The GENIUS stablecoin bill is a CBDC trojan horse — DeFi exec
The recent GENIUS stablecoin bill is merely a thinly veiled attempt to usher in central bank digital currency (CBDC) controls through privatized means, according to Jean Rausis, co-founder of the Smardex decentralized trading platform.In a statement shared with Cointelegraph, Rausis said that the US government will punish stablecoin issuers that do not comply with the new regulatory framework, similar to the European Union Markets in Crypto-Assets (MiCA) regulations. The executive added:“The government realizes that if they control stablecoins, they control financial transactions. Working with centralized stablecoin issuers means they can freeze funds anytime they want — essentially what a CBDC would allow. So, why bother creating a CBDC?”“With stablecoins under the government’s control, the result is the same, with the false veneer of decentralization added as a bonus,” the executive continued.Decentralized alternatives to centralized stablecoins, such as algorithmic stablecoins and synthetic dollars, will prove to be a valuable bulwark against this creeping government control over crypto, Rausis concluded.First page of the GENIUS Act. Source: United States SenateRelated: America must back pro-stablecoin laws, reject CBDCs — US Rep. EmmerRevamped GENIUS bill to include stricter provisionsThe Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, introduced by Tennessee Senator Bill Hagerty on Feb. 4, proposed a comprehensive framework for overcollateralized stablecoins such as Tether’s USDt (USDT) and Circle’s USDC (USDC).The bill was revamped to include stricter Anti-Money Laundering, reserve requirements, liquidity provisions and sanctions checks on March 13.These additional provisions will presumably give US-based stablecoin issuers an edge over their offshore counterparts.During the recent White House Crypto Summit, US Treasury Secretary Scott Bessent said the US would use stablecoins to ensure US dollar hegemony in payments and protect its role as the global reserve currency.Largest holders of US government debt. Source: Peter RyanCentralized stablecoin issuers rely on US bank deposits and short-term cash equivalents such as US Treasury bills to back their digital fiat tokens, which drives up demand for the US dollar and US debt instruments.Stablecoin issuers collectively hold over $120 billion in US debt — making them the 18th-largest buyer of US government debt in the world.Magazine: Bitcoin payments are being undermined by centralized stablecoins
Price analysis 3/12: BTC, ETH, XRP, BNB, SOL, ADA, DOGE, PI, LEO, HBAR
Bitcoin (BTC) bounced from $76,606 on March 11, but the bulls could not sustain the price above $84,500 on March 12. Nansen principal research analyst Aurelie Barthere told Cointelegraph that Bitcoin is in a macro correction in a bull market, with the next crucial level being “$71,000-$72,000, top of the pre-election trading range.”Glassnode also projected a similar target in its March 11 market report. The onchain analytics firm said the recent sell-off had been triggered by the short-term holders who may have purchased near the peak in January. Glassnode added that Bitcoin could bottom out near $70,000 if selling persists.Crypto market data daily view. Source: Coin360It is not only the crypto markets; even the US stock market has been under pressure in the past few days. However, a silver lining for the bulls is that the US Dollar Index (DXY) has corrected from its multi-year high above 110 to under 104. Bitcoin generally moves in inverse correlation with the dollar, suggesting that a bottom may be around the corner.Could Bitcoin retest the support at $76,606 or rise above $85,000? What are the important support and resistance levels to watch out for in altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.Bitcoin price analysisBitcoin broke below the $78,258 level on March 10 and fell to $76,606 on March 11, but the bears could not sustain the lower levels. This suggests solid buying by the bulls.BTC/USDT daily chart. Source: Cointelegraph/TradingViewThe relief rally is facing selling near the 20-day exponential moving average ($87,262), but a minor positive in favor of the bulls is that the relative strength index (RSI) is showing a positive divergence. Buyers will have to drive the price above the 20-day EMA to suggest that the correction could be ending. The BTC/USDT pair may then ascend to the 50-day simple moving average ($94,654).On the downside, the bulls are expected to defend the $73,777 level with all their might because a break below it may sink the pair to $67,000.Ether price analysisEther (ETH) fell below the $1,993 support on March 9 and extended the decline, reaching $1,754 on March 11.ETH/USDT daily chart. Source: Cointelegraph/TradingViewThe bulls are trying to start a recovery, which is expected to face significant resistance at the breakdown