What to know: By Omkar Godbole (All times are ET unless indicated otherwise) The crypto market is looking to regain poise, with bitcoin bouncing above $81,000 ahead of tomorrow's U.S. inflation report. Broadly speaking, the recovery from overnight lows is led by layer-1 and layer-2 coins, with gaming tokens also rising. |
The rebound comes amid indications of "peak fear" on Wall Street, a dynamic typically observed at market bottoms. Interestingly, the spread between one- and six-month futures tied to the VIX, Wall Street’s so-called fear gauge, crossed above zero on Monday, signaling a rare positive reading and reflecting expectations for greater volatility in the short-term than six months out. Volmex's Bitcoin volatility index shows a similar inversion, although that is more common in the crypto market. "Is the worst behind us? It’s impossible to say," noted Ilan Solot, senior global market strategist at Marex Solutions, in an email to CoinDesk. "However, the risk-reward for entering long positions in U.S. stocks is improving. The VIX index for volatility is now significantly inverted, meaning near-term contracts are priced higher than long-term ones. This is an important sign of stress, but it can also indicate extremes in sentiment." Meanwhile, bullish positioning in the yen appears stretched, suggesting the haven currency's rally may soon lose steam, potentially providing relief to risk assets in the process. The Truflation U.S. Inflation Index, which offers a daily, real-time measurement of inflation based on data from over 30 sources and 13 million price points, has dropped to 1.35%, extending a decline from February's high of over 2%. This trend hints at the progress on inflation the Federal Reserve is looking for before considering rate cuts. On Wednesday, the Bureau of Labor Statistics is expected to show a month-over-month increase of 0.3% for February. This would be a notable deceleration from January's concerning 0.5%. A soft reading could validate traders' expectations for rapid rate cuts starting in June, possibly leading to renewed risk-on sentiment. However, it’s important to note that Chairman Jerome Powell has indicated the Fed is waiting for clarity on President Trump’s policies before making its next move, suggesting that soft CPI data alone might not be enough. On the other hand, a hotter-than-expected CPI print could derail recovery prospects, potentially setting the stage for a deeper slide in bitcoin and the broader crypto market. Some analysts even predict bitcoin could drop to $74,000. "A bearish pattern persists on the daily timeframes, indicating a strengthening sell-off after failing to hold above the 200-day moving average. The scenario of a pullback to the $70,000 to $74,000 range still looks most probable," said Alex Kuptsikevich, senior market analyst at FxPro, in an email to CoinDesk. Stay alert! |
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Crypto March 11, 9:00 a.m.: Horizen (ZEN) mainnet network upgrade to version ZEN 5.0.6 at block height 1,730,680. March 11, 10:00 a.m.: U.S. House Financial Services Committee hearing about a federal framework for stablecoins and a CBDC. Livestream link. March 11: The Bitcoin Policy Institute and Senator Cynthia Lummis co-host the invitation-only one-day "Bitcoin for America" event in Washington. March 12: Hemi (HEMI), an L2 blockchain that operates on both Bitcoin and Ethereum, has its mainnet launch. March 15: Athene Network (ATH) mainnet launch. March 15: Reploy will close its V1 RAI staking program to new users as it transitions to a fully automated revenue-sharing protocol. March 17.: CME Group launches solana (SOL) futures. March 18: Zano (ZANO) hard fork network upgrade which activates “ETH Signature support for off-chain signing and asset operations.” March 20: Pascal hard fork network upgrade goes live on the BNB Smart Chain (BSC) mainnet.Macro March 11, 8:00 a.m.: The Brazilian Institute of Geography and Statistics (IBGE) releases January industrial production data.Industrial Production MoM Est. 0.4% vs. Prev. -0.3% Industrial Production YoY Est. 2.2% vs. Prev. 1.6%March 11, 10:00 a.m.: The U.S. Department of Labor releases January’s JOLTs report (job openings, hires, and separations).Job Openings Est. 7.75M vs. Prev. 7.6M Job Quits Prev. 3.197MMarch 12, 4:45 a.m.: European Central Bank President Christine Lagarde gives a speech at the 25th “ECB and Its Watchers” conference in Frankfurt. March 12, 8:00 a.m.: The Brazilian Institute of Geography and Statistics (IBGE) release February consumer price inflation data.Inflation Rate MoM Est. 1.3% vs. Prev. 0.16%Inflation Rate YoY Est. 5% vs. Prev. 4.56% March 12, 8:30 a.m.: