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Category: Crypto
“Discover the latest trends and insights in cryptocurrency. Stay updated with news on Bitcoin, blockchain technology, crypto trading tips, and market analysis to make informed investment decisions.”
Is Bitcoin’s future in circular economies or national reserves?
Bitcoin is seeing unprecedented adoption, with the US establishing a Strategic Bitcoin Reserve, but some prominent Bitcoin advocates believe the project is getting away from its roots.
Earlier this year, Jack Dorsey, a Bitcoin proponent and founder of Twitter, said that he believed if Bitcoin (BTC) becomes just a form of “digital gold,” then the project has failed. He said that a national Bitcoin reserve may be “good for the nation-state, but I don’t necessarily know if it’s good for Bitcoin.”
Dorsey contended that Bitcoin needs to return to the white paper and work on becoming a form of peer-to-peer cash that can be transacted globally if it wants to become a success.
Around the world, a number of “circular Bitcoin economies” have been working at just that: developing local economies that use Bitcoin as currency in an attempt to showcase its viability and what the future of BTC can look like.
The Bitcoin white paper put forward a cash system. Source: Bitcoin.org
Bitcoin circular economies and Wall Street
The Bitcoin Federation calls a Bitcoin circular economy a “local economic ecosystem where Bitcoin (BTC) is used increasingly as a medium of exchange, a unit of account, and a store of value” — i.e., a place where Bitcoin fulfills the three roles of currency, as it is understood.
There are diverse Bitcoin communities and circular economies all over the world, but their goal is similar in that they all believe that Bitcoin is the superior form of money and that it should be used “as a means of payment for goods and services and for settlement of other financial obligations.”
Related: Failure or 5D chess? El Salvador IMF deal walks back Bitcoin adoption
This approach of using Bitcoin as a currency diverges from the prevailing attitude in the United States, where crypto advocates view it as a reserve asset to be hoarded — akin to digital gold. President Donald Trump told the Nashville Bitcoin conference in July 2024, “Never sell your Bitcoin.”
In a March 17 lecture at the Bitcoin Policy Institute, Strategy CEO and Bitcoin maximalist Michael Saylor likened the digital currency to an investment asset. A significant stake, per Saylor, would allow the holder — such as the US government — to exert control over the digital economy in another iteration of “manifest destiny.”
When asked whether mass adoption by a nation like the US takes Bitcoin away from its founding principles, Isa Santos, founder of the Bitcoin Isla project in Isla Mujeres, Mexico, said:
“Yes, but that’s the beauty of Bitcoin. It’s for your enemies, too.”
Stelios Rammos, founder of Bitcoin crowdfunding project Geyserfund, said that, good or bad, adoption by governments was “inevitable.”
“Bitcoin is for everyone, and its truest founding principle is being permissionless money. The adoption of Bitcoin by governments was inevitable, and if there was a button we could press to say, ‘Governments are banned from Bitcoin,’ then it wouldn’t be Bitcoin anymore,” he told Cointelegraph.
Still, he believes that the Bitcoin community has a core set of values that promotes grassroots adoption of Bitcoin over government welfare, adding that Bitcoin is at a stage where Bitcoiners should be more concerned about how it’s adopted rather than whether it’s adopted.
“Circular economies will have a huge role to play in bringing about a future where Bitcoin is held and used by everyday people and not just held as a pure asset within digital vaults at large banks and governments,” said Rammos.
Both said that there were tangible benefits to government Bitcoin adoption. Santos said that adoption from a large country like the US could still be a positive in that many look to the US as a leader in the financial world.
Rammos said that the US adopting Bitcoin would raise awareness about the seminal cryptocurrency, which benefits the entire network and has knock-on effects for circular economies worldwide.
What does Bitcoin do for these communities?
Bitcoin circular economies are present all over the world. They have gained particular ground in developing economies where the local currency is unreliable as a store of value.
In Cuba, where inflation is runaway and salaries are at unlivable lows, Bitcoin and Bitcoin circular economies have allowed locals to protect their savings.
In rural Peru, where most people are unbanked — i.e., do not have a bank account or access to financial services — Bitcoin has provided a way for locals to save their money and pay for school and everyday expenses.
There are challenges, however. Namely, Bitcoin’s notorious volatility makes it difficult to sell as an instrument for savings to rural communities, according to Valentin Popescu, co-founder of Motiv — a Bitcoin education and advocacy group in Peru.
Bitcoin communities also face challenges of growing outside the group of Bitcoin expats and enthusiasts who are already present. Bitcoin advocates flocked to El Salvador, where Bitcoin Beach provided the first prototype for a Bitcoin circular economy. However, this did not translate into locals actually using Bitcoin.
Related: ‘Bitcoin hasn’t had the widespread adoption we hoped for’ — Nayib Bukele
Bitcoin circular economies proliferate worldwide. Source: Geyser Fund
Aside from the victories and challenges facing these communities, many of them also offer financial education programming and community-building initiatives.
Santos said that “each circular economy has its own unique features. They have to cater to the needs of the communities that make them.” She said that one common factor among such communities is volunteering.
Bitcoin Ekasi, a Bitcoin circular economy in South Africa, supports the local Surfer Kids community project by paying coaches’ salaries in Bitcoin while simultaneously onboarding local shops and vendors to accept Bitcoin payments.
Rammos said that these communities can put lesser-known locations on the map, attracting tourism through “Bitcoin expats” who want to come to spend their Bitcoin and grow the local economy.
“Ultimately, the local populations gain from being a Bitcoin circular economy as much as the Bitcoin network benefits from having them; it’s a true symbiosis,” said Rammos.
Whether it is Wall Street or Main Street that drives Bitcoin adoption, the end goal for the organizers running these communities is to have Bitcoin fully integrated into the financial world.
Rammos concluded, “There will be a point in the hopefully not-so-distant future where we won’t need the term ‘circular economies’ anymore; it will just be the Bitcoin economy or just the economy.”
Magazine: Arbitrum co-founder skeptical of move to based and native rollups: Steven Goldfeder
What are crypto payment gateways, and how do they work?
Key takeaways
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Crypto payment gateways enable businesses to accept cryptocurrency payments from customers.
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They act as intermediaries, converting crypto payments into the business’s preferred currency (crypto or fiat).
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Crypto payment gateways reduce transaction fees compared to traditional banking systems and provide access to a global customer base.
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These gateways leverage blockchain technology to offer secure and faster transactions with fewer intermediaries, enhancing transparency and reducing the risk of fraud.
The cryptocurrency industry faces significant challenges, particularly in the area of seamless conversion between digital assets and fiat currencies. This issue makes it difficult for businesses and users to adopt cryptocurrencies for everyday transactions.
Crypto payment gateways address this need by simplifying the process of converting digital currencies into fiat, enabling smooth and efficient transactions.
This article explores what crypto payment gateways are, how these gateways work, and their pros and cons.
Cryptocurrency payment gateways, explained
A cryptocurrency payment gateway is a digital transaction facilitator that enables businesses to accept crypto payments while ensuring seamless processing and settlement.
These gateways act as intermediaries between customers who pay with digital assets and merchants who receive crypto payments, helping businesses navigate the complexities of blockchain transactions. Examples of crypto payment gateways include BitPay, Coinbase Commerce and PayPal’s crypto payment service.
One of the key advantages of using a crypto payment gateway is that businesses can receive payments in cryptocurrency while opting to convert them into fiat currency, which is then deposited into their bank accounts. This eliminates concerns about crypto price volatility while allowing merchants to offer additional payment options to their customers.
Are crypto payment gateways necessary for accepting digital currencies?
While crypto payment gateways simplify the process of accepting digital assets, they are not the only way for businesses to receive cryptocurrency payments.
Merchants can choose to accept crypto directly by using personal wallets, bypassing third-party processors. However, without a payment gateway, they would need to manually manage transactions, track payments on the blockchain, and handle currency conversion if they wish to receive fiat instead of crypto.
For businesses looking to integrate cryptocurrency payments alongside traditional methods, crypto payment gateways provide an efficient solution. These services offer real-time transaction processing, automatic conversion to fiat and additional security features that protect businesses from fraudulent transactions.
However, be aware of fees. Coinbase Commerce charges a 1% fee on all crypto payments. After your customer completes a payment, this fee is collected in the settlement currency of the transaction.
For example, if your customer makes a $250 purchase in Bitcoin (BTC), and your settlement currency is in euros, it would collect 2.5 euros (1% of the payment amount) as a fee.
Types of crypto payment gateways: Custodial vs. non-custodial
Crypto payment gateways can be classified into two main types: custodial and non-custodial. The choice between these options depends on a business’s preferences regarding security, control and ease of use.
Custodial crypto payment gateways
Custodial gateways function similarly to traditional payment processors. They receive and temporarily hold payments before allowing merchants to withdraw funds to their crypto wallets or convert them to fiat currency. This model is ideal for businesses that want a streamlined experience without dealing with direct wallet management.
Key characteristics of custodial payment gateways include:
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Automated fiat conversion: Payments can be converted to local currency instantly, mitigating volatility risks.