level of $2,111. If the price turns down sharply from $2,111, it will signal that the bears have flipped the level into resistance. That heightens the risk of a break below $1,754. The ETH/USDT pair may then slump to $1,500.Conversely, a break above the 20-day EMA ($2,235) suggests that the markets have rejected the break below $2,111. The pair may then climb to $2,800, where the bears are expected to step in.XRP price analysisXRP (XRP) fell below the $2 support on March 11, but the bears could not sustain the lower levels, as seen from the long tail on the candlestick.XRP/USDT daily chart. Source: Cointelegraph/TradingViewThe bears are trying to stall the recovery at the 20-day EMA ($2.35). If the price continues lower, the possibility of a break below $2 increases. If that happens, the XRP/USDT pair will complete a bearish head-and-shoulders pattern. There is minor support at $1.77, but if the level cracks, the decline could extend to $1.28.Contrary to this assumption, if the price breaks above the 20-day EMA, the pair could rise to the 50-day SMA ($2.58) and later to $3. BNB price analysisBNB (BNB) turned up from $507 on March 11, indicating that the bulls are aggressively defending the $500 to $460 support zone.BNB/USDT daily chart. Source: Cointelegraph/TradingViewThe relief rally is expected to face selling at the 20-day EMA ($592). If the price turns down sharply from the 20-day EMA, the bears will try to sink the BNB/USDT pair below $500. The pair may drop to $460 if they can pull it off.Instead, if the price rises above the 20-day EMA, it will signal that the pair may remain inside the $460 to $745 range for a while longer. The bulls will be back in the driver’s seat on a break and close above the 50-day SMA ($628).Solana price analysisSolana (SOL) turned up from $112 on March 11, signaling that the bulls are fiercely defending the $110 support.SOL/USDT daily chart. Source: Cointelegraph/TradingViewThe RSI shows early signs of forming a positive divergence, indicating that the bearish momentum could weaken. The first sign of strength will be a break and close above the 20-day EMA ($145). If the price turns down from the current level or the 20-day EMA, it suggests that every minor rally is being sold into. That increases the risk of a break below $110. The SOL/USDT pair could tumble to $98 and subsequently to $80.Cardano price analysisCardano (ADA) rebounded off the uptrend line on March 11, suggesting that the bulls are trying to stop the decline.ADA/USDT daily chart. Source: Cointelegraph/TradingViewThe bears are unlikely to give up easily and are expected to sell at the moving averages. If the price turns down from the moving averages, it will signal selling on rallies. The bears will then try to strengthen their position by pulling the price below the uptrend line. If they do that, the ADA/USDT pair could drop to $0.60 and then to $0.50.Contrary to this assumption, a break and close above the moving averages suggests that the bulls are back in the game. The pair may then rally to $1.02.Dogecoin price analysisDogecoin (DOGE) continued its slide and reached the $0.14 support on March 11. The bulls are trying to defend the level but may face selling at higher levels.DOGE/USDT daily chart. Source: Cointelegraph/TradingViewIf the price turns down from the 20-day EMA ($0.20), it will suggest that the sentiment remains negative and traders are selling on rallies. That increases the risk of a break below $0.14. The DOGE/USDT pair may descend to $0.10 if that happens.Related: Here’s what happened in crypto todayOn the contrary, a break and close above the 20-day EMA suggests that the bears are losing their grip. The pair could climb to the 50-day SMA ($0.25), which may pose a solid challenge again.Pi price analysisPi (PI) is taking support at the 61.8% Fibonacci retracement level of $1.20, indicating buying at lower levels.PI/USDT daily chart. Source: Cointelegraph/TradingViewThe relief rally is expected to face resistance at the 20-day EMA ($1.69) and then again at $2. If the price turns down from the overhead resistance, the PI/USDT pair could range between $2 and $1.20 for some time.A break and close above $2 suggests that the correction may be over. The pair could rally to $2.40. Alternatively, a break and close below $1.20 could sink the pair to the 78.6% retracement level of $0.72.UNUS SED LEO price analysisUNUS SED LEO (LEO) has been consolidating just below the $10 level for several days, indicating that the bulls are holding on to their positions as they anticipate another leg higher.LEO/USD daily chart. Source: Cointelegraph/TradingViewThe LEO/USD pair has formed an ascending triangle pattern, which will complete on a break and close above $10. If that happens, the pair could resume the uptrend toward the target objective of $12.04.This positive view will be invalidated in the near term if the price turns down and breaks below the uptrend