Crypto market completes initial rebound, nearing key resistance

Market picture

The cryptocurrency market has added 1.3% in the last 24 hours to $3.24, approaching the upper boundary of the consolidation range after the collapse in early February. Only the ability to rise above $3.3 trillion would signal an exit from consolidation and be a prologue for a return to the $3.50 area or a move to all-time highs near $3.70.

Bitcoin has risen to $98,000, once again trying to break above the 50-day moving average. As with the crypto market, Bitcoin has found enough buyers on dips and has done the easy part with a return to meaningful resistance levels. Only a confident move higher will mark the start of a new rally phase.

News background

JPMorgan notes that the observed weakening of institutional demand for Bitcoin and Ethereum futures on the CME is a bearish signal for the near term. The lack of positive catalysts and fading price momentum are the reasons.

QCP Capital records demand for high delta call options on Bitcoin, indicating growing expectations of strong price growth in the future. Implied volatility has shifted in favour of calls across all maturities, indicating bullish market positioning.

Trump linked Bitcoin's highs to his policies. According to him, BTC has set new records because everyone knows he is committed to making the US the crypto capital of the world.

Stacks platform CEO Muneeb Ali said most second-tier bitcoin-based projects will disappear within three years. He said the market is evolving in a highly competitive environment, and enthusiasm around L2 solutions has waned markedly.

The CBOE has filed a Form 19b-4 proposal with the SEC asking it to approve staking in 21Shares' Ethereum-based ETF. The NYSE previously filed a similar proposal for Grayscale's Ethereum-ETF.

The SEC has softened its stance on regulating cryptocurrencies and DeFi. The regulator filed a motion to withdraw an appeal of a ruling limiting the application of securities laws to users of cryptocurrencies and DeFi services.

Ten companies have been approved to issue stablecoins in the European Economic Area (EEA) under MiCA rules. Tether, the USDT issuer, is absent from the list. Circle, the issuer of USDC, the main competitor of USDT, received the right to issue stablecoins in the EEA back in July.

Solana's (SOL) annual inflation rate rose 30.5% after the implementation of a new fee allocation model on the platform (SIMD-0096), Blockworks notes. Recent scandals surrounding LIBRA, and previously TRUMP, MELANIA, BARRON and HAWK, have undermined Solana's reputation and increased pressure on the altcoin market.