Crypto Markets Stabilize Amid Signs of Fed Rate Cuts, Trump’s Comments
The cryptocurrency market has shown signs of stabilization in recent days, with Bitcoin (BTC) price bouncing back to nearly $90K and the total crypto market cap rising to the $2.9 trillion mark. This upswing is attributed to comments from Commerce Minister Howard Lutnick, who said that President Donald Trump may announce a pathway for tariff relief on Canadian and Mexican imports covered by NAFTA.
Tariff Relief on the Horizon
The potential announcement of tariff relief has helped to alleviate fears of a trade war between the US, Canada, and Mexico. This has prompted a rebound in Bitcoin price, with many market analysts attributing this rise to renewed bets on Federal Reserve (Fed) rate cuts. The dollar index, which tracks the greenback’s value against major currencies, has dropped to its lowest level since November, establishing a downtrend.
Crypto Equities See Upticks
Notably, MicroStrategy (MSTR) shares have closed at $275.15 (+9.66%), up 3.83% at $285.80 in pre-market trading. Coinbase Global (COIN) also showed an uptick, closing at $212.55 (+3.3%). However, not all crypto equities are experiencing gains: Galaxy Digital Holdings (GLXY) closed at C$19.04 (-8.29%) and Riot Platforms (RIOT) closed at $8.41(-5.08%).
Derivatives Positioning Remains Light
Despite market stability signs, derivatives positioning in BTC and ETH CME futures remains light. However, this may be due to traders’ caution as they wait for further developments in the crypto space.
Technical Analysis Paints a Bullish Picture
The downtrend in the dollar index bodes well for riskier assets like cryptocurrencies. According to TradingView, BTC’s options-based implied volatility term structure shows a big bump higher on March 8, indicating traders’ expectations of Trump’s comments leading to volatile market conditions.
Market Movements: Up, Down, and Sideways
BTC is up 2.85% from 4 p.m. ET Tuesday at $90,063.44 (24hrs: +6.98%), while ETH is up 2.82% at $2,240.32 (24hrs: +6.11%). The CoinDesk 20 is down 4.37% at 2,938.93 (24hrs: +7.8%), and the Ether CESR Composite Staking Rate is up 29 bps at 3.36%.
Token Listings on Focus
Several tokens have been listed recently, including Just (JST) on HashKey and Roam (ROAM) on KuCoin and MEXC.
Chart of the Day: Implied Volatility Sees Rise
A graphical representation of implied volatilities at different expirations shows a big bump higher on March 8. This indicates traders’ expectations of market volatility around Trump’s comments at Friday’s White House Crypto summit.
While You Were Sleeping: M&A Deals, ETFs, and More
Metaplanet acquired 497 BTC in its latest purchase at $88,448 per BTC, bringing their total holdings to 2888 BTC. BlackRock’s spot Bitcoin ETF (IBIT) trading volume hit a high since mid-November despite price decline.
Key Moments: Trump Addresses Congress, China Sets Budget Growth Targets
President Donald Trump pledged to bring Greenland into the US and praised Elon Musk’s push for government waste reduction in his address to Congress. Meanwhile, China set a 2025 budget deficit target of 4% GDP and lowered its consumer inflation target to around 2%.
The Dollar Falls Amid Fears Over U.S. Economic Outlook
Concerns over trade policy turmoil, economic weaknesses, and inflation led the dollar to slide to its lowest level in weeks.
Please note that this article is based on real-time data and may have changed slightly since it was posted