line. That will negate the bullish setup, starting a drop to $8.84 and later to $8.30.Hedera price analysisHedera (HBAR) bounced off the $0.17 support on March 11, indicating that the bulls are aggressively defending the level.HBAR/USDT daily chart. Source: Cointelegraph/TradingViewThe recovery is facing selling at the 20-day EMA ($0.22), as seen from the long wick on the candlestick. If the price continues lower, the bears will make one more attempt to sink the HBAR/USDT pair below $0.17. If they succeed, the pair could plunge to $0.12.Contrarily, a break above the 20-day EMA suggests that the selling pressure is reducing. The pair could rise to the downtrend line, which is an important level to watch out for. If buyers push the price above the downtrend line, the pair could rally to $0.29.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Bitcoin battles US sellers as CPI inflation sees first drop since mid-2024
Bitcoin (BTC) saw a classic Wall Street sell-off on Mar. 12 as bears tempered a welcome US inflation slowdown.BTC/USD 1-hour chart. Source: Cointelegraph/TradingViewBTC price reverses at key bull market trendlineData from Cointelegraph Markets Pro and TradingView showed BTC/USD reaching three-day highs of $84,437 on Bitstamp before reversing.The January print of the US Consumer Price Index (CPI) came in below expectations at 2.8%, per data from the Bureau of Labor Statistics (BLS), hinting at slowing inflation.“Core CPI inflation FALLS to 3.1%, below expectations of 3.2%,” trading resource The Kobeissi Letter added in part of a response on X. “This marks the first decline in both Headline and Core CPI since July 2024. Inflation is cooling down in the US.”US CPI 12-month % change. Source: BLSHowever, the good news was short-lived as the start of Wall Street trading saw the return of characteristic selling pressure across crypto markets.Bitcoin thus fell to $82,400 before consolidating, at the time of writing, circling the daily open.In his latest market observations, popular trader and analyst Rekt Capital saw reason for cautious optimism on BTC price performance.“The latest Bitcoin Daily Close means that price has began the process of exiting its recently filled CME Gap after turning it into support,” he told X followers, referring to the difference between session closing and opening levels on CME Group’s Bitcoin futures — a common short-term price influence.“Any dips into the top of the CME Gap would constitute a post-breakout retest attempt to fully confirm the exit from this CME Gap. Initial signs of that retest occurring already.”CME Group Bitcoin futures 1-day chart. Source: Rekt Capital/XFellow trader Daan Crypto Trades focused on the 200-day simple and exponential moving averages (SMA/EMA) — classic bull market support trendlines currently at $83,550 and $85,650, respectively.“Bulls got work to do here to get back above the Daily 200MA/EMA. Last year we had the same thing and price chopped around these levels for 3+ months,” part of his latest X analysis noted.BTC/USD 1-day chart with 200SMA, 200EMA. Source: Cointelegraph/TradingViewBitcoin ETF outflows point to “growing caution”Continuing on the macro theme, trading firm QCP Capital suggested that the day’s CPI print could weigh on the Federal Reserve’s interest rates decision next week.Related: Bitcoin whales hint at $80K ‘market rebound’ as Binance inflows cool“With inflation concerns lingering and macro risks mounting, the CPI print will be a key determinant of whether the disinflationary trend will hold, or volatility intensifies in the near term,” it wrote in its latest “Asia Color” market update.QCP saw $82,000 solidifying as support, while institutional investor trends warranted caution.“Meanwhile, Bitcoin ETFs saw a significant net outflow of $153.87 million, led by Grayscale’s Bitcoin Trust (GBTC), which recently offloaded 641 BTC, valued at $56.45 million,” it concluded, referencing netflows from the US spot Bitcoin exchange-traded funds (ETFs). “This brought GBTC’s total holdings down to 195,746 BTC, worth around $17.24 billion. This signals growing caution among institutional investors.”US spot Bitcoin ETF netflows (screenshot). Source: Farside InvestorsThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Memecoins—from internet jokes to crypto’s cultural engine
