts remain cautiously optimistic, suggesting that a strong support level could still revive the bullish trend for Bitcoin.

Key Points

• FTX secretly liquidated $1.53 billion in Three Arrows Capital (3AC) assets two weeks before its collapse.
• 3AC was allowed by a court to pursue a full $1.53 billion claim against FTX in its bankruptcy case.
• The missing $1.5 billion might not have been enough to save 3AC from bankruptcy according to analysts.
• A British Virgin Islands court froze $1.14 billion of 3AC co-founders' assets.
• 3AC creditors are still owed approximately $3.3 billion.

Summary

Newly revealed court documents have disclosed that FTX, a major cryptocurrency exchange, liquidated $1.53 billion worth of assets belonging to Three Arrows Capital (3AC) just two weeks before the hedge fund's collapse in mid-2022. This liquidation was not previously known and challenges the narrative that 3AC's downfall was solely due to market conditions. 3AC, once valued at over $10 billion, had borrowed extensively from numerous institutions before the crypto market crash in May 2022, which saw Bitcoin plummet to $16,000. Despite the significant sum liquidated by FTX, analysts suggest that even this amount would not have been sufficient to prevent 3AC's bankruptcy. Following these events, a court allowed 3AC to increase its claim against FTX from $120 million to $1.53 billion, although the full recovery of this claim remains uncertain. Additionally, a British Virgin Islands court has frozen $1.14 billion in assets of 3AC's co-founders, and creditors are still owed around $3.3 billion. The situation has sparked curiosity and speculation within the crypto community, with Binance's former CEO questioning if FTX's actions might have influenced other significant crypto events around that time.

Key Points

• XRP's utility drives its value, with its network enabling fast and inexpensive international transfers.
• The coin's supply is reduced with each transaction, potentially increasing its value over time.
• XRP can track and trade real-world assets on the blockchain, enhancing its utility for banks and financial institutions.
• Potential approval of XRP ETFs could increase network volume and coin value.
• The U.S. government's Digital Asset Stockpile might reduce XRP's supply, supporting higher prices.

Summary

The article discusses why XRP (CRYPTO: XRP) is an attractive long-term investment, particularly for those willing to hold onto their investment for an extended period. XRP's value has surged over 1,370% in the last three years, but its future potential could be even more significant due to its unique utility. The primary driver of XRP's value is its ability to facilitate nearly instantaneous and very inexpensive international financial transfers, far surpassing traditional methods like SWIFT in both speed and cost. This utility not only incentivizes users to hold XRP but also attracts banks and financial institutions globally, increasing its network's utility with each new participant. Additionally, XRP's functionality extends to tracking and trading real-world assets on the blockchain, which could further enhance its appeal. The article also mentions upcoming catalysts like potential SEC approval of XRP ETFs and the U.S. government's Digital Asset Stockpile, which could further boost XRP's value by increasing transaction volume and reducing supply. These factors combined make XRP a compelling choice for long-term investment.

Key Points

• Ark Invest, led by Cathie Wood, has increased its Bitcoin holdings by purchasing 997 BTC worth $80 million through Coinbase on March 13.
• While adding Bitcoin, Ark Invest has also sold around $9 million worth of Bitcoin ETFs, following a trend where over $1.1 billion has exited spot Bitcoin ETFs recently.
• Bitcoin is currently struggling to break past $83,700, with fears of a potential drop to $75,000, but Cathie Wood remains confident in Bitcoin's future value.
• The Fear & Greed Index for Bitcoin has hit a two-year low, reflecting "extreme panic" not seen since 2017, yet there are signs of potential recovery with the Spent Output Profit Ratio (SOPR) resetting to 1.

Summary

Ark Invest, under the leadership of Cathie Wood, has recently bolstered its Bitcoin holdings by acquiring 997 BTC valued at $80 million through Coinbase. This acquisition was split into two transactions, reflecting a strategic move amidst market volatility. Despite this increase in direct Bitcoin investment, Ark Invest has also divested approximately $9 million in Bitcoin ETFs, aligning with a broader market trend where over $1.1 billion has been withdrawn from spot Bitcoin ETFs. Currently, Bitcoin faces resistance at around $83,700, with potential for a decline to $75,000, yet Wood remains optimistic, predicting Bitcoin could reach $1 million by 2030. Market sentiment is notably low, with the Fear & Greed Index indicating extreme panic, but there are signs of stabilization as the Spent Output Profit Ratio (SOPR) has reset, suggesting a possible recovery. Ark's analysis attributes the current market downturn to political uncertainty in the U.S., affecting consumer and business confidence.

Key Points

• Michael Saylor has built a Bitcoin empire by attracting retail and hedge fund investors, leading to the creation of a new crypto-investment complex.
• A new ETF, REX Bitcoin Corporate Treasury Convertible Bond ETF (BMAX), focuses on companies with Bitcoin on their balance sheets, making convertible bonds accessible to retail investors.
• Convertible bonds, which can convert into equity, are popular among institutional investors for their potential upside and interest payouts.
• The crypto issuers like Strategy, MARA, Riot, and Bitdeer have raised billions through convertible bonds, influencing the broader US convertibles market.
• The interconnected financial products around Strategy, including ETFs, have created a complex ecosystem that could be vulnerable to market fluctuations.

Summary

Michael Saylor's strategic pivot towards Bitcoin has not only transformed his company, Strategy, but also catalyzed the growth of a new crypto-investment landscape. His approach of issuing convertible bonds to fund Bitcoin purchases has been emulated by other firms, leading to a surge in the use of these financial instruments. The launch of the REX Bitcoin Corporate Treasury Convertible Bond ETF (BMAX) marks a significant step in making these investment vehicles accessible to retail investors, previously a domain dominated by institutional players. This ETF focuses on companies that hold Bitcoin, offering retail investors a chance to engage with the crypto market through an easily tradable fund. However, the complexity of these financial products, coupled with the inherent volatility of crypto assets, introduces risks, particularly credit risk, which could impact investors if issuers face financial difficulties. The ecosystem around Strategy has expanded, with various ETFs and financial products leveraging its success, potentially creating a feedback loop that could amplify both gains and losses in the market.