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cointelegraph.com Mar 20, 2025 04:41

Leveraged bets on FOMC meeting ‘guaranteed recipe to lose money’ — Trader - A crypto trader warns that going heavy on leverage before the monthly United States interest rate decision is a surefire way to lose money in crypto trading. After the Federal Reserve’s statement confirmed the US central bank intends to leave interest rates unchanged in its target range between 4.25% to 4.5%, Bitcoin’s price barely moved, as the market had already widely expected no change in the interest rate. However, after Fed chair Jerome Powell said the probability of a recession is “not high,” despite independent economists raising the odds of one, the overall crypto market saw an upswing, leaving traders betting on the downside caught off guard. “A guaranteed recipe to lose money,” MN Trading Capital founder Michael van de Poppe said in a March 19 X post. CoinGlass data, which tracks a 12-hour window, shows $188.77 million was liquidated from the crypto market, with $127.80 million of that being short positions.Approximately $257.03 million in short positions have been liquidated over the past 24 hours. Source: CoinGlassBitcoin (BTC) surged 3.84% in six hours after Powell’s speech to hit $87,427 before pulling back to $85,760 by publication. Ether (ETH) climbed 2.27% in the same period, while XRP (XRP) gained 2.40%, adding to its 7.50% rally leading into the interest rate announcement, according to CoinMarketCap data.“The initial statement isn’t as important. The words from J. Powell are,” van de Poppe said, adding, “That’s what likely defines Bitcoin price action for the coming period.” Bitcoin is up 3.49% over the past 24 hours. Source: CoinMarketCapRelated: Bitcoin risks new death cross as BTC price tackles $84K resistanceCrypto analyst says the Bitcoin rally will not continue in the near termCrypto trading account BitcoinHyper said, “FOMC meeting made Bitcoin pump directly into the big liquidation level.” “Even if BTC goes higher, this is not a good level to look for new long positions,” the trading account said.Matt Mena, crypto research strategist at 21Shares, made a similar forecast, saying that while the US Federal Reserve’s “dovish shift” on interest rates could give Bitcoin a short-term boost, it may not be sustainable.“Bitcoin is likely to remain in consolidation mode until a clear catalyst emerges,” Mena said. “Looking further ahead, the broader macro environment remains supportive of a bullish case for BTC,” Mena said in a statement viewed by Cointelegraph.According to Powell, the median forecast from FOMC members is that interest rates will be at 3.9% at the end of 2025 and 3.4% at the end of 2026.Magazine: Classic Sega, Atari and Nintendo games get crypto makeovers: Web3 GamerThis 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.

FOMO: 85%
cointelegraph.com Mar 20, 2025 04:54

US recession would be a big catalyst for Bitcoin: BlackRock - BlackRock’s head of digital assets, Robbie Mitchnick, says that Bitcoin will most likely thrive in a recessionary macro environment, contrary to what some analysts may think. “I don’t know if we’ll have a recession or not, but a recession would be a big catalyst for Bitcoin,” Mitchnick said in a March 19 interview with Yahoo Finance.Mitchnick said Bitcoin (BTC) is catalyzed by increased fiscal spending, deficit accumulation, lower interest rates and monetary stimulus — all of which tend to happen in recessions.“And it’s catalyzed to some extent over fears of general social disorder,” Mitchnick pointed out. “And that too, unfortunately, is something that can happen in a recession.”🚨 LATEST: BlackRock Global Head of Digital Assets Robbie Mitchnick says, “If you look at Bitcoin fundamentally on a long-term basis, it really seems like an asset that should be uncorrelated or even inversely correlated against certain risk factors that exist.” pic.twitter.com/bC0zKqF3xB— Cointelegraph (@Cointelegraph) March 19, 2025The BlackRock executive said the market is “not particularly well calibrated” to Bitcoin, and many still view it as a risk-on asset.Risk-on assets, such as stocks, commodities and high-yield bonds, tend to suffer during times of economic crises, but Mitchnick said in September that he believed the asset was mislabeled. “But that’s where the opportunity comes in for education in a market and asset class that’s still very nascent.”Mitchnick said BlackRock has been helping some of its clients see through some of these conflicting narratives.He added that some of BlackRock’s more “sophisticated long-term Bitcoin accumulator” clients see the market correction as a buying opportunity and aren’t bothered by the current economic headwinds.Meanwhile, researchers from cryptocurrency exchange Coinbase were less bullish, saying crypto’s positive outlook for the first quarter had “clearly been misplaced” by recession fears and the recent tariffs imposed.“Fears of a dramatic US economic slowdown or even recession have caused sentiment to turn sharply,” Coinbase Institutional said in its monthly outlook report on March 17.Related: Crypto market’s biggest risks in 2025: US recession, circular crypto economyBlackRock has played a key role in the institutional and wealth advisory adoption of Bitcoin through its iShares Bitcoin Trust ETF — which holds the most net assets of any Bitcoin investment product at $48.7 billion.Mitchnick isn’t worried about the mass net outflows across most spot Bitcoin exchange-traded funds of late — pointing out that it has mostly come from hedge funds’ unwinding of the spot futures arbitrage trade, not the long-term buy-and-hold investors.Bitcoin is currently trading at $86,000, up 3.8% over the last 24 hours.Magazine: Meet lawyer Max Burwick — ‘The ambulance chaser of crypto’