Opinion by: Sasha Ivanov, founder of Waves and Units.NetworkNot long ago, the idea that an internet joke could become a multibillion-dollar asset class seemed laughable. Today, memecoins are not just mainstream. They are reshaping entire market cycles. The US now has an official memecoin associated with the president. What started as a niche community experiment has become a financial force too big to ignore.This isn’t simply speculation. In November 2024, memecoins accounted for 65% of the total trading volume on the decentralized exchange Raydium, an all-time high. Once dismissed as internet gimmicks, these assets have become crypto’s cultural engine. This phenomenon has been causing a slight identity crisis for believers and skeptics, who need to rethink their positions. Whether viewed as the next retail-driven market movement or an unsustainable mania, one thing is clear: Memecoins are no longer a joke.Memecoins are more than speculationAt their core, memecoins thrive on community belief. Traditional financial assets derive value from utility, institutional adoption or revenue models. Memecoins, by contrast, are driven by social engagement, virality and the power of collective momentum.That makes them one of the most effective onboarding tools for retail investors in crypto. Memecoins strip away the complexity of blockchain technology, making digital assets approachable, familiar and culturally relevant. For many, they are the first step into Web3, opening the door to decentralized trading, governance and finance.What makes them accessible, however, also makes them volatile. The same market mechanics that send memecoins soaring to billion-dollar valuations overnight can just as easily cause them to collapse within days. While one trader might turn $66 into a $3 million profit, thousands of others end up holding worthless tokens when the hype fades.The volatility problem no one can ignoreThe numbers tell the story. When Elon Musk changed his X username and profile picture, a memecoin linked to him skyrocketed to a $380 million market cap. Once Musk reversed the changes, the coin plunged to $100 million before plummeting even further.Recent: ‘Memecoins are archetypes of the collective unconscious’ This is not an exception. This is the memecoin market in action. It is unpredictable, profit-driven and fueled by speculation. While some traders thrive in this environment, most do not. The skeptics argue that memecoins are little more than a casino with a blockchain — a game where few win and most lose.Dismissing memecoins outright ignores a larger reality. Memecoins aren’t going away, regardless of the skepticism. They are shaping market trends. The real question is: Can memecoins transition from hype-driven speculation to a structured financial asset with governance and longevity?Governance is the key to long-term survivalIf memecoins are to evolve beyond short-term trading cycles, governance must take center stage. Decentralized autonomous organizations (DAOs) offer a model that allows holders to shape token supply, enforce transparency and influence project direction to give memecoins a real shot at sustainability.This structure prevents centralized control by developers and whales, reducing the risk of insider manipulation, exit scams and pump-and-dump schemes. It also ensures that memecoins can integrate treasury management, staking incentives and token supply models that promote long-term viability rather than short-lived speculation.A prime example is Floki Inu (FLOKI), a memecoin that successfully built a functional ecosystem beyond meme-driven trading. Rather than relying on short-term speculation, Floki Inu integrated non-fungible token (NFT) gaming, payments and educational initiatives, proving that memecoins can evolve into structured, community-driven assets.Memecoins don’t need to abandon their cultural origins, but to survive beyond the current hype cycle, they must adopt governance mechanisms that promote economic sustainability.Memecoins are at a crossroadsMemecoins have divided the crypto space into two extreme camps. On one side, memecoin maximalists insist that this bull market will be dominated by memecoins, arguing that belief and virality alone are enough to sustain them. On the other, skeptics dismiss them entirely, viewing them as pump-and-dump schemes that will eventually implode.Both perspectives miss the bigger picture. Memecoins have proven their ability to drive market activity, but ignoring their risks is just as reckless as dismissing them outright. The real challenge is not whether memecoins should exist. They already do. The question is how to structure them to ensure security for investors, stability for the market and long-term credibility for the industry.Builders, regulators and communities must collaborate to balance decentralization and responsible governance. Ignoring memecoins as a passing trend would be shortsighted. Failing to address their risks could be even worse — potentially leading to a catastrophic collapse that damages public trust in crypto as a whole.Memecoins are here to stay. The real test is whether they will remain a speculative rollercoaster or mature into a legitimate digital economy sector. The answer lies not just with traders but with the builders, developers and policymakers shaping blockchain’s future.Opinion by: Sasha Ivanov, founder of Waves and Units.Network.This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
US Bitcoin reserve vs. gold and oil reserves: How do they compare?