The U.S. Bureau of Labor Statistics (BLS) releases February consumer price inflation data.Core Inflation Rate MoM Est. 0.3% vs. Prev. 0.4%Core Inflation Rate YoY Est. 3.2% vs. Prev. 3.3% Inflation Rate MoM Est. 0.3% vs. Prev. 0.5%Inflation Rate YoY Est. 2.9% vs. Prev. 3% March 12, 9:45 a.m.: The Bank of Canada announces its interest rate decision followed by a press conference (livestream link) 45 minutes later.Policy Interest Rate Est. 2.75% vs. Prev. 3%March 12, 12:00 p.m.: Russia's Federal State Statistics Service release February consumer price inflation data. Inflation Rate MoM Est. 0.8% vs. Prev. 1.2%Inflation Rate YoY Est. 10.1% vs. Prev. 9.9%Earnings (Estimates based on FactSet data) March 17 (TBC): Bit Digital (BTBT), $-0.05March 18 (TBC): TeraWulf (WULF), $-0.04 March 24 (TBC): Galaxy Digital Holdings (TSE: GLXY), C$0.39 |
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| GMX DAO is voting on the decentralization and automation of the fee distribution process for the GMX ecosystem to ensure “real-time, trustless, and verifiable fee allocations.” Frax DAO is discussing upgrading the protocol by renaming FXS to FRAX, making it the gas token on Fraxtal, implementing the Frax North Star hard fork, and introducing a tail emission plan with gradually decreasing emissions and other enhancements. Uniswap DAO is discussing continuing treasury delegation to maintain governance stability and retain active delegates, including a renewed framework and structure expiration and allocation mechanisms. March 13, 10 a.m.: Mantra to host a Community Connect call with its CEO and Co-Founder to discuss various major updates. |
| March 12: Aptos (APT) to unlock 1.93% of circulating supply worth $63.33 million. March 15: Sei (SEI) to unlock 1.19% of its circulating supply worth $10.65 million.March 16: Arbitrum (ARB) to unlock 2.1% of its circulating supply worth $30.76 million.March 18: Fasttoken (FTN) to unlock 4.66% of its circulating supply worth $80 million.March 21: Immutable (IMX) to unlock 1.39% of circulating supply worth $12.29 million. |
| March 11: Bybit to delist Bancor (BNT), Paxos Gold (PAXG), and Threshold. March 11: Cookie DAO (COOKIE) to be listed on Coinbase.March 11: PancakeSwap is retiring its crypto options product.March 11: Mystery (MERY) was listed on the Crypto.com app. March 31: Binance to delist USDT, FDUSD, TUSD, USDP, DAI, AEUR, UST, USTC, and PAXG. |
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By Shaurya Malwa 📍Grok Coin, a token inspired by, but not officially affiliated with, xAI’s Grok AI, was launched on Base using trading mechanisms from Bankr and Clanker. The token’s AI-controlled wallet reportedly amassed over $200K in fees in the hours after going live. 📍It was further amplified by the official Base account on X, which posted, “icymi, @grok launched a token on Base,” and framing it as a futuristic step where “AI is owning wallets, making markets, and generating revenue.” This gave the impression of an endorsement from Base’s leadership. 📍The post prompted Base developers like Kawz, the founder of Time.fun, to express frustration over the lack of recognition for their own projects. 📍Calling the GrokCoin post unfair and selective, Kawz noted they'd spent months building an app on Base without a single tweet from @base. |
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| ETH CME futures basis has dropped to an annualized 5%, the lowest since July.BTC's basis has stabilized between 5% and 10% in a positive sign for the market.BTC options show a similar expectation pattern to gold, while ETH and other cryptocurrencies are similar to the expectation patterns of equities investors, data tracked by BloFin Academy show. BTC and ETH risk reversals show bias for protective puts out to the May end expiry.The $100K strike call is now the most popular BTC option on Deribit, as opposed to the $120K call a few weeks ago. |
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| BTC is up 2.87% from 4 p.m. ET Monday at $81,425.03 (24hrs: -0.93%)ETH is up 2.84% at $1,917.00 (24hrs: -8.65%)CoinDesk 20 is up 3.05% at 2,531.70 (24hrs: -3.66%)Ether CESR Composite Staking Rate is up 10 bps at 3.11%BTC funding rate is at 0.0001% (0.1% annualized) on Binance |
| DXY is down 0.38% at 103.44Gold is up 0.66% at $2,911.70/ozSilver is up 1.12% at $32.49/ozNikkei 225 closed -0.64% at 36,793.11Hang Seng closed unchanged at 23,782.14FTSE is down 0.25% at 8,578.37Euro Stoxx 50 is up 0.48% at 5,413.02DJIA closed on Monday -2.08% at 41,911.71S&P 500 closed -2.7% at 5,614.56Nasdaq closed -4% at 17,468.32S&P/TSX Composite Index closed -1.53% at 24,380.71S&P 40 Latin America closed -2.73% at 2,297.38U.S. 10-year Treasury rate is down 4 bps at 4.21%E-mini S&P 500 futures are down 0.28% at 5636.50 E-mini Nasdaq-100 futures are down 0.41% at 19533.25E-mini Dow Jones Industrial Average Index futures are down 0.21% at 42,036.00 |