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User-friendly dashboard: Merchants can manage transactions, track payment history, and withdraw funds through an online portal.
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Compliance features: Many custodial gateways implement Know Your Customer (KYC) and Anti-Money Laundering (AML) measures to meet regulatory requirements.
Non-custodial crypto payment gateways
Non-custodial payment gateways provide merchants with full control over their funds by immediately transferring payments to their wallets without holding them on behalf of the business. These solutions prioritize decentralization and security, allowing merchants to manage their own private keys.
Key characteristics of non-custodial payment gateways include:
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Enhanced security: Funds are not stored by the gateway, which reduces the risk of hacks or third-party control.
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Direct crypto transfers: Payments are sent straight to the merchant’s wallet, which eliminates withdrawal processes.
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Greater privacy: Merchants can accept payments without undergoing extensive KYC verification.
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Lower fees: Transaction costs are reduced for both parties since no intermediaries are involved.
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Increased transparency: The blockchain records transactions, providing an immutable and traceable record.
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Full control over funds: Merchants retain complete ownership and access to their crypto assets.
Did you know? Major banks and fintechs, including Bank of America, Standard Chartered, PayPal, Revolut, and Stripe, are entering the stablecoin market to enhance cross-border payments.
How do crypto payment gateways differ from traditional fiat payment gateways?
Traditional payment gateways, such as those used for credit card processing, facilitate transactions in government-issued currencies like the US dollar or euro. These fiat gateways connect a merchant’s payment system to a bank, verifying transactions based on the customer’s bank details before authorizing or declining payments.
Key distinctions between fiat and crypto payment gateways include:
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Currency type: Fiat gateways exclusively process national currencies, whereas cryptocurrency gateways support digital assets like BTC, Ether (ETH) and stablecoins.
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Decentralization: Traditional payment gateways rely on centralized financial institutions, while crypto payment gateways leverage blockchain technology for peer-to-peer transactions.
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Transaction speed: Crypto payments can be settled in minutes, whereas fiat transactions, especially international payments, may take days to clear.
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Chargeback protection: Unlike fiat payments, where chargebacks can be issued, crypto transactions are irreversible once recorded on the blockchain.
While fiat payment gateways remain essential for conventional banking transactions, crypto payment gateways are expanding payment possibilities by integrating blockchain-based financial solutions.
As cryptocurrency adoption continues to grow, businesses must evaluate their payment strategies and choose the right gateway solution that aligns with their operational needs.
Pros and cons of cryptocurrency payment gateways
You must be aware of the pros and cons of cryptocurrency payment gateways before using them, whether for business transactions or everyday personal use.
Pros of crypto payment gateways
One of the major advantages of using cryptocurrency payment gateways is the ability to settle transactions quickly. These platforms typically charge a minimal network fee (covered by the service provider) and a small service fee for customers. The streamlined process involves just one intermediary — the crypto payment processor — which enhances the user experience for both businesses and their clients.
Additionally, crypto payment systems benefit from the transparency of blockchain technology, offering protection for merchants against chargeback fraud. Unlike traditional fiat payment systems, where transactions can sometimes result in businesses not receiving the funds after they have been deducted from a customer’s account, crypto payments provide more certainty. Furthermore, these gateways can handle a variety of cryptocurrencies, mitigating the risk of market volatility for merchants.
Cons of crypto payment gateways
However, crypto payment gateways are still intermediaries in the process, meaning settlements are not fully decentralized. This centralization could pose a risk. For instance, if a crypto payment processor experiences operational disruptions, merchants may face delayed payments until the issue is resolved. Similarly, if the gateway is compromised by a cyberattack, businesses may lose access to their funds.
Another downside is that crypto payment gateways can be more expensive than direct blockchain transactions. Since these gateways act as intermediaries, they add their own fees on top of the blockchain network’s transaction costs.
As centralized entities, crypto payment processors introduce a level of trust. Merchants need to ensure that the processor is capable of offering reliable, secure services to prevent potential cyber threats.
Do cryptocurrency exchanges offer payment gateways?
Binance, Coinbase and Kraken, which are centralized cryptocurrency exchanges, provide payment gateways to facilitate crypto transactions.
Additionally, they offer application programming interfaces (APIs), which enable merchants to create custom checkout pages with full design control. APIs act as software intermediaries that allow different applications to communicate seamlessly.
Binance offers a crypto payment solution called Binance Pay, tailored for businesses that are open to accepting digital currency. Merchants can integrate Binance Pay both online and in physical stores.
By displaying a unique QR code, physical stores can offer a secure and contactless crypto payment option, enhancing customer convenience. For online businesses, Binance Pay allows seamless cross-border transactions, providing customers with more diverse payment options. Merchants can either create a merchant account or work with channel partners to start accepting crypto payments via Binance Pay.
On the other hand, Coinbase offers its own payment gateway, Coinbase Commerce, which supports 10 different digital currencies, including ETH, USDC (USDC), Dogecoin (DOGE), Tether’s USDt (USDT) and Litecoin (LTC).
Payments processed through Coinbase Commerce are instantly converted to US dollars, ensuring stability for merchants. Importantly, Coinbase does not have access to any funds deposited into merchant accounts.
If a merchant loses their 12-word recovery phrase, Coinbase is unable to assist in retrieving the lost assets. Additionally, Coinbase applies a 1% fee on transactions before the funds are transferred to the merchant’s account, as mentioned above.
Kraken Pay is a cryptocurrency payment processor that allows businesses to accept a wide range of digital currencies, offering fast and secure transactions. It provides easy integration with Kraken exchange wallets, low fees and the ability to convert crypto to fiat, but it still relies on centralized trust.
Did you know? In March 2022, MoonPay enabled customers to purchase NFTs directly through marketplaces, simplifying the process by integrating traditional payment methods like credit cards and Apple Pay.
Are crypto payment gateways secure?
When selecting a cryptocurrency payment gateway, merchants should carefully evaluate how the provider manages the storage of cryptocurrencies and fiat funds.
It’s important to review factors such as transaction fees, the variety of supported cryptocurrencies and the platform’s history regarding security breaches or scams. Understanding these elements helps merchants make informed decisions about which gateway aligns with their needs.
In addition, ensuring that the crypto payment gateway offers reliable customer support is essential. Having access to prompt and effective assistance is crucial in case of disruptions or issues with payments. A responsive support team can help resolve problems quickly and minimize downtime for businesses.
Finally, merchants should always check the reputation of a payment gateway before committing. Consulting specialized review sites and reading feedback from other users will provide insights into the platform’s reliability and trustworthiness. Thorough research ensures that merchants select a secure and reliable payment processor for their business.
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MahaKumbh signaled India’s readiness for the metaverse
Opinion by: Shubham Kukrety, co-founder and CEO at QuoteIt
Strange sights were seen as India recently concluded MahaKumbh, a Hindu congregation that occurs once every 144 years.
Every day, a man took dips at Sangam — the triple confluence of rivers Ganga, Yamuna and Sarasvati — with several passport-sized photographs offering “Digital Snan,” symbolizing digital nectar baths. A nine-acre camp offered people a glimpse of the Hindu religion since the beginning of time. Several families received a 360-degree live virtual MahaKumbh tour with a VR box and packaged pure Sangam water at their homes.
These are some of the sights that were seen for the first time in MahaKumbh’s known history. But all of it brings us to a fascinating question: Does the fusion of tech and tradition help us peek into India’s future of the metaverse? Indeed.
Adopting technology religiously
India’s approach to technology has always been unique. The country has previously leapfrogged many traditional technology adoption cycles. For example, it moved directly to mobile-first digital experiences without many households ever seeing a landline. As immersive technologies gain traction, the country shows signs of its distinctive adoption pattern.
Over the past few years, digitization of religious experiences has surged in India. The VR Devotee app, launched in 2016, streamed rituals and festivals from over 150 temples, allowing devotees to participate virtually. During COVID-19, the platform saw a remarkable 40% jump in user engagement.
The Indian government, recognizing this potential, launched “Temple 360” in 2022 — a web portal providing virtual darshan (viewing of deities) from significant pilgrimage sites. When the famous Puri Jagannath Rath Yatra was held without public attendance for the first time in 2020, millions watched live. The same holds for nearly all pilgrimages in India.
What’s particularly striking about MahaKumbh?
Immersive technologies were embraced at one of Hinduism’s most sacred gatherings, which saw over 663 million people make pilgrimages. If deep spiritual traditions can incorporate digital experiences, it signals a profound cultural readiness for adoption.
From skepticism to frontier tech
Under the Digital India initiative, AR/VR is explicitly identified as an emerging technology alongside AI, blockchain and 5G networks. And this isn’t mere lip service.
The government has backed its words with concrete actions, establishing Centers of Excellence like VARCoE at the Indian Institute of Technology Bhubaneswar and launching initiatives such as IMAGE to incubate extended reality (XR) startups. In 2022, the MeitY Startup Hub partnered with Meta to launch the XR Startup Program, extending grants worth 20 lakh Indian rupees (~$23,000) to 16 startups.