US reserves status quo: Gold, oil and the emerging role of Bitcoin The US government has long relied on gold and oil as reserve assets, but with the growing institutional adoption of Bitcoin (BTC), its potential role as a strategic reserve has increased substantially. This possibility and potential of the Bitcoin strategic reserve have seen a major tailwind as the new administration took charge in the US in January 2025.While gold has historically backed monetary systems and oil remains a key economic and security asset, Bitcoin represents a new kind of digital reserve that challenges traditional financial paradigms. The United States holds substantial reserves in gold and oil, but its Bitcoin holdings are comparatively small and primarily acquired through asset seizures. As of the third quarter of 2024, the US holds approximately 8,133.46 metric tons of gold, valued at around $789. 87 billion (on March 8, 2025), making it the largest sovereign holder of gold reserves. These reserves have historically been used as a hedge against economic uncertainty and to back the dollar before the gold standard was abandoned in 1971.In the case of oil, the US maintains a Strategic Petroleum Reserve (SPR), which, as of August 2024, holds around 372 million barrels. The SPR was established in the 1970s in response to the oil crisis and is valued at approximately $28 billion at current market prices. These reserves manage supply disruptions, control inflationary pressures, and stabilize energy markets during geopolitical crises.Bitcoin, unlike gold and oil, is not an official reserve asset, but the US government possesses a significant amount through confiscations. Estimates suggest the government controls roughly 200,000 BTC, worth around $15.90 billion at a Bitcoin price of $79,515 (as of March 10). However, unlike gold and oil, these holdings are not stored as strategic reserves but rather as assets pending auction or liquidation by the Department of Justice and the US Marshals Service. Liquidity and market dynamics of gold, oil and Bitcoin Gold, oil and Bitcoin each exhibit unique liquidity and market dynamics, with gold being the stablest, oil driven by geopolitical factors and Bitcoin characterized by high volatility and 24/7 accessibility.The depth of liquidity of an asset in a market is an extremely important indicator of the asset’s health. Typically, the higher the liquidity, the better the options investors have around pricing and risk management. Let’s understand how gold, oil and Bitcoin differ from each other in terms of liquidity and market dynamics:Gold: It remains one of the most liquid financial assets, with daily trading volumes exceeding $200 billion across futures markets, exchange-traded funds (ETFs) and over-the-counter (OTC) trades. Its deep liquidity and universal recognition make it a preferred asset for central banks, institutional investors and governments looking to hedge against inflation and currency fluctuations. While gold’s price varies, it has historically maintained lower volatility than most other assets.Oil: It is traded at immense volumes in both spot and futures markets, with daily future volumes reaching about 1 million barrels globally. Unlike gold, oil’s liquidity is largely tied to its industrial demand and geopolitical developments. The price of oil is highly sensitive to supply chain disruptions, the Organization of the Petroleum Exporting Countries (OPEC) decisions and macroeconomic policies. Given its role in energy markets, oil volatility is much higher than gold, with price swings that can result from political instability, production cuts or major conflicts.Bitcoin: Bitcoin, despite being a relatively new asset, is highly liquid, with daily trading volumes often exceeding $30 billion–$50 billion across global exchanges. While BTC has gained legitimacy among institutional investors, it remains significantly more volatile than gold and oil due to speculative demand, regulatory uncertainty and market structure. Unlike gold and oil, Bitcoin operates on a 24/7 trading cycle, making it unique in terms of accessibility and global liquidity. Storage and security concerns for reserve assets Storage and security concerns are crucial for any reserve asset, with each asset presenting unique challenges and costs.Gold: It is typically stored in highly secure facilities such as Fort Knox, the Federal Reserve Bank of New York and other vaults worldwide. The cost of storing gold varies, but large-scale sovereign reserves require substantial security infrastructure, transportation costs and insurance. Additionally, physical gold is vulnerable to theft and requires constant auditing to ensure authenticity and weight accuracy. Plus, custody fees for institutions storing gold in vaults range from 0.10% to 0.50% per year, depending on the storage provider.Oil: Unlike gold and Bitcoin, oil presents logistical challenges