FOMO: 88%
cointelegraph.com Mar 20, 2025 04:59

Bitnomial drops SEC lawsuit ahead of XRP futures launch in the US - Crypto exchange Bitnomial has voluntarily dismissed its lawsuit against the US Securities and Exchange Commission ahead of launching its Ripple XRP futures in the United States.The Chicago-based firm said in a March 19 statement to X that its XRP (XRP) futures are regulated by the US Commodity Futures Trading Commission and will be available from March 20 for current users.“Bitnomial is launching the first-ever CFTC-regulated XRP futures in the US — physically settled for real market impact,” Bitnomial said.“Plus, we’ve voluntarily dismissed our case against the SEC as regulatory clarity improves,” it added.Source: Bitnomial The exchange filed a self-certification with the CFTC to list XRP futures contracts on its exchange in August 2024. However, the SEC blocked the move, pushing for Bitnomial to register as a securities exchange before it could list the futures.Bitnomial sued the SEC and its five commissioners on Oct. 10, accusing the agency of overextending its jurisdiction by claiming that XRP is a security.Bitnomial’s XRP futures launch follows Ripple CEO Brad Garlinghouse’s March 19 announcement the SEC opted out of continuing an appeal against a ruling labeling XRP as not a security for retail sales.A July 13, 2023 judgment from Judge Analisa Torres deemed XRP is not a security for retail sales; however, she opined it was when sold to institutional investors, as it met the conditions set in the Howey test. The SEC was appealing Torres’s decision.The SEC initially launched legal action against Ripple Labs in December 2020, accusing the firm of illegally selling its token as an unregistered security.Related: Vermont follows SEC’s lead, drops staking legal action against CoinbaseUnder the Trump administration, the SEC has slowly been walking back its hardline stance toward crypto forged under former SEC Chair Gary Gensler’s reign, dismissing a growing number of enforcement actions against crypto firms.The agency’s acting chair, Mark Uyeda, who took the reins after Gensler resigned on Jan. 20, flagged plans on March 17 to scrap a rule proposed under the Biden administration that would tighten crypto custody standards for investment advisers.Uyeda also said in a March 10 speech that he had asked SEC staff for options to abandon part of proposed changes that would expand regulation of alternative trading systems to include crypto firms, requiring them to register as exchanges. Magazine: SEC’s U-turn on crypto leaves key questions unanswered