Recent: Indian town adopts Avalanche blockchain for tamper-proof land records
The Uttar Pradesh government recently launched a 3D VR experience center in Ayodhya. Multiple Hindu religious places, including Kashi Vishwanath Dham and Maa Vaishno Devi Bhawan, have already extended such immersive experiences.
This deliberate strategy can prove to be a catalyst in India’s XR adoption, tapping the nation’s rich cultural heritage.
Corporate giants embrace the immersive future
Perhaps the most telling sign of India’s metaverse readiness comes from its corporate landscape. Reliance leads the charge, headed by Asia’s richest person, Mukesh Ambani. In a landmark development, Jio Platforms recently partnered with Polygon Labs to integrate Web3 and blockchain capabilities into its existing digital ecosystem.
The partnership is no small feat. It potentially brings Web3 functionality to Jio’s vast user base of over 482 million customers. Jio had previously demonstrated its commitment to immersive technologies by unveiling “Jio Glass,” an affordable mixed-reality device designed for the Indian market. Reliance’s acquisition of Tesseract in 2019 and recent discussions with Meta underscore its long-term bet on immersive futures.
The country’s largest telecom provider is strategically investing in metaverse-enabling technologies. This speaks volumes about the future of digital experiences in the country.
This year, after announcing its partnership with Polygon, Jio also launched its mystery JioCoin, a significant development for the Indian Web3 community. Meanwhile, the Indian Railway Catering and Tourism Corporation also issued non-fungible (NFT) train tickets on the Polygon blockchain to passengers traveling to the MahaKumbh festival.
These initiatives tapped Polygon specifically for its faster throughput and low gas fees — practical considerations that signal maturity in blockchain implementation in India.
Differing perspectives and the elusive mainstream moment
Not everyone is convinced that digitizing sacred experiences represents progress. The “Digital Snan” service for 1,100 rupees in Sangam triggered a significant backlash on social media. Critics viewed such services as commercializing spirituality and reducing sacred rituals to transactional experiences.
Furthermore, it’s been over eight years since Pokémon Go took the world by storm, demonstrating AR’s potential to create cultural phenomena that transcend demographic boundaries. The world hasn’t seen anything of that magnitude ever since.
This absence of a defining moment also raises questions about whether immersive technologies will achieve the ubiquity that smartphones have at present. Mall VR arcades attract curious teens for one-off experiences, but habitual usage patterns haven’t materialized outside specific professional contexts.
Green shoots of adoption?
What distinguishes India’s potential metaverse from Western models is its grounding in cultural contexts with profound meaning for millions. While Silicon Valley envisions virtual offices and digital asset speculation, India’s early applications focus on democratizing experiences of profound cultural significance.
This culturally rooted approach could ultimately prove more sustainable. By addressing genuine human needs — connection to heritage, participation in community rituals, access to experiences otherwise impossible due to distance or disability — India’s metaverse initiatives may find the elusive “why” that has hampered mainstream adoption elsewhere.
Opinion by: Shubham Kukrety, co-founder and CEO at QuoteIt.
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.
What are exit liquidity traps — and how to detect them before it is too late
Key takeaways
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Exit liquidity traps occur when new investors unknowingly provide liquidity for insiders to cash out, leaving them with devalued assets.
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FOMO drives impulsive trades, often leading to costly mistakes and becoming exit liquidity for early movers.
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Beware of projects with exaggerated claims, low liquidity, anonymous teams or sudden price surges.
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Investing in high-market-cap coins, avoiding hype-driven projects and using reputable exchanges reduce the risk.
Are you concerned about having bought a cryptocurrency only to later realize that your investment facilitated someone else’s profitable exit? This scenario is called an exit liquidity trap, a deceptive market dynamic where unsuspecting traders provide liquidity for insiders or seasoned investors to offload their holdings at inflated prices.
By the time you recognize you have been trapped, the price crashes, leaving you with devalued tokens. But how do you spot these traps before it is too late?
This guide breaks down exit liquidity traps, their warning signs and strategies to protect your crypto investments.
What is exit liquidity?
In traditional finance, the term refers to buyers who acquire shares from early investors or founders during liquidity events such as acquisitions, mergers or initial public offerings (IPOs). However, in the cryptocurrency market, it has taken on a more negative connotation.
In the cryptocurrency market, exit liquidity refers to unsuspecting investors who purchase tokens with little or no real value, thereby providing liquidity to sellers aiming to offload their holdings.
This situation often arises when traders buy digital assets that later become difficult to resell due to low demand or loss of value. Understanding exit liquidity is crucial for crypto traders to avoid being caught in schemes where their investments primarily benefit those looking to exit the market.
The sheer number of tokens launched every month suggests the scale of exit liquidity traps crypto traders face. In early 2024, over 540,000 new crypto tokens were created, averaging approximately 5,300 new tokens launched daily.
Did you know? In 2024, over 2 million tokens were launched. Of these, roughly 870,000 tokens, representing 42.35%, were available for trading on decentralized exchanges (DEXs).
How can you end up becoming an exit liquidity for others’ profit?
Unforeseen circumstances can sometimes turn your investments against you, making you an exit liquidity victim. Here are some common scenarios where this might happen:
Pump-and-dump schemes
Pump-and-dump schemes happen when a group of individuals artificially inflates the price of a cryptocurrency by aggressively creating a buzz around it. New investors are drawn in as the price surges, believing they are riding a profitable opportunity. However, the manipulators dump their holdings, causing a sharp crash in cryptocurrency, primarily memecoins. Those who bought late end up with significant losses and illiquid assets.
Project failures and scandals
A major security breach, financial mismanagement or controversy involving a crypto project can lead to a rapid decline in its token value. When panic selling begins, investors who exit early minimize their losses, while those who hold on too long become exit liquidity victims as the price crashes.
Regulatory crackdowns
Government actions against specific cryptocurrencies can suddenly shift market dynamics. If a cryptocurrency is declared illegal or subjected to strict regulations, its trading volume and liquidity can collapse, leaving investors struggling to sell.
Exchange delistings
When a cryptocurrency is removed from major exchanges, its liquidity can dry up quickly. Finding buyers for the token becomes increasingly difficult without access to a large trading platform. Novice investors may become an exit liquidity medium for those offloading their holdings ahead of the delisting.
Market manipulation
Certain deceptive trading practices, such as wash trading or spoofing, can mislead investors into believing there is a strong demand for cryptocurrency. Manipulators create an illusion of price growth, encouraging new investors to buy in. Once the price reaches their target, they sell their holdings, leaving others with depreciating assets.
ICOs and token sale frauds
Some initial coin offerings (ICOs) and token sales are designed to deceive investors. Project founders may sell large amounts of tokens under the promise of delivering a groundbreaking project but later abandon it or fail to fulfill commitments, leading to a steep decline in token value.
Did you know? As per Chainalysis, the number of tokens launched in 2024 was 2,063,519. Among these, the number of suspected pump-and-dump tokens was 74,037.
FOMO — The core reason for exit liquidity traps
FOMO, or fear of missing out, is a key factor behind crypto traders becoming exit liquidity victims. It is an emotional reaction where traders rush into perceived market opportunities, fearing they will miss potential gains. This leads to trades executed without thorough analysis, increasing the risk of losses.
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Trend-chasing: FOMO-driven traders enter positions based on hype rather than fundamentals, making them vulnerable to market downturns.
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Neglect of risk management: These traders frequently neglect risk management strategies like diversification or stop-loss orders. This leaves them exposed to sudden price drops.
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Focus on short-term gains: FOMO-driven traders prioritize short-term gains over sustainable investment strategies, leading to frequent, costly trades that erode overall returns.
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Impulsive decision-making: The traders’ heavy reliance on social media, news and peer influence further drives poor decision-making, as they react to market hype instead of conducting independent research.
Factors behind FOMO
Several factors trigger FOMO in crypto trading:
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Market rallies: Sharp price surges create a sense of urgency. Traders rush to buy assets without analyzing fundamentals, fearing they will miss out on quick profits.
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Social media hype: Social media influencers and online communities often create hype, leading traders into making risky, emotionally driven decisions.
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Peer pressure: Peer pressure is another factor, as seeing friends or colleagues profit from trades can push individuals to follow suit.
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Chasing trends: The tendency to chase trends pushes traders to neglect personal financial strategies. The fear of missed profits drives impulsive trades, which drives the trend.
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Regret: Watching asset prices rise creates regret in traders if they don’t hold the cryptocurrency themselves, prompting traders to act without proper analysis.
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News-induced anxiety: Overexposure to market news produces anxiety. Constant updates and financial reports create a sense of urgency, prompting traders to react hastily rather than sticking to a well-thought-out plan.
Did you know? According to Glosten et al.’s (1993) GJR-GARCH model, neither Baur and Dimpfl (2018) nor Cheikh et al. (2020) found the FOMO effect for Bitcoin or Ether during 2013–2018. But Wang et al. (2021) discovered a FOMO effect in the Bitcoin market between 2014 and 2019.