as it must be stored in underground salt caverns, refineries or tanker fleets. The cost of maintaining the Strategic Petroleum Reserve requires billions of dollars in infrastructure, maintenance and security. Moreover, oil storage is subject to depreciation due to environmental conditions, evaporation and contamination risks, making it more expensive to maintain than gold or Bitcoin.Bitcoin: Bitcoin storage differs fundamentally, as it is a digital asset. Governments and institutions typically use cold storage wallets and multisignature security to protect their holdings. While Bitcoin custody does not require physical storage facilities, cybersecurity risks such as hacking, private key mismanagement and regulatory oversight present major challenges. Institutional-grade custody solutions like BitGo, Fireblocks and Coinbase Custody charge anywhere from 0.05% to 0.25% per year, significantly lower than gold storage costs. However, the irreversibility of Bitcoin transactions increases the risks associated with mismanagement or unauthorized access. Strategic and economic role of reserve assets Gold, oil and Bitcoin each play strategic roles in global economics, with gold as a hedge, oil influencing geopolitical stability, and Bitcoin emerging as a decentralized asset for inflation protection.All of these assets have gained strategic and macroeconomic significance over time. Their narrative with relevance to the broader capital markets is perhaps what is needed to drive investors’ interest. Gold: Gold’s strategic role in the global economy dates back thousands of years, serving as a universal store of value and a medium of exchange. The US formally tied its currency to gold in the Bretton Woods system (1944–1971), which established the dollar as the world’s reserve currency backed by gold. Even after the US abandoned the gold standard in 1971, gold remained a key strategic asset held by central banks worldwide as a hedge against currency devaluation and inflation.Oil: It has evolved into an indispensable economic and security asset, with its price fluctuations directly impacting inflation, consumer spending and geopolitical stability. The formation of OPEC in 1960 and the subsequent oil crises in the 1970s demonstrated oil’s ability to drive inflation and shape economic policy. The petrodollar system, in which oil transactions are settled in US dollars, has further solidified oil’s role in global finance, ensuring sustained demand for the dollar and influencing US foreign policy.Bitcoin: BTC’s potential as a reserve asset lies in its decentralized nature, fixed supply (21 million BTC) and resistance to monetary debasement. Unlike gold and oil, which require extensive infrastructure, Bitcoin can be transferred globally in minutes and stored at near-zero cost. As institutional adoption grows, Bitcoin’s strategic value as a hedge against inflation and government debt is increasingly recognized. The future of US government’s Bitcoin policy Policy moves suggest that the establishment of a strategic Bitcoin reserve could position it alongside traditional assets like gold and oil in the future.In January 2025, President Donald Trump signed an executive order titled “Strengthening American Leadership in Digital Financial Technology,” establishing the Presidential Working Group on Digital Asset Markets to explore the creation of a national digital asset stockpile. Building upon this initiative, on March 7, President Trump signed another executive order to create a “Strategic Bitcoin Reserve” and a “US Digital Asset Stockpile,” aiming to position the US as a leader in the cryptocurrency space. These reserves will be funded exclusively through cryptocurrencies seized during law enforcement operations, ensuring no taxpayer funds are utilized.However, the reserve will be funded using cryptocurrencies already held by the government, primarily obtained through asset forfeitures rather than through new government purchases.This strategy has had mixed reactions. While some view it as a positive step toward embracing digital assets, others express concern over the lack of new investments and the potential implications of using forfeited assets. As of March 10, 2025, Bitcoin’s value declined by more than 5% to approximately $79,515, reflecting market disappointment over the reserve’s funding approach. Looking ahead, the US government’s Bitcoin policy is likely to continue evolving. The Presidential Working Group is expected to provide recommendations by July 2025, which could influence future regulatory frameworks, investment strategies and the integration of digital assets into the broader financial system. As global interest in cryptocurrencies grows, the US may further refine its policies to balance innovation with security and economic stability alongside traditional assets such as gold and oil, which remain integral to the nation’s financial strategy.