FOMO: 90%
cointelegraph.com Mar 20, 2025 06:28

$77K likely the Bitcoin bottom as QT is ‘effectively dead’ — Analysts - Bitcoin is unlikely to revisit the $77,000 price level anytime soon after the Fed signaled a slowdown in quantitative tightening (QT), says BitMEX co-founder Arthur Hayes.On March 10, Bitcoin (BTC) dipped near the $77,000 level for the first time since November, according to CoinMarketCap data.“Was BTC $77k the bottom, prob,” Hayes said in a March 20 X post after declaring that QT is “basically over” following the Fed’s March 19 announcement that starting in April, it will slow its securities sell-off by reducing the monthly Treasury cap from $25 billion to $5 billion. Bitcoin is up 3.53% over the past seven days. Source: CoinMarketCapThis could ease liquidity pressures and support risk assets like Bitcoin, as QT involves central banks selling assets to reduce the money supply and possibly raise interest rates. “The next thing we need to get bulled up for realz is either SLR exemption and or a restart of QE,” Hayes added.The Supplementary Leverage Ratio (SLR) exemption was a temporary rule during the COVID-19 pandemic that allowed banks to exclude US Treasury securities from their SLR calculations. Meanwhile, quantitative easing (QE) is a monetary policy that aims to stimulate the economy and encourage more spending.Echoing a similar sentiment to Hayes, Real Vision chief crypto analyst Jamie Coutts said in a March 19 X post that “QT is effectively dead.” Coutts explained that “treasury volatility” has calmed down following the US dollars drop earlier this month, a positive signal for boosting liquidity.Other optimists included Axie Infinity co-founder Jeff “JiHo” Zirlin, who said the Fed slowdown is “great for both crypto and equity markets.”“The Fed has significant leeway to loosen up, providing more support for businesses + markets,” Zirlin said, while Bitcoin venture capitalist Mark Moss said that with QT ending, “the dam is going to break.”Related: Bitcoin risks new death cross’ as BTC price tackles $84K resistanceMeanwhile, crypto market sentiment has spiked following the Fed’s comments. The Crypto Fear & Greed Index, which tracks overall sentiment, has moved into “Neutral” territory at 49 after lingering in the “Fear” area since Feb. 26.Despite Bitcoin being down nearly 22% from its January $109,000 all-time highs, Infinex founder Kain Warwick told Cointelegraph that it is a “normal mid-bull correction.”“I would need to see a much larger breakdown to flip bearish,” Warwick said. “My baseline thesis is the four-year cycle holds once again, which means we keep grinding up through the rest of the year.”Magazine: Classic Sega, Atari and Nintendo games get crypto makeovers: Web3 GamerThis 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.

FOMO: 85%
cointelegraph.com Mar 20, 2025 06:30

Pakistan eyes crypto legal framework to spur foreign investors - Pakistan is planning to create a legal framework for crypto to try to lure international investors to the Central Asian country.“Pakistan is done sitting on the sidelines; we want to have regulatory clarity; we need to have a legal framework that is pro-business,” Pakistan Crypto Council CEO Bilal Bin Saqib told Bloomberg on March 20.“We want Pakistan as the leader in blockchain-powered finance, and we want to attract international investment,” he added. “Sixty percent of the population is under 30 [years old], we have a Web3-native workforce ready to build.”Earlier this month, Saqib was named chief adviser to Pakistan’s finance minister for the management of cryptocurrencies.Blockchain analytics firm Chainalysis ranked Pakistan ninth for crypto adoption last year, and Saqib claimed there were up to 20 million Pakistani crypto users.Related: Web3 devs, gamers, investors thrive despite India’s crypto policy hurdlesHe called US President Donald Trump “the biggest bullish catalyst for crypto in history.” Trump has moved to create a Bitcoin reserve and crypto stockpile using digital assets forfeited to the government.“Trump is making crypto a national priority, and every country, including Pakistan, will have to follow suit or will be at the risk of being left behind,” Saqib said. Saqib was appointed as CEO of the Pakistan Crypto Council on March 14 by the Finance division of the current Pakistan government. “This is just the beginning, Pakistan is open for business,“ he said at the time. According to Saqib, developing nations such as Pakistan and Nigeria have a lot to benefit from blockchain and crypto adoption. He said:“By leveraging blockchain for remittances and trade, both nations can reduce reliance on traditional banking, lower 5-9% fees, and create seamless cross-border payment networks. “Magazine: How crypto laws are changing across the world in 2025

FOMO: 88%