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| BTC Dominance: 61.95 (-0.24%)Ethereum to bitcoin ratio: 0.02354 (-0.80%)Hashrate (seven-day moving average): 814 EH/sHashprice (spot): $45.2Total Fees: 5.3 BTC / $429,994CME Futures Open Interest: 141,395 BTCBTC priced in gold: 28.2 ozBTC vs gold market cap: 8.01% |
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| Bitcoin's RSI has carved out a higher low, hinting at a bullish divergence or positive shift in momentum.Traders, who rely on charts, may feel tempted to try out longs as prices are close to the key support of the March 2024 high of $73,757, offering an attractive risk-reward.That, in turn, might see the recovery gather pace. |
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| Strategy (MSTR): closed on Monday at $239.27 (-16.68%), up 4.57% at $250.20 in pre-marketCoinbase Global (COIN): closed at $179.23 (-17.58%), up 4.09% at $186.55Galaxy Digital Holdings (GLXY): closed at C$17.46 (-7.32%)MARA Holdings (MARA): closed at $13.41 (-16.29%), up 1.34% at $13.59Riot Platforms (RIOT): closed at $7.56 (-9.68%), up 2.51% at $7.75 Core Scientific (CORZ): closed at $8.01 (+2.96%), up 3.62% at $8.30CleanSpark (CLSK): closed at $7.98 (-9.63%), up 1.5% at $8.10CoinShares Valkyrie Bitcoin Miners ETF (WGMI): closed at $14.48 (-11.27%), up 3.04% at $14.92Semler Scientific (SMLR): closed at $32.74 (-11.97%), unchanged in pre-market Exodus Movement (EXOD): closed at $24.60 (-16.33%), down 5.65% at $23.21 |
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| Daily net flow: -$278.4 millionCumulative net flows: $35.93 billionTotal BTC holdings ~ 1,122 million. |
| Daily net flow: -$34 millionCumulative net flows: $2.69 billionTotal ETH holdings ~ 3.579 million. |
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The chart shows the spread between yields on the 10-year U.S. and Japanese government bond yields. The spread has narrowed sharply of late, diving out of a five-year-long uptrend line. The narrowing of the yield spread favors strength in the anti-risk Japanese yen. |
📃 Latest Draft of U.S. Stablecoin Bill Aims to Split Power Between State and Federal Authorities(CoinDesk): States can oversee stablecoin issuers with a market cap under $10 billion, while larger issuers may remain under state supervision if they meet certain criteria. 💹 Bitcoin and Nasdaq Could Stabilize as Bull Positioning in Yen Appears Stretched (CoinDesk): Overstretched bullish bets on the yen could trigger a reversal, offering relief to risk assets, though the currency’s broader uptrend remains supported by a narrowing U.S.-Japan bond yield gap. 🐋 Dormant Ether Whale Moves $13M in ETH to Kraken (CoinDesk): A wallet that has held ether since the cryptocurrency’s inception moved 7,000 ETH to Kraken after five months of inactivity, as ETH’s price hit its lowest level since October 2023. 📉 Citi Downgrades US Stocks, Raises China as America First Fades (Bloomberg): Citigroup downgraded U.S. equities to neutral, citing expectations for "more negative US data prints," while upgrading China to overweight due to attractive valuations and government support for the tech sector. 🇺🇦 Ukraine Hits Moscow With Largest Drone Attack Hours Before Talks (The Wall Street Journal): Ahead of a high-level U.S.-Ukraine meeting in Saudi Arabia, Kyiv carried out its largest drone strike on the Russian capital, escalating tensions as discussions on potential peace efforts loom. 🌎 Global Markets Steady After Slowdown Fears Hit Wall Street(Financial Times): Stocks steadied globally as investors reassessed recession concerns following sharp Wall Street losses, while European defense and infrastructure shares continued to gain on expectations of increased government spending. |
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CoinDesk Disclosure: The information contained in this newsletter, and any information linked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. You should seek additional information regarding the merits and risks of investing in any cryptocurrency or digital assets. |
L1.co Disclosure: This material is for informational purposes only, and the content contained herein should not be considered investment advice or a solicitation, offer, or recommendation to sell or buy any asset, strategy, or product. Investing in digital assets involves a high degree of risk, including the loss of principal. |
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