Crypto whale liquidated for $308M in leveraged Ether trade
A large cryptocurrency trader, known as a whale, lost more than $308 million on a leveraged Ether position, underscoring the risks of leveraged trading during volatile market conditions.The unknown crypto trader was liquidated on their 50x leveraged long position for over 160,234 Ether (ETH), worth more than $308 million at the time of writing, Hypurrscan data shows.Leveraged positions use borrowed money to increase the size of an investment, which can boost the size of both gains and losses, making leveraged trading riskier compared to regular investment positions.The crypto trader’s address showing transactions. Source: Hypurrscan The crypto whale opened the initial 50x leveraged position when ETH traded at $1,900, with a liquidation price of $1,877.Source: Lookonchain According to onchain intelligence firm Lookonchain, the whale had rotated all of his Bitcoin (BTC) holdings into the leveraged Ether trade before suffering the liquidation.The liquidation came during a period of heightened volatility, as both crypto and traditional markets are limited by global trade war concerns due to the latest retaliatory tariffs from the European Union. Related: Bitcoin reserve backlash signals unrealistic industry expectationsEther risks correction to $1,800 amid tariff fears, ETF outflowsEther’s price has fallen by more than 53% since it began its downtrend on Dec. 16, 2024, after it had peaked above $4,100.ETH/USD, 1-day chart, downtrend. Source: Cointelegraph/ TradingView The main reasons behind Ether’s downtrend are the ongoing macroeconomic concerns and lack of builder activity on the Ethereum network, according to Bitfinex analysts.“A lack of new projects or builders moving to ETH, primarily due to high operating fees, is likely the principal reason behind the lackluster performance of ETH. […] We believe that for ETH, $1,800 will be a strong level to watch,” the analysts told Cointelegraph.Related: Deutsche Boerse to launch Bitcoin, Ether institutional custody: Report“However, the current sell-off is not being seen solely in ETH, we have seen a marketwide correction as fears over the impact of tariffs hit all risk assets,” they added.The US spot Ether exchange-traded funds (ETFs) are also limiting Ether’s upside.Total spot Ether ETF net inflow. Source: SosovalueUS spot Ether ETFs have entered a fourth consecutive week of net negative outflows, after seeing over $119 million worth of cumulative outflows during the previous week, Sosovalue data shows.Magazine: Ethereum L2s will be interoperable ‘within months’: Complete guide
Bank of Russia proposes to allow crypto purchases for select investors
The Russian central bank is taking steps towards legalizing cryptocurrency trading for select investors in the country. In a recent announcement, the Bank of Russia proposed a new experimental regime that would allow a limited group of investors to buy and sell cryptocurrencies like Bitcoin (BTC).
This move comes after the bank received instructions from the President of Russia to regulate investments in cryptocurrencies. The proposal suggests that investors with at least $1.1 million in securities and deposits would be eligible to participate in the experimental regime. However, the bank also plans to introduce penalties for any crypto transactions that fall outside of this regime.
It’s important to note that while the Bank of Russia is considering allowing crypto trading for wealthy investors, the ban on using cryptocurrencies for payments in the country remains in place. This ban was put into effect earlier this year as part of Russia’s first crypto law, “On Digital Financial Assets.”
The central bank reiterated its stance on cryptocurrency as a means of payment, stating that it still does not consider it as such. As a result, the proposal also includes a ban on settlements between residents for transactions involving cryptocurrency outside of the experimental legal regime. The bank also plans to establish penalties for those who violate this ban.