How to detect exit liquidity traps in crypto
Detecting exit liquidity traps requires diligent analysis on your part. Consider the project’s development activity, the team behind it and community engagement. Here are the red flags to spot potential exit liquidity traps:
Coins without solid fundamentals and exaggerated claims
Steer clear of projects that artificially inflate the price of a coin, luring in unsuspecting investors before insiders dump their holdings for profit. Known as pump-and-dump scams, these often involve exaggerated claims, assured returns and aggressive marketing. Examine if the project has a lopsided token distribution — a high concentration of tokens among a few wallets signals manipulation.
Bundled buys and developer activity
Bundled transactions can be used to manipulate token distributions, making a project seem more legitimate than it is. Developers may execute multiple transactions immediately after liquidity is added, securing tokens at the lowest price and later selling at a premium.
For example, to identify bundled buys on Solana, use GeckoTerminal. When you search for your desired token, the right sidebar displays its GT Score. The Soul Scanner section enables you to view the “Bundled Buy %,” which reveals the number of tokens acquired through bundled buys tactics. This metric provides insight into the bulk buying activity of a specific token.
Over-hyped coins
Aggressively promoted coins with weak fundamentals and a low number of use cases are likely to crash eventually. Such coins often experience short-term price surges driven by influencers. Developers who actively create the buzz around these coins, allocate tokens to themselves and dump their holdings after prices shoot up.
Launched in 2016, Bitconnect was marketed as a high-yield investment platform, promising substantial returns through a proprietary trading algorithm. Its multilevel marketing structure and unrealistic returns led to suspicions of it being a Ponzi scheme. In January 2018, Bitconnect abruptly shut down its lending and exchange services, causing the token’s price to plummet from an all-time high of nearly $525 to below $1, resulting in significant investor losses.
Invisible team
Cryptocurrency projects lacking identifiable team members present significant risks. The inability to verify developer identities prevents accountability. This anonymity enables developers to disappear with invested capital. The absence of transparency creates problems in evaluating a project’s legitimacy and progress. Moreover, the lack of visible leadership undermines trust, which is essential for any successful enterprise.
Regulatory issues
If a project faces regulatory issues regarding compliance or money laundering, consider it a red flag. Additionally, legal frameworks vary across jurisdictions, adding complexity and potential risks. Noncompliance could lead to hefty penalties or even the project’s shutdown.
How to avoid exit liquidity traps in crypto
If you are a crypto investor, you must understand how to avoid exit liquidity traps. Thankfully, there are strategies to help you avoid this situation and protect your investments. Here is a breakdown of such methods:
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Invest in coins with high market capitalization: Coins with high market capitalization are typically more stable and liquid. These assets attract a large number of buyers and sellers, making it easier to enter and exit positions without major price fluctuations. Low-cap coins, on the other hand, can be highly volatile and often lack sufficient liquidity, increasing the risk of being stuck with unsellable assets. Always check a coin’s market cap and trading volume before investing.
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Choose coins with active trading communities: A strong, engaged trading community is a key indicator of a coin’s liquidity. Coins with active investors and consistent trading activity tend to have stabler demand, reducing the risk of getting trapped in an illiquid market. Look for projects with active discussions on social media, consistent developer updates and healthy buy-sell activity on exchanges.
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Avoid pump-and-dump scams: Be cautious of coins that gain sudden attention without any solid fundamentals. Conduct thorough research and avoid assets that appear too good to be true. You should consider vesting periods. Sudden developer sell-offs can crash prices and leave investors with worthless assets.
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Use reputable exchanges: Trading on well-established exchanges like Binance and Coinbase ensures better liquidity and smoother transactions. Trustworthy platforms do their due diligence before listing projects so you can feel safer with the coins on offer. While regulatory hurdles — such as the removal of Tether’s USDt (USDT) in the European Union — or unforeseen events like the Terra ecosystem collapse in May 2022 can lead to delistings, reputable exchanges typically do not remove coins without significant reasons.
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Focus on the coin’s long-term viability: If you feel a coin is overly promoted, especially in the memecoin space, take it as a warning sign. Instead of following social media trends, focus on a coin’s fundamentals and community strength. Your goal should be the long-term viability of the coin and not a short-term gain.
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Stay informed about changing regulations: Staying informed about evolving cryptocurrency regulations is crucial for investors. Legal frameworks significantly impact market dynamics, asset valuation and investment strategies. Changes can introduce new compliance requirements, tax implications or even outright bans, affecting the stability of your portfolio.
Fundamental analysis of cryptocurrencies: A robust tool to deal with exit liquidity traps
Fundamental analysis is a crucial tool for investors looking to avoid exit liquidity traps. Unlike traditional assets such as stocks, cryptocurrencies lack standard valuation metrics like price-to-book ratios. But assessing a crypto asset’s actual value beyond its price movements can help identify solid investments and reduce liquidity risks.
When evaluating a cryptocurrency, one of the key questions is: Will businesses adopt it? While individual and institutional investors may drive demand by holding assets, long-term value is best determined by utility rather than scarcity alone. A cryptocurrency with real-world applications and industry adoption is more likely to sustain liquidity over time.
For instance, Ethereum introduced smart contract functionality, enabling decentralized applications (DApps). Despite its technological significance, issues like network congestion and high fees limited its public adoption. This highlights the importance of evaluating both innovation and practical usability when conducting fundamental analysis.
Other factors to consider include developer activity, transaction volume and network security. A strong development team, consistent upgrades and a growing user base signal a cryptocurrency’s potential for long-term viability. By focusing on these elements, investors can make informed decisions, reducing the chances of being trapped in illiquid assets.
Leveraging behavioral finance to avoid exit liquidity traps
“The investor’s chief problem — and even his worst enemy — is likely to be himself.” — Benjamin Graham
As Graham insightfully points out, investors often become their own worst enemy, making decisions driven by emotion rather than logic. To avoid exit liquidity traps, you need as much knowledge of behavioral finance as you do about crypto trading fundamentals. Understanding how human behavior influences financial decisions can help you recognize and mitigate irrational choices.
Humans are not always rational in our decision-making — emotions such as greed, fear and hope, along with cognitive biases, often drive trading behavior. Recognizing these psychological tendencies is crucial to making informed, objective investment decisions.
While honing hard skills like financial analysis and conducting due diligence on project teams is essential, it is equally important to develop behavioral skills. Practicing patience, managing FOMO and making balanced decisions can help you avoid impulsive trades and minimize risks in volatile markets.
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Price analysis 3/26: BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LINK, AVAX, XLM
Bitcoin (BTC) bulls have maintained the pressure and are attempting to push the price above the $90,000 resistance. A positive sign in favor of the bulls is that the US spot Bitcoin exchange-traded funds have witnessed net inflows for eight successive trading days, according to SoSoValue data. That indicates institutional investors are gradually buying again.
In another positive, a Bitcoin whale bought 2,400 Bitcoin — worth over $200 million — on March 24 to increase the total holding to more than 15,000 BTC, blockchain analytics firm Arkham Intelligence said in a post on X.
Crypto market data daily view. Source: Coin360
However, a Bitcoin rally may not be easy as bulls are expected to encounter solid selling near $90,000. Alphractal CEO Joao Wedson highlighted in a post on X that whales had closed long positions and initiated short positions on Bitcoin at $88,000. He added that history says the whales are right.
Could Bitcoin break above the stiff overhead resistance, pulling altcoins higher, or is it time for a short-term correction? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin is facing selling at the resistance line, but a positive sign is that the bulls have not allowed the price to dip below the 20-day exponential moving average ($85,825).
BTC/USDT daily chart. Source: Cointelegraph/TradingView
The flattening 20-day EMA and the relative strength index (RSI) near the midpoint suggest that the bulls have a slight edge. A break and close above the 50-day simple moving average ($89,787) indicates that the correction may be over. The BTC/USDT pair could soar to $95,000 and later to the crucial resistance at $100,000.
Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, it signals that the bulls have given up. That may sink the pair to $83,000 and then to $80,000.
Ether price analysis
Ether’s (ETH) recovery is facing solid resistance at the breakdown level of $2,111, indicating that the bears are unwilling to give up their advantage.
ETH/USDT daily chart. Source: Cointelegraph/TradingView
If the price continues lower and breaks below $1,937, it will signal that the bears are trying to flip the $2,111 level into resistance. If that happens, the ETH/USDT pair could decline to $1,800.
This negative view will be invalidated in the near term if the price turns up and breaks above $2,111. That opens the doors for a rally to the 50-day SMA ($2,325) and subsequently to $2,550. Such a move will suggest that the pair may have formed a short-term bottom at $1,754.
XRP price analysis
XRP (XRP) is trying to take support at the 20-day EMA ($2.39), suggesting that the bulls are buying on dips.
XRP/USDT daily chart. Source: Cointelegraph/TradingView
If the price bounces off the 20-day EMA, the bulls will try to push the price to the resistance line. If the price turns down sharply from the resistance line and breaks below the moving averages, it will signal that the bears remain in control. That could keep the XRP/USDT pair stuck between the resistance line and $2 for some more time.
Buyers will be in the driver’s seat on a break and close above the resistance line. The pair may rally to $3 and eventually to $3.40.
BNB price analysis
BNB (BNB) bulls are facing resistance at $644, but a positive sign is that the buyers have not given up much ground to the bears.
