On Wednesday, the trading activity in the cryptocurrency market cooled down slightly. By the end of the day, the total market value of cryptocurrencies had dropped by 1.2% to $2.6 trillion.
Bitcoin and Ethereum faced resistance at key levels. The high point for Bitcoin was $71,754, then it retraced to $69,793, a decrease of 1.2%. Ethereum’s current trading price is $3,516, down 1.35% in the past 24 hours.
In the altcoin market, the native tokens of blockchain AI concept projects Fetch.ai, SingularityNET, and Ocean Protocol surged in the proposed merger plan called the “Artificial Superintelligence (ASI) Alliance.” These projects’ tokens will be named Artificial Superintelligence (ASI). As a result of this news, the existing tokens of these three projects saw significant increases in the past 24 hours. Fetch.ai (FET) rose by 15%, SingularityNET (AGIX) rose by 12%, and Ocean Protocol’s token OCEAN had the largest increase, rising by over 36%. The three projects have submitted integration proposals to their respective governance communities today and have started a 14-day consultation period. The voting for the proposals is expected to take place between April 2nd and April 16th.
Base Chain continues to lead the meme trend, with the most popular meme token BRETT rising by 11% in the past 24 hours. BRETT is inspired by the cartoon character drawn by artist Matt Furie and had a market value close to $500 million at one point. Coingecko wrote in a newsletter, “It is now evident that meme coins have evolved into a critical tool driving adoption of new blockchains.”
However, this speculation has caught the attention of regulators. The Financial Conduct Authority (FCA) in the UK issued a warning to key opinion leaders (KOLs) to be careful with “misleading” meme projects in the crypto space. Promotions for these projects require regulatory approval to avoid potential criminal charges. The FCA has listed meme projects as a key area of concern for online misconduct.
According to a recent report by Grayscale, market cycle indicators show that the cryptocurrency market is currently in the mid-term of a bull market, supported by strong fundamentals and technical factors. Despite the increase in the price of Bitcoin from $63,800 to $70,000 in the five days before March 27th, only $151 million of leveraged short positions were liquidated in the BTC futures market. This indicates that despite the net outflow of $888 million from US Bitcoin spot ETFs last week, short positions remain cautious.
On the positive side, Bitcoin has shown resilience, dropping from $73,757 on March 14th to $60,795 on March 20th without causing panic among spot ETF investors. This week, spot ETF inflows have reversed, recording a net inflow of $418 million on March 26th.
Furthermore, Grayscale’s report states that the amount of Bitcoin held by exchanges has significantly decreased, “reducing by 7% since the peak in partial Bitcoin supply in May 2023.” This suggests that part of the supply shortage is due to spot Bitcoin ETFs transferring BTC to cold wallets for long-term storage, as investors expect future price increases.
Has the pullback before the Bitcoin halving ended? Analyst Rekt Capital stated on X-platform that the price adjustment before the Bitcoin halving is consistent with historical pullbacks before halvings. In an article on March 25th, he wrote, “The pullback before the halving happened as expected. Bitcoin is now back around $70,000.”
In yesterday’s video analysis, Rekt Capital stated that if the historical high of $69,000 becomes a support level, the price of Bitcoin may break through to new all-time highs. He said, “Bitcoin has broken through its previous all-time high, preparing for the end of the pullback before the halving.”
According to a research report by Bitfinex analysts, last week’s price adjustment in Bitcoin indicates that the price has formed or is close to forming a local bottom. The analysts said, “We believe that Bitcoin’s retracement from the current all-time high of $73,666 last week, which represents a correction of about 17.5%, indicates that we are close to establishing a local bottom, and in fact, the market has already started to follow this pattern.”
Author: Mary Liu from Bitpush News
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