It’s worth noting that this is a developing story, and more information will be added as it becomes available. The Bank of Russia’s proposal is still subject to government discussion and approval before it can be implemented.
In the meantime, the Russian government remains firm on its stance against using cryptocurrencies for payments. This move is in line with the country’s efforts to regulate and control the use of digital assets within its borders. As the situation continues to evolve, it’s important to stay updated on any further developments.
Bitcoin’s next catalyst: End of $36T US debt ceiling suspension
Bitcoin’s next significant price catalyst may arrive this Friday as the United States debt suspension period comes to an end, potentially injecting fresh liquidity into markets and driving a price rebound.The US Treasury hit its $36 trillion debt ceiling a day after President-elect Donald Trump’s inauguration on Jan. 20. Treasury Secretary Janet Yellen announced a “debt issuance suspension period” beginning Jan. 21, which is set to last until March 14, according to a letter published on Jan. 17.Bitcoin (BTC) has dropped 22% during the two-month debt suspension plan, from over $106,000 on Jan. 21 to $82,535 at the time of writing on March 12, TradingView data shows.BTC/USD, 1-day chart since Debt suspension plan. Source: Cointelegraph/TradingView The resumption of government spending will bring a liquidity boost that may catalyze Bitcoin’s next rally, according to Ryan Lee, chief analyst at Bitget Research.“With in-hand cash, the demand for financial assets such as stocks and crypto can increase, and there may be a relief from ongoing volatility,” the analyst told Cointelegraph. “In such periods, we can expect a boost in the overall momentum, although many other factors are important to note.”Beyond global tariff uncertainty, “concerns such as inflation, interest rates and geopolitical issues remain unresolved,” Lee added.Considering that the debt suspension ends just two weeks after the White House Crypto Summit, a portion of the new liquidity may flow into cryptocurrencies, according to Aleksei Ponomarev, co-founder and CEO of crypto index investing firm J’JO.“Surges in liquidity have typically benefited Bitcoin and risk assets, and the end of the US debt suspension will be no different,” he told Cointelegraph, adding:“While the liquidity surge will undoubtedly drive market price movement, it is limited to short-term impact. The long-term trajectory of Bitcoin is, and remains, tied to institutional investments, ETF growth and regulatory clarity and implementation.”GMI Total Liquidity Index, Bitcoin (RHS). Source: Raoul PalHowever, Bitcoin’s right-hand side (RHS), which marks the lowest bid price someone is willing to sell the currency for, may still face a potential correction to near $70,000 until the end of the debt suspension period on Friday, based on its correlation with the global liquidity index.Still, the growing money supply could push Bitcoin price above $132,000 before the end of 2025, according to estimates from Jamie Coutts, chief crypto analyst at Real Vision.BTC projection to $132,000 on M2 money supply growth. Source: Jamie CouttsRelated: Bitcoin may benefit from US stablecoin dominance pushBitcoin price still limited by global trade war concernsWhile more global liquidity is an optimistic sign for Bitcoin, the world’s first cryptocurrency remains limited by global trade tariff concerns, according to James Wo, the founder and CEO of venture capital firm DFG:“While some may argue that retaliatory measures from tariff-imposed countries were already priced in, tariffs have a delayed economic impact beyond their initial announcement.”“Higher import costs and reduced corporate margins are likely to push inflation higher, forcing central banks to keep interest rates elevated for longer under a restrictive monetary policy,” he added.This may also tighten liquidity conditions, making risk assets such as Bitcoin “less attractive in the short to medium term,” Wo said.Related: Bitcoin reserve backlash signals unrealistic industry expectationsThe European Union introduced retaliatory tariffs on March 12, threatening a Bitcoin correction below $75,000 in the short term. This may occur temporarily due to Europe accounting for over $1.5 trillion of annual US exports.Despite the short-term correction concerns, most analysts remained optimistic about Bitcoin’s price trajectory for late 2025, with price predictions ranging from $160,000 to above $180,000.Magazine: SCB tips $500K BTC, SEC delays Ether ETF options, and more: Hodler’s Digest, Feb. 23 – March 1