BNB/USDT daily chart. Source: Cointelegraph/TradingView
The 20-day EMA ($616) has started to turn up, and the RSI is in the positive zone, suggesting that the path of least resistance is to the upside. If buyers drive the price above $644, the BNB/USDT pair could ascend to $686. This level may again act as a strong barrier, but if the bulls overcome it, the pair may rally to $745.
The first sign of weakness will be a break and close below the 20-day EMA. That may pull the price down toward the 38.2% Fibonacci retracement level of $591.
Solana price analysis
Solana (SOL) broke and closed above the 20-day EMA ($136) on March 24, suggesting the start of a relief rally.
SOL/USDT daily chart. Source: Cointelegraph/TradingView
The 50-day SMA ($155) may act as a resistance, but if the bulls prevail, the SOL/USDT pair could rally to $180. Sellers are expected to aggressively defend the $180 level. If the price turns down sharply from $180 and breaks below the 20-day EMA, it will signal a possible range formation in the near term. The pair may consolidate between $110 and $180 for some time.
Instead, if buyers drive the price above $180, it suggests that the pair has started its journey toward the top of the large $110 to $260 range.
Dogecoin price analysis
Dogecoin (DOGE) rose and closed above the 20-day EMA ($0.18) on March 25, suggesting the start of a sustained recovery.
DOGE/USDT daily chart. Source: Cointelegraph/TradingView
The DOGE/USDT pair is facing selling at the 50-day SMA ($0.21). If the price rebounds off the 20-day EMA, it will signal buying on dips. The bulls will try to propel the pair to $0.24 and later to $0.29.
On the other hand, if the price skids below the 20-day EMA, it will indicate that bears continue to sell on rallies. The pair may drop to $0.16 and then to the crucial support at $0.14.
Cardano price analysis
Cardano (ADA) bulls pushed the price above the 50-day SMA ($0.75) but are struggling to sustain the higher levels.
ADA/USDT daily chart. Source: Cointelegraph/TradingView
If the price breaks below the 20-day EMA, the bears will attempt to pull the ADA/USDT pair to the uptrend line. This is an important level for the bulls to defend because a break below it could tilt the advantage in favor of the bears. The pair could then descend to $0.58 and, after that, to $0.50.
If buyers want to seize control, they will have to push and maintain the price above the 50-day SMA. If they manage to do that, the pair could rise to $0.84. This level may act as a strong resistance, but if the bulls prevail, the pair may climb to $1.02.
Related: Bitcoin price just ditched a 3-month downtrend as ‘key shift’ begins
Chainlink price analysis
Chainlink (LINK) has moved up to the 50-day SMA ($16.12), which is likely to act as a stiff resistance.
LINK/USDT daily chart. Source: Cointelegraph/TradingView
If the price turns down from the 50-day SMA, the LINK/USDT pair may find support at the 20-day EMA ($14.75). A strong rebound off the 20-day EMA increases the likelihood of a break above the 50-day SMA. The pair could climb to $17.7 and later to the resistance line.
If bears want to prevent the upside, they will have to swiftly pull the price back below the 20-day EMA. The pair could slump to $13.82 and thereafter to the channel’s support line.
Avalanche price analysis
Avalanche’s (AVAX) relief rally rose above the 50-day SMA ($22.10) on March 25, indicating that the downtrend could be ending.
AVAX/USDT daily chart. Source: Cointelegraph/TradingView
The 20-day EMA ($20.42) has started to turn up, and the RSI has jumped into the positive zone, signaling an advantage to buyers. If the AVAX/USDT pair turns down from the current level but finds support at the 20-day EMA, it suggests a change in sentiment from selling on rallies to buying on dips. That improves the prospects of a rally to $27.23.
On the contrary, a break and close below the 20-day EMA signals a range formation between $25.12 and $15.27.
Stellar price analysis
Stellar (XLM) recovered to the breakdown level of $0.31, where the bears are expected to mount a strong defense.
XLM/USD daily chart. Source: Cointelegraph/TradingView
If the price turns down from $0.31 and breaks below $0.27, it will suggest that the bears are active at higher levels. That heightens the risk of a drop to the critical support at $0.22, where buyers are expected to step in.
Alternatively, a break and close above $0.31 signals that the markets have rejected the breakdown. The XLM/USDT pair may rise to the downtrend line, which could again pose a substantial challenge. A break and close above the downtrend line suggests a potential trend change.
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.
Trump’s USD1 stablecoin deepens concerns over conflicts of interest
World Liberty Financial (WLFI), the Trump family’s crypto project, is planning to release a stablecoin, raising concern over the US president’s exposure to the digital asset industry.
The project released a memecoin immediately prior to President Donald Trump’s inauguration, the price of which skyrocketed and crashed soon after, causing many to accuse WLFI of a pump-and-dump scheme.
WLFI has also made multimillion-dollar purchases of crypto tokens immediately prior to important crypto-related events the president has attended or announcements influencing the industry. WLFI purchased $20 million of various tokens ahead of the March 7 White House Crypto Summit.
As World Liberty Financial’s portfolio grows and regulator oversight disappears from the crypto industry, observers and legal scholars are becoming increasingly concerned over conflicts of interest within the Trump administration.
Son Eric Trump pumps his father’s memecoin ahead of the inauguration. Source: Eric Trump
Trump’s stablecoin USD1 riddled with liabilities
WLFI announced on March 25 that it will launch the new stablecoin USD1, “100% backed by short-term US government treasuries, US dollar deposits, and other cash equivalents.”
WLFI co-founder Zach Witkoff said in the announcement that the coin can be used for “seamless, secure cross-border transactions.”
News of USD1’s forthcoming release came just days after WLFI secured more than $500 million through the sale of its own $WLFI tokens.
Observers have already begun to raise the alarm about the possible security risks posed by a stablecoin connected to the president. There are also concerns over the possibility of market manipulation and violations of the emoluments clause of the US Constitution — a section of the document that protects against undue influence over American leaders.
As regards the latter, cyber and digital media attorney Andrew Rossow told Cointelegraph that the stablecoin is “a direct affront to constitutional safeguards meant to prevent conflicts of interest.”
“With Trump and his family controlling 60% of World Liberty’s equity interests, the USD1 stablecoin could facilitate indirect financial gains or undue foreign influence over US policy, particularly if foreign entities invest in or use the stablecoin.”
WLFI makes up a sizeable chuck of Trump’s estimated net worth. Source: Fortune
Corey Frayer, who worked on crypto policy at the SEC under former President Joe Biden, said that the project’s emphasis on cross-border payments was particularly worrisome and that foreign entities may invest as a way to gain favor with Trump.
“There’s a lot of opacity around this marketplace, and prior relationships with illicit finance,” Frayer told The New York Times.
US policymakers have already noted the possibility for foreign influence following the launch of Trump’s eponymous memecoin in January.
At the time, Democratic Representative Maxine Waters — a top Democrat on the House Financial Services Committee — wrote that “Anyone globally, even individuals who have been sanctioned by the U.S. or banned from our capital markets, can now trade and profit off of $TRUMP through various unregulated platforms.”
Related: Congress repealed the IRS broker rule, but can it regulate DeFi?
In addition to potential foreign influence, observers are concerned that Trump’s crypto ventures could threaten market stability and integrity, and open up global markets to manipulation.
Referencing USD1, Heath Mayo — the founder of the Trump-alternative conservative movement Principles First — said that a sitting president issuing an instrument backed by public debt should be illegal, adding that the project had “terrible incentives and corrupt use of US taxpayer credit.”
Rossow said that the president’s role in a stablecoin project while at the same time working to craft stablecoin legislation in the form of the GENIUS Act is “a constitutional violation that could destabilize regulatory integrity.”
Trump’s influence over the industry and ability to drop enforcement actions against crypto executives who support him creates “an uneven playing field, disadvantaging competitors and violating principles of equal protection under the law.”
What options do regulators have regarding Trump’s crypto conflicts of interest
Trump, who has long stated an affinity with former President Andrew Jackson, seems to be holding to the latter’s strategy of acknowledging judicial rulings — and then doing what he wants regardless.
The presidential administration has already shown that it is willing to defy orders from federal judges when, earlier this month, it ignored a verbal order from a federal judge to turn around two planes full of alleged gang members bound for the Terrorism Confinement Center in El Salvador.
Regarding crypto, Senator Elizabeth Warren has already called for an ethics probe into Trump’s crypto activities. She said that the president’s memecoin “massively enriched Trump personally, enabled a mechanism for the crypto industry to funnel cash to him, and created a volatile financial asset that allows anyone in the world to financially speculate on Trump’s political fortunes.”
Warren, a long-time crypto critic, has taken aim at WLFI. Source: Senate Banking Committee
The probe, if it had a chance to begin with, doesn’t appear to have gone anywhere, and Congressional Republicans are busy working on the GENIUS Act, which even has the support of a handful of Democrats.
What, if anything, can be done?
Rossow said that, despite changes in SEC leadership, other agencies like the Financial Crime Enforcement Network could still pursue investigations.
He also noted that state-level action from local regulators and Attorneys General is “not just possible but imperative, especially in states with robust consumer protection laws.
