The crypto market is experiencing a wave of volatility, with Bitcoin’s price retracing by 12% and altcoins facing de-risking. This phenomenon often precedes downturns in equities, raising concerns about the potential impact on the S&P 500.
The recent 12% retracement of bitcoin‘s price has filled the latest CME gap, a phenomenon that has occurred 80 times since bitcoin futures launched in December 2017. According to RiggsBTC, only one unfilled gap remains at $21,000.
Bitcoin is a decentralized digital currency that was created in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto.
It uses cryptography to secure and verify transactions, allowing for peer-to-peer transfers without the need for intermediaries like banks.
Bitcoin's value has fluctuated significantly since its inception, with prices reaching as high as $64,000 in April 2021.
As of '2022' , it remains one of the most widely used cryptocurrencies globally.
The U.S. economy is facing slower growth due to fiscal cuts, trade uncertainties, and a weakening housing market. Inflation is expected to trend lower, with the Federal Reserve prioritizing employment over price control. Professor Satoshi, an analyst at Greeks Live Options Trader, predicts a potential S&P 500 drop to 5700-5500.
Professor Satoshi is a pseudonymous Japanese computer scientist and cryptographer.
His real name remains unknown.
In 2008, he published the Bitcoin whitepaper, outlining the concept of a decentralized digital currency.
The paper introduced 'a new form of electronic cash that uses cryptography for secure financial transactions.'
Professor Satoshi's true identity has been the subject of speculation and debate among cryptocurrency enthusiasts.
Despite numerous attempts to uncover his identity, it remains a mystery.
The crypto market is experiencing de-risking, which often precedes downturns in equities. ‘You can see altcoins got de-risked,’ said Professor Satoshi. ‘This means majors get de-risked afterward. Typically, it’s the crypto market down first, then equities follow.’
Professor Satoshi expects the Fed to likely skip a rate cut in March and the potential for a larger 50 bps cut in May. A potential return of quantitative easing in 2025 is also anticipated.
The Federal Reserve System, also known as the 'Fed' , is the central banking system of the United States.
Established in 1913, it is responsible for implementing monetary policy to promote economic growth and stability.
The Fed's primary functions include setting interest rates, regulating banks, and maintaining financial stability.
It has three key branches: the Federal Reserve Board, the Federal Open Market Committee, and 12 regional Federal Reserve Banks.
The strengthening Japanese Yen could be a warning sign, currently at its strongest level this year against the U.S. dollar at 148. Stay Alert!
- March 5: Ethereum testnet Sepolia receives the Pectra hard fork network upgrade
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March 6: Ethereum-based L2 blockchain MegaETH deploys its public testnet
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March 7: President Trump hosts the inaugural White House Crypto Summit
BTC is down 1.62% from 4 p.m. ET Monday at $84,001.60 (24hrs: -9.49%)
ETH is down 0.48% at $2,101.37 (24hrs: -0.48%)
MicroStrategy (MSTR): closed on Friday at $250.92 (-1.77%), down 1.63% at $246.82 in pre-market
Coinbase Global (COIN): closed at $205.75 (-4.58%), down 1.01% at $203.68
March 4: Livepeer (LPT) to be listed on Bitbank
March 6: THORChain processed record swaps in the week ending March 2, while blockchain analysis suggests hackers may have used the platform to move a significant amount of funds stolen from Bybit.
Global sovereign debt will rise 3% this year as defense spending, high interest rates and deficits drive borrowing, while investors like Pimco cut exposure to long-term government bonds over sustainability concerns.
