Bitcoin signals bottom as Fed eases policy and Trump softens tariff stance
Bitcoin appears to be forming a bottom and could potentially rebound toward the $90,000 mark, influenced by recent policy shifts in the United States. President Donald Trump has indicated a willingness to ease tariffs, particularly concerning the upcoming April 2 reciprocal tariffs, signaling a more flexible stance than previously held. This change in rhetoric has positively impacted market sentiment.
Concurrently, the Federal Reserve, during its March 18–19 meeting, chose to maintain its current stance on inflation, opting to overlook short-term inflationary pressures. This decision lays the groundwork for potential future easing measures. Federal Reserve Chair Jerome Powell’s mildly dovish tone suggests that the Fed’s support remains intact, providing further encouragement for a recovery in stock prices and, by extension, the cryptocurrency market.
Markus Thielen, founder of 10x Research, notes that Bitcoin’s 21-day moving average is now at $85,200, indicating a bullish reversal. He observes that weekly reversal indicators have retreated to levels where past bull markets have resumed, such as in September 2023 — spurred by the Bitcoin exchange-traded fund narrative — and August 2024 as the U.S. election approached. Thielen suggests that the technical backdrop has reset to a point where a renewed uptrend could plausibly unfold.
Additionally, several altcoins are breaking out of their downtrend channels and trading at more attractive levels. For instance, Ether (ETH), Tron (TRX), and Avalanche (AVAX) have rebounded by 4.3%, 6.4%, and 8.9%, respectively, over the past week.
Despite the optimistic outlook, Thielen anticipates significant resistance at the $90,000 level for Bitcoin, should it reach that point. He also notes that there is no clear catalyst for an immediate parabolic rally. However, he believes that Bitcoin is unlikely to drop below $73,000, thereby avoiding a deep bear market. This assessment is based on the observation that the largest group of Bitcoin holders — wallets containing between 100 and 1,000 Bitcoin — are likely family offices and wealth managers invested for the long term.
Furthermore, U.S.-based spot Bitcoin ETFs have experienced inflows for the first time since the last week of January. Thielen expects that Bitcoin ETF selling from arbitrage-focused investors will wind down, as arbitrage opportunities have primarily been closed for weeks.
In summary, recent policy adjustments by President Trump and the Federal Reserve have positively influenced Bitcoin’s market sentiment. Technical indicators suggest a potential rebound toward $90,000, although significant resistance is anticipated at that level. The broader cryptocurrency market is also showing signs of recovery, with several altcoins breaking out of their downtrend channels. While no immediate catalyst for a parabolic rally is evident, the current technical and policy environment supports a cautiously optimistic outlook for Bitcoin’s near-term performance.
Source: Cointelegraph
BlackRock expands $1.7B tokenized treasury fund onto Solana blockchain
BlackRock, the world’s largest asset manager with $11.6 trillion under management, has expanded its tokenized treasury fund, the BlackRock USD Institutional Digital Fund (BUIDL), to the Solana blockchain. This move marks Solana as the seventh blockchain platform supporting BUIDL, joining Ethereum, Aptos, Arbitrum, Avalanche, Optimism, and Polygon.
Since its inception, BUIDL has amassed approximately $1.7 billion in assets under management, with projections to surpass $2 billion by early April. This growth underscores the increasing institutional interest in tokenized financial products.
Unlike traditional money market funds that operate during standard business hours, BUIDL offers 24/7 accessibility. This continuous operation provides crypto traders with a yield-generating alternative to non-interest-bearing stablecoins such as USDT and USDC.
Securitize, the tokenization provider for BUIDL, integrated with the Solana blockchain in January. This integration aims to enhance the accessibility and adoption of tokenized real-world assets, leveraging Solana’s infrastructure to support this goal.
The expansion to Solana follows a similar move by Franklin Templeton, which launched its tokenized money market fund, the Franklin OnChain U.S. Government Money Fund (FOBXX), on Solana. FOBXX currently ranks as the third-largest tokenized money market fund, trailing behind BlackRock’s BUIDL and Hashnote’s USYC fund.
Source: Cryptobriefing
Elon Musk’s D.O.G.E initiative triggers massive federal layoffs in the US
Elon Musk’s Department of Government Efficiency (D.O.G.E) has initiated extensive layoffs across U.S. federal agencies, leading to a significant surge in job applications from affected employees. A recent report by Indeed reveals that job applications from workers at D.O.G.E-targeted agencies have increased by 75% compared to 2022, marking an unprecedented spike following a presidential transition. Between January and February alone, there was a 60% rise in applications from these federal workers, with more layoffs anticipated.
The layoffs have disproportionately impacted experienced professionals. Economist Cory Stahle notes that many affected employees have over a decade of tenure and hold bachelor’s degrees or higher. Agencies such as the Consumer Financial Protection Bureau and the U.S. Agency for International Development have seen significant reductions. Interestingly, while nearly half a million federal workers reside in the Washington D.C., Maryland, and Virginia area, 80% of the job seekers are from other regions, with nearly a third based in the South.
The rapid pace of these cuts has raised concerns about potential economic repercussions. Economist Claudia Sahm warns that the swift and uncertain nature of D.O.G.E’s actions could amplify risks, potentially pushing the country toward a recession. She emphasizes that while the federal workforce constitutes less than 2% of the U.S. labor force, the speed and unpredictability of the layoffs could have broader economic implications.
In addition to federal employees, D.O.G.E is scrutinizing government consulting contracts. The General Services Administration has requested federal agencies to justify consulting contracts with ten major firms, including Deloitte Consulting LLP and Booz Allen Hamilton. This move aims to eliminate non-essential consulting contracts, aligning with the administration’s goals to reduce spending and increase efficiency.
The mass layoffs have also sparked legal and political battles. Lawsuits and resistance from judges have emerged, with workers expressing outrage over sudden unemployment. Senator JD Vance acknowledges that while some federal employees may not be performing effectively, many are dedicated and competent, emphasizing the need to preserve effective government functions while eliminating inefficiencies.
Overall, D.O.G.E’s aggressive approach to reducing government spending has led to widespread job losses among federal employees and contractors. The rapid implementation and scale of these cuts have introduced uncertainty into the job market and raised concerns about potential economic instability.
Source: Cryptopolitan