He added that international regulatory bodies could exert pressure, stating that the “global nature” of crypto means that foreign governments could work for better oversight and more robust regulations.
Related: Who’s running in Trump’s race to make US a ‘Bitcoin superpower?’
In any case, he said that the current situation demands multi-faceted action as there is currently a need to “safeguard the principles of fair governance and maintain the US’s credibility in the global financial system.”
Some in the crypto industry see no problem at all and believe the president’s involvement is just another sign of how the industry is reaching mainstream appeal.
Chris Barrett, senior director of communications at Chainlink, congratulated the project, stating that “The global financial world runs on the U.S. dollar, and stablecoins are about to make that even harder to change.”
Arnoud Star Busman, CEO of European stablecoin issuer Quantoz Payments, told Cointelegraph that USD1 is reflective of “increasing validation from world-leading brands that stablecoins are carving the path for the mainstream financial industry to access crypto assets and tokenized real-world assets.”
The Blockchain Association — an industry lobby group — declined Cointelegraph’s request for comment.
Magazine: Arbitrum co-founder skeptical of move to based and native rollups: Steven Goldfeder
Can Strategy’s MSTR Price Surpass $1,000 In 2025?
In a recent in-depth video analysis, Matt Crosby, the lead analyst at Bitcoin Magazine Pro, explores the data-driven potential of Strategy’s (formerly MicroStrategy, Nasdaq: MSTR) stock to reach or exceed the $1,000 mark. You can watch the full video here: Will MicroStrategy Realistically Surpass $1,000 – Data Analysis
Strategy’s Strategic Bitcoin Accumulation: Over 500,000 BTC
Strategy, under the leadership of Michael Saylor, has firmly positioned itself as a Bitcoin-centric company. In less than five years, it has accumulated over 500,000 BTC—accounting for more than 2.5% of Bitcoin’s total supply—turning its stock into a proxy for Bitcoin exposure.
Figure 1: The number of BTC held by Strategy over time. View Live Chart Here. Strategy Data Dashboard: A New Tool from Bitcoin Magazine Pro
The video introduces the new Treasury Analytics dashboard on BitcoinMagazinePro.com. This tool provides vital insights into Strategy’s:
- Real-time Bitcoin holdings
- Net Asset Value (NAV) premiums
- Stock price data
- Historical volatility
This dashboard empowers investors to assess the intrinsic value of MSTR and its correlation to Bitcoin price movements.
Can Strategy’s MSTR Price Reach $1,000? Data-Backed Scenarios
Matt Crosby walks through multiple valuation models based on the following assumptions:
- Bitcoin price levels at $100K, $150K, and $200K
- BTC holdings expanding to 700K or even 800K BTC
- NAV premiums ranging from 2x to 3.5x
Using these inputs, Crosby outlines realistic Strategy stock price targets between $950 and $2,000. In ultra-bullish scenarios, extreme targets of $15,000 or even $25,000 are modeled, though acknowledged as speculative.
Capital Raises Fuel Future BTC Accumulation
To support further Bitcoin acquisition, Strategy is leveraging several financial instruments:
- A $2.1 billion at-the-money stock offering
- A $711 million perpetual preferred stock issuance
These capital raises could enable the company to purchase an additional 200K to 300K BTC.
MSTR Insights Based on Numbers
For investors closely tracking Strategy (MSTR), the numbers tell a powerful story:
- 500,000+ BTC Accumulated: Strategy now holds over 2.41% of all Bitcoin that will ever exist — making it the go-to public stock for BTC exposure.
- From $9 to $543: Since 2020, MSTR’s stock has soared from around $9 to over $543 (adjusted for stock splits), thanks largely to its Bitcoin accumulation strategy.
- Revenue vs. BTC Value: While Strategy pulled in $463 million in software revenue in 2024, its Bitcoin holdings are worth around $43 billion — it would take a century of software sales to match its BTC portfolio.
- Capital to Buy More BTC: The company is raising $2.1 billion through stock offerings and has already secured $711 million via preferred shares — funding that could add another 200K–300K BTC to its balance sheet.
- NAV Premiums Matter: At times, MSTR has traded at a 3.4x premium to its net asset value. The current premium is around 1.7x, with room to expand in a bullish market.
- Higher Volatility Than BTC: MSTR’s price swings are more intense than Bitcoin’s — its 3-month volatility peaked at 7.56%, compared to BTC’s 3.32%.
- Deeper Drawdowns in Bear Markets: In past down cycles, BTC lost about 80%, but MSTR fell as much as 90%, showing it tends to amplify Bitcoin’s moves.
Together, these figures highlight both the massive upside potential and the high volatility risk that come with investing in Strategy.
Strategy vs. Bitcoin: Volatility and Correlation Analysis
Crosby points out that Strategy tends to move even more sharply than Bitcoin. Over the past three months, Bitcoin’s volatility averaged around 3.32%, while MSTR’s volatility reached 7.56% — more than double.
Looking back at bear markets, Bitcoin typically retraced about 80%, but Strategy’s stock fell closer to 90%. This highlights that Strategy doesn’t just follow Bitcoin — it amplifies it. That means bigger gains in bull markets, but also steeper losses during downturns.
Limitations: Will Strategy Ever Rival Apple in Market Cap?
While the numbers might hint at sky-high stock price possibilities, reaching them is another story. For Strategy to seriously compete with tech giants like Apple, it would need to:
- Accumulate between 850,000 and 1 million BTC
- See Bitcoin’s total market cap rise above gold’s $20 trillion
- Sustain a net asset value (NAV) premium of 3x to 4x consistently
Even if all that happened, Strategy’s market cap would need to grow by 45 times to match Apple’s $3.3 trillion valuation. That kind of leap is extremely unlikely in this current cycle — it’s more of a long-term, speculative scenario.
Conclusion: Strategy’s MSTR Price Outlook is Bullish but Speculative
According to Matt Crosby’s analysis, Strategy’s MSTR price reaching $1,000 or even $2,000 is entirely within the realm of possibility during this market cycle—provided Bitcoin maintains its upward trajectory and investor sentiment remains bullish. These targets are grounded in data models that factor in current BTC holdings, potential future acquisitions, and historical NAV premiums.
However, this opportunity doesn’t come without its caveats. Strategy’s stock is known for its heightened volatility—often exceeding that of Bitcoin itself—which makes it a high-beta, high-risk investment vehicle. Investors considering MSTR should be prepared for significant price swings and prolonged drawdowns, particularly during Bitcoin market corrections.
That said, for long-term Bitcoin believers and those with a higher tolerance for risk, Strategy offers a compelling, leveraged play on the broader crypto market. With its continued accumulation strategy and substantial institutional backing, MSTR remains one of the most data-driven and high-conviction ways to gain exposure to Bitcoin’s future growth.
As always, potential investors should do their due diligence, factor in risk management strategies, and align their investments with personal financial goals and time horizons.
If you’re interested in more in-depth analysis and real-time data, consider checking out Bitcoin Magazine Pro for valuable insights into the Bitcoin market.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.
2 AI Stocks Down More Than 20% YTD to Buy Before They Soar
- The stock market has been a mixed bag for technology companies so far in 2025.
- Certain AI-focused companies experienced significant stock declines year-to-date, presenting potential buying opportunities.
- Investors looking to buy the dip may find value in these two tech companies currently trading well below their recent highs.
- Looking for actionable trade ideas to navigate the current market volatility? Subscribe here to unlock access to InvestingPro’s AI-selected stock winners.
As we navigate through 2025, the landscape of technology stocks presents both challenges and opportunities amid the recent market correction. Among the notable contenders are Block (NYSE:) and Datadog (NASDAQ:), both down significantly from the start of the year yet poised for a comeback.
With macroeconomic conditions showing signs of improvement and secular trends like cloud adoption and digital payments working in their favor, these stocks appear primed for a recovery.
For investors with a long-term horizon, buying these AI-driven innovators at their current discounted valuations could be a savvy move before they soar again.
1. Block: Financial Innovation Through AI
Block, formerly known as Square, has transformed from a simple payment processor into a financial ecosystem leveraging artificial intelligence across its product suite. The company operates two main segments: Square for merchants and Cash App for consumers, both increasingly powered by AI capabilities.
Source: Investing.com
Despite its innovation, Block’s stock has tumbled approximately 28% year-to-date in 2025, significantly underperforming the broader market. Even worse, shares are almost 40% below a recent 52-week peak of $99.25.
This decline stems largely from investor concerns about fintech valuations and increasing competition in the digital payments space. Additionally, Block’s significant holdings and cryptocurrency initiatives have faced headwinds as crypto markets experienced volatility in early 2025.
However, Block’s AI integration presents compelling reasons for optimism. The Jack Dorsey-led company has been implementing machine learning algorithms to enhance fraud detection, improve lending decisions for its Square Capital business, and personalize the user experience across its platforms. These AI initiatives are expected to drive operational efficiencies and expand margins over time.
Source: InvestingPro
Block’s Fair Value price sits at $86.98, as per the quantitative models in InvestingPro, suggesting a potential upside of 41.8% from current levels. The company’s return on equity of 5.6% demonstrates its ability to generate profits from shareholder investments, albeit at modest levels currently.
Analysts project EPS to reach $3.62 in FY2025, representing significant growth, with revenue expected to increase by 11.2%. While Block doesn’t pay a dividend, its strong cash position provides flexibility for future investments in AI and other growth initiatives.
2. Datadog: AI-Powered Observability Platform
Datadog, a leading cloud monitoring and analytics platform, has established itself as a critical infrastructure provider for companies navigating digital transformation. The company offers infrastructure and application performance monitoring, log management, and security monitoring tools that help businesses ensure their digital operations run smoothly.
Source: Investing.com
Despite its essential role in the modern tech stack, Datadog has seen its stock fall by about 23% in the year-to-date. Even more alarming, shares are down 35% from their recent high of $165.
This downturn can be attributed to several factors, including concerns about tech spending amid economic uncertainty, valuation pressures on high-growth tech stocks, and some profit-taking following strong gains in previous years.
However, Datadog’s AI capabilities represent a significant competitive advantage. The company has been integrating artificial intelligence throughout its platform to help customers detect anomalies, predict potential issues before they occur, and automate incident response. Datadog’s healthy cash flow and improving profitability further bolster the case for a rebound, as does its status as a potential S&P 500 candidate, which could attract institutional buying.
Source: Investing.com
Datadog’s consensus analyst recommendation is a “Strong Buy” with a mean price target of $159.48, suggesting a potential upside of 44.2% from current levels. The most optimistic analysts see the stock reaching as high as $230, representing over 100% upside potential.
Datadog’s financial health is rated as “GOOD” by InvestingPro, indicating solid fundamentals despite the recent stock performance. The company’s growth trajectory remains impressive, with revenue increasing by 26.1% in FY2024 to reach $2.68 billion. Analysts project continued strong growth, with revenue expected to increase by 18.9% in FY2025.
Conclusion
While Block’s and Datadog’s recent stock performances reflect broader market challenges and company-specific concerns, their strategic investments in AI and innovative technologies position them favorably for future growth.
Investors with a long-term perspective may find the current price dips an opportune moment to consider these AI-focused companies before they potentially rebound and soar in value.
Be sure to check out InvestingPro to stay in sync with the market trend and what it means for your trading. Whether you’re a novice investor or a seasoned trader, leveraging InvestingPro can unlock a world of investment opportunities while minimizing risks amid the challenging market backdrop.
Subscribe now and instantly unlock access to several market-beating features, including:
- ProPicks AI: AI-selected stock winners with proven track record.
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- Top Ideas: See what stocks billionaire investors such as Warren Buffett, Michael Burry, and George Soros are buying.
Disclosure: At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF (SPY), and the Invesco QQQ Trust ETF (QQQ). I am also long on the Invesco Top QQQ ETF (QBIG), Invesco S&P 500 Equal Weight ETF (RSP), and VanEck Vectors Semiconductor ETF (SMH).
I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.
How PlebLab Is Shaping The Future Of Bitcoin Startups In Austin
Born in the heart of Texas, PlebLab.dev is a well-known name within the Bitcoin start-up world. And yet, most people who have heard about this niche Bitcoin community in Austin are probably unaware of their wins and influence.
Started as a coworking space out of Capital Factory in 2021 by a couple of Bitcoin enthusiasts, PlebLab has grown into a Mecca of the Bitcoin start-up ecosystem in the United States. They host various events and meetups throughout the year and have become a reliable work environment for Bitcoiners, whether living in Austin or just passing through.
“In art school, I had this professor who’d make us stop after an hour of creating, walk around, and give honest feedback on each other’s work—it built a collaborative vibe where we can grow together. That stuck with me,” Car González, CEO of PlebLab, recalls. So when I took over PlebLab, I asked: ‘How do I make it more collaborative? How do I make it more about that, not just coworking?’ When you say coworking, it’s literally just working. How boring is that—working among other people who are also working? That’s not fun.”
Yet more than just a “coworking” space, PlebLab has become a “community accelerator for the Bitcoin era” with multiple successful Bitcoin companies and developer celebrities going through it since its inception.
Genesis
Car González, Keyan Kousha, and Kyle Murphy – foudners of PlebLab Founded out of the dream to build on Bitcoin and grow a local community, PlebLab got its first office in Capital Factory, a renown tech coworking hub in Austin in 2021. The three cofounders, Car González, Keyan Kousha, and Kyle Murphy started doing Bitcoin meetups that grew to crowds of over 200 people. Among them, various entrepreneurs and Bitcoin developers started to stick around, asking to co-work with them out of Capital Factory.
Over time PlebLab grew into different office locations, currently installed next to the Unchained Capital offices and the Bitcoin Park (Formerly Bitcoin Commons) in downtown Austin (at 6th St. and Congress Ave.). With more space, talent, and experience, PlebLab transformed from a coworking space into a mix between a hacker garage and a start-up incubator.
Today they offer various membership packages, mentorship, and a wealth of resources to start-ups that join them, but this is not a pay-to-play “Bitcoin We-work”: Memberships can be denied depending on the goals and purpose of the project. It’s more akin to a private Bitcoin club for builders and technologists than anything else.
“I really think we’re an accelerator for the Bitcoin era. How you do that in an open source, cypherpunk way is you don’t give somebody 500k on day one and say, ‘You got three months to make it or see you later.’ To me, that sounds like a fiat-era thing,” said Car.
Main Events
The main events held by PlebLab are Top Builder and Startup Day. Often taking place within six months of each other.
“Top Builder is the Top Chef of Bitcoin. We try to find the latest, greatest builders, pile them in, and get them to build an MVP or something pitchable,” said Car, describing the event which functions like a three-month hackathon, exposing finalists to VCs and angel investors.
Startup Day on the other hand is a short conference that provides a platform for Bitcoin start-ups to present their work, meet talent, and get exposure in the Bitcoin world. In Car’s words it is meant to “inspire people to go from the sidelines to building their own company. They’ll see themselves in those people talking on stage.”
Judge it by its Fruit
A variety of big names within the Bitcoin start-up world have spent time in PlebLab, Car was very hesitant to take credit for the work of others, and stressed his admiration for the founders and leaders whose journey he has witnessed.
“Seeing their journey go from a person you meet, shake hands with initially, to where they are—seeing the numbers they have, and when they get to a point like base camp, a raise, a pre-seed or seed”, Car said. “That base camp for me is just, ‘Cool, they did it.’ Now, let’s go help somebody else. That’s the thing I love—the shipment of the code, so to speak—We just try to be good stewards of that.”
Nevertheless, the track record is impressive. Here’s a quick overview of Bitcoin projects, companies, and developer celebrities closely associated with PlebLab:
Jippi – Winner of Top Builder 2025
Lead by Oliver, Jippi.app is a beautiful and fun Bitcoin app designed with Gen Z in mind. Echoing the success of Pokemon Go, Jippi invites young people to explore their cities in search of Bitcoin Beasts, charming little 3D creatures that hide in augmented reality, waiting for future owners with sats rewards.
The app has been in development for over a year and just last week won the first prize in PlebLab’s Top Builder competition among fierce competition. Mind-blowing to the judges and audience alike, Jippi has a live, functioning app, man-on-the-street surveys, and app tests in a local university. As well as a masterful presentation of the rationale and vision for Jippi, the app may have the potential to go viral in the United States — and with it bring a new generation into Bitcoin.
Stacker.news
Started in 2021 by one of PlebLab’s cofounders Keyan Kousha, Stacker.news has quickly become a hub of news for many tech-savvy Bitcoiners. Boasting an open source Lightning-powered Reddit, the platform has gathered an active and loyal fan base that reward each other with sats for every upvote, often being early to integrate the latest technologies in the Bitcoin-social media tech scene.
Zaprite
Started at the end of 2021 by John Magill, Zaprite has quickly grown into a full payment processing suite for businesses, supporting both Bitcoin and Lightning payment rails, settling to fiat as desired by merchants, supporting event ticketing and all the accounting and invoicing tools necessary for a modern merchant.
Zaprite made recent history by being the interface Donald J. Trump used to pay for a burger with bitcoin at the Bitcoin Pub Pub Key in New York.
(TRUMP BUYS BURGER WITH BITCOIN FROM ZAPRITE – EMBED)
Mutiny Wallet
Launched in early 2023 and led by celebrity Bitcoin developers Ben Carman and Tony Giorgio, Mutiny Wallet quickly gained popularity among Lightning power users as a fully featured and innovative Bitcoin app. It consistently integrated cutting-edge payments technology like e-cash-denominated payments and Nostr integration, while rocking its signature red-and-black color scheme.
Following the arrest of Samourai Wallet developers and the consequent chilling effect on Bitcoin self-custody wallet development, Mutiny Wallet announced it would be sunsetting the project, nevertheless demonstrating incredible technical ability and leaving behind a sophisticated set of open source software tools for the Lighting, Nostr, and e-cash ecosystem.
Nifty (Bitcoin++)
As a Bitcoin and Lightning developer, Nifty became famous for her developer education efforts via Base 58, her world-renowned developer events called Bitcoin++, her relentless work ethic, impressive travel schedule, and of course her charm, bringing together Bitcoin developer communities all over the world, multiple times a year.
Nifty has quickly become a recognized and influential figure in the Bitcoin start-up ecosystem, including a seat on the board of directors of Opensats, a public charity focused on funding open source Bitcoin projects of all types, with a special focus on Nostr – the Bitcoin native social media protocol. In her journey to stardom, she spent significant time at PlebLab, and is still often seen at Austin Bitcoin events.
Speaking of which, Nifty’s next Bitcoin++ event will be in Austin, TX on May 7-9, diving deep into the Bitcoin Mempool.
Supertestnet
An early member of the Plelab and Bitcoin Austin scene, Supertestnet appeared out of nowhere in 2021, quickly mastering the art of creating Bitcoin prototypes in JavaScript. He has since implemented cutting-edge Bitcoin technologies like BitVM, even participating in the first Ark mainnet pool, the only other noncustodial Bitcoin layer-2 scaling solution, and is an avid user of X and Nostr.
Supertestnet’s many open source projects, passion for Bitcoin, and unshakable integrity have granted him quick recognition in the Bitcoin start-up ecosystem and likely a fair mention in the annals of Bitcoin history.
Cascdr
Led by Jim, AI engineer and ruthless Bitcoin maxi, Cascdr’s mission is to bring the power of AI and Bitcoin together with strong privacy foundations and a full suite of cool AI apps and workflows. His most recent hit is PullThatUpJamie.ai a podcast search engine that transcribes voice content making it searchable, and facilitating the creation of sharable podcast clips.
BRANTA
Led by Keith, Branta is a cyber security company focused on limiting man-in-the-middle attacks for Bitcoin payments work flows, such as the injection of malicious addresses or invoices in a merchant interface. Grown from the PlebLab accelerator, Branta has already had successful pre-seed raises and was a top-five finalist at the Top Builder contest.
Topher
A renowned Bitcoin developer in his own right and a regular at PlebLab, Topher has shipped a variety of open source Bitcoin tools such as Tapscript, a library for managing Taproot, Schnorr Signatures, and Bitcoin transactions.
Among other things, Topher and Austin (app developer) are currently working on Frostr, a key management solution for private digital identities. Specifically, Frostr is built to solve issues of the sort in Nostr, the Bitcoin-adjacent social network protocol that’s become very popular with Bitcoin users. It reimagines “Frost,” the new and rising multisignature standard in Bitcoin wallets, and uses it to solve key rotation problems in Nostr. A bit of a technical project, but one which I believe is profoundly useful and I’ll be covering in more detail very soon.
Christopher David, Open Agents
Christopher, a seasoned Bitcoin developer and entrepreneur, is currently working on Open Agents, an AI platform with deep integration with Git processes rocking a dark-cypherpunk aesthetic and a strong focus on the privacy of its users.
There are many more projects that are either in development or have gone through PlebLab through the years, if you are interested you can find them at PlebLab.dev.
As a bonus, I’ll leave you with this cool Bitcoin Magazine yoyo I happened to find at PlebLab.
How Trump tariffs dragged Bitcoin below $80K
Since US President Donald Trump’s inauguration on Jan. 20, Bitcoin (BTC) has swung from a record high of $109,000 to below $78,000 as major tariff announcements from the US and retaliatory moves from trade partners shaved off chunks of cryptocurrency market value and rattled global markets.
“The back-and-forth on tariffs, with Trump sometimes tough and sometimes accommodating, has left markets in a limbo state, where few people are willing to be decidedly bullish but just as few are willing to part with their assets, fearing to be left on the side-lines at the next rally,” Justin d’Anethan, head of sales at Liquify, told Cointelegraph.
By mid-March, investors began regaining confidence as White House messaging pointed to a more measured approach. But mixed signals remain, and with a second wave of “reciprocal tariffs” looming on April 2 — dubbed Liberation Day — market jitters haven’t fully subsided.
Trump’s trade war saga has rattled global markets but evolved to a softer stance by late March.
Colombian tariff standoff and DeepSeek disruption shakes Bitcoin
Bitcoin hovered above $100,000 until Jan. 26, when Trump threatened 25% tariffs on all Colombian imports after Colombian President Gustavo Petro refused to accept US military aircraft carrying deported migrants. Petro accused Trump of mistreating immigrants and retaliated with tariffs of his own.
Colombia quickly reversed course — agreeing to accept deportees — after facing pressure over its dependence on US trade. Bitcoin reclaimed $100,000 shortly after. But market sentiment was further shaken by the sudden rise of Chinese AI firm DeepSeek, whose budget-built model sparked fears of disruption in the tech sector and contributed to risk-off sentiment across markets.
Bitcoin’s dip below $100,000 in late January coincided with US tariffs standoff with Colombia and the rise of DeepSeek. Source: CoinGecko
Tariff war begins and Bitcoin racks losses
On Feb. 1, Trump signed an executive order to impose 10% tariffs on all Chinese imports and 25% on Canadian and Mexican goods, effective Feb. 4, citing national emergency over immigration and fentanyl. China, Canada and Mexico all threatened retaliation.
Bitcoin tumbled below $93,000, rebounding only after Trump agreed to a 30-day pause on the Canada and Mexico tariffs on Feb. 3. But the Chinese tariffs took effect as scheduled on Feb. 4 — and that was the last time Bitcoin traded above $100,000.
Bitcoin’s falls as Trump signs executive order, its subsequent recovery was a dead cat bounce. Source: CoinGecko
Bitcoin remained volatile through mid-February. On Feb. 10, Trump announced the removal of steel and aluminum tariff exemptions, raising all metal tariffs to 25%, effective March 12. He then unveiled a “reciprocal tariffs” plan to match foreign import taxes.
Bitcoin held steady around $93,000 and briefly rallied to $99,000. But on Feb. 21, the momentum collapsed following the Bybit hack — the largest crypto breach in history — sending Bitcoin back below $90,000.
Related: In pictures: Bybit’s record-breaking $1.4B hack
Bitcoin falls just before reaching $100,000 following Bybit hack, then copper tariff. Source: CoinGecko
On Feb. 25, Trump added to bearish pressure by ordering a review of potential tariffs on imported copper, citing national security. Bitcoin dipped below $80,000 for the first time since November.
March shows signs of relief for Bitcoin
March kicked off with Trump issuing another order reviewing tariffs on lumber and timber. But crypto briefly rallied after the White House unveiled plans for a Strategic Bitcoin Reserve and digital asset stockpile — including XRP, SOL, and ADA.
On March 4, Trump followed through with 25% tariffs on Canada and Mexico, and doubled Chinese tariffs to 20%. All three countries vowed to retaliate. The next day, Trump granted a one-month exemption on tariffs for US automakers importing from Canada and Mexico. A day later, the White House extended the tariff pause on many imports that qualify under the USMCA, while still threatening reciprocal tariffs on April 2.
Related: Does XRP, SOL or ADA belong in a US crypto reserve?
Trump credited Mexican President Claudia Sheinbaum for “unprecedented” border cooperation. Canada also signaled easing tensions. Bitcoin see-sawed on the $90,000 mark but eventually dipped below on March 7, and it has not reclaimed that level at the time of writing.
Meanwhile, Trump finalized the steel and aluminum hikes. Then on March 13, he threatened 200% tariffs on European wine, champagne and spirits if the EU moved forward with a 50% tax on American whiskey as a retaliation against steel and aluminum tax.
Bitcoin trades at around $84,000 on March 1 and March 16 despite large swings in between. Source: CoinGecko
Tone softens and Bitcoin starts rebound but ‘Liberation Day’ looms
By mid-March, the administration’s tone began to soften. On March 18, Treasury Secretary Scott Bessent said tariffs would be tailored to each country’s trade practices and could be avoided entirely if partners lowered their own barriers.
Financial markets, rattled for weeks, began to recover. On March 24, Bitcoin rose to $88,474 on reports that Trump’s next round of tariffs would be more targeted than initially feared.
Softer White House tone sparks Bitcoin recovery. Source: CoinGecko
“In the week leading up to Trump’s reciprocal tariffs on April 2, expect market volatility, corporate lobbying for exemptions, preemptive price hikes, and global diplomatic efforts to mitigate the impact,” Ryan Lee, chief analyst at Bitget Research said in a written analysis shared with Cointelegraph.
“After the tariffs take effect, anticipate inflation spikes, supply chain disruptions, and mixed job outcomes, with potential stock market shocks and retaliatory trade measures from partners like China and Canada possibly slowing US economic growth.”
Meanwhile, Liquify’s d’Anethan said investors should continue monitoring traditional market developments, especially with Bitcoin’s rising correlation with traditional indexes.
“With BTC’s correlation to the S&P 500 and other traditional assets, it wouldn’t be silly to discount tariffs and geopolitical maneuvering,” he said.
With April 2 approaching, crypto markets remain fragile — and investors are bracing for what “Liberation Day” might bring. Trump recently hinted while speaking to reporters that tariffs on automobiles, aluminum and pharmaceuticals are under consideration.
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