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cointelegraph.com Mar 20, 2025 10:41

Why is the crypto market up today? - The cryptocurrency market is up today, with the total market capitalization rising by approximately 3.2% in the last 24 hours to reach $2.8 trillion on March 20. The gains were led by Bitcoin (BTC) and Ether (ETH), which have risen around 3% and 4%, respectively.Crypto market performance Jan. 30. Source: Coin360Let’s look at the top catalysts driving the crypto market rebound today.Risk-on sentiment pushed the crypto market upThe crypto market rebound mirrors gains in US equities following the Fed’s decision to leave interest rates unchanged.The S&P 500 and the Nasdaq rose by 1.08% and 1.4%, during the late New York trading session on March 19. Crypto-related stocks also climbed higher, with crypto exchange Coinbase (COIN) rising by 4.75% and Strategy (MSTR) gaining nearly 7.4%.BREAKING: The S&P 500 adds +$500 billion of market cap today as the Fed extends their rate cut pause for the 2nd straight meeting. pic.twitter.com/948U2U7gKe— The Kobeissi Letter (@KobeissiLetter) March 19, 2025The US Dollar Index (DXY) remains at its lowest levels since early November and is down more than 6.04% from its Jan. 13 peak of 110.17. This comes after the Federal Open Market Committee (FOMC) meeting, which saw the US central bank leave interest rates unchanged at 4.25%-4.50%, meeting market expectations.The committee now projects two rate cuts by the end of the year.The latest data from CME Group’s FedWatch Tool sees 16% odds of a 0.25% cut in May with the odds increasing to 60.1% in June.Fed target rate probabilities for June 18 FOMC meeting. Source: CME GroupWith traders now pricing in a higher likelihood of rate cuts, risk assets, such as cryptocurrencies, have seen renewed interest from traders.Pro-crypto policy expectationsAdding to the market’s upward momentum is speculation that the US government was preparing an update to its cryptocurrency policy.Key takeaways:US President Donald Trump is expected to speak at Blockworks’ Digital Asset Summit (DAS) in New York City on March 20.BREAKING: President Trump will address DAS tomorrow This is the first time a sitting President has addressed a crypto conference. pic.twitter.com/x3gnGP0yAN— Blockworks (@Blockworks_) March 19, 2025There are speculations that Trump will make major updates to his administration’s crypto policies.“This would be his first major update since March 6, when the national crypto reserve was established,” capital markets commentator The Kobeissi Letter said in a March 19 post on X, adding:“Rumors state President Trump may be making a significant change to his strategy.”Trump’s recent comments about establishing a Strategic Bitcoin Reserve and his pro-crypto stance have sparked excitement among investors. Following his election, Bitcoin ETF inflows hit a record $3.4 billion per week, and Bitcoin breached the $100,000 level before setting a new all-time high above $109,000. This reflects institutional enthusiasm for a potentially crypto-friendly regulatory environment.Combined with the Fed’s dovish stance, this optimism has resulted in BTC price rebounding above $85,000.According to  BitMEX co-founder Arthur Hayes, “QT is basically over on April 1,” highlighting that markets should now focus on potential SLR exemption or restart of QE. Hayes believes $77,000 was the likely bottom for Bitcoin.JAYPOW delivered, QT basically over Apr 1. The next thing we need to get bulled up for realz is either SLR exemption and or a restart of QE. Was $BTC $77k the bottom, prob. But stonks prob have more pain left to fully convert Jay to team Trump so stay nimble and cashed up.— Arthur Hayes (@CryptoHayes) March 20, 2025Related: US recession would be a big catalyst for Bitcoin: BlackRockCrypto market technical reboundChart technicals show that the crypto market’s gains today are part of a rebound that started after the price dropped to a multimonth low of $2.44 trillion on March 11.TOTAL crypto market cap daily candle chart. Source: Cointelegraph/TradingViewThe total market cap, currently at $2.77 trillion, seeks to break above the resistance zone between $2.8 trillion and $3 trillion, where both the 200-day and 50-day SMAs sit.If this happens, it would signal a bullish breakout from the current downtrend, with bulls targeting all-time highs around $3.20 trillion, i.e., the 100-day SMA.Meanwhile, the daily RSI has jumped from near oversold conditions at 31 on March 11 to the 47, suggesting the bullish momentum is picking up.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.

FOMO: 90%
cointelegraph.com Mar 20, 2025 12:02

Why is Solana (SOL) price up today? - Solana (SOL) price is up today, buoyed by a significant recovery in the broader cryptocurrency market.Data from Cointelegraph Markets Pro and TradingView shows SOL’s price is trading at around $134, up more than 6% in the last 24 hours. Solana price has rebounded roughly 20% from its local low of around $112 reached on March 11.SOL/USD daily chart. Source: Cointelegraph/TradingViewSeveral factors driving the SOL price up today, including:SOL price rally comes following the launch of the first Solana futures ETF.Approximately $18 million in shorts were liquidated over the last 24 hours. SOL’s strengthening technicals target is $220.Launch of Solana futures ETF boosts SOL priceToday’s debut of Solana futures exchange-traded fund (ETF) by Volatility Shares has injected fresh enthusiasm into SOL investors. 🚨 BREAKING: The first-ever Solana futures ETFs are launching tomorrow.Volatility Shares is debuting two ETFs:• SOLZ: Tracks Solana futures• SOLT: Offers 2x leveraged exposure pic.twitter.com/Wt2gt6oBPc— Cointelegraph (@Cointelegraph) March 19, 2025Key takeaways:Volatility Shares, a US-based investment firm, is set to launch the first-ever Solana futures ETFs on Thursday, March 20. A filing with the Securities and Exchange Commission (SEC) reveals that two Solana-based ETFs issued by Volatility Shares ETFs will begin trading on Thursday, March 20.These include Solana ETF (SOLZ), which will track Solana futures and the Volatility Shares 2X Solana ETF (SOLT), which offers leveraged exposure.SOLZ will have a management fee of 0.95%, while traders will be charged 1.85% for SOLT.The ETFs, following a path similar to Bitcoin and Ethereum futures products, signal growing institutional acceptance and provide easier access for traditional investors.Market participants believe that the launch of these funds could be significant in the approval of a spot Solana ETF.Several issuers, including Grayscale, Franklin Templeton and VanEck, have applied for spot Solana ETFs, which are yet to be approved by the SEC. Bloomberg ETF analysts believe there is a 75% chance of approval by this year’s end.Analysts see this as a regulatory green light, boosting confidence in Solana and across the broader market.“​​Solana ETF dropping right after BTC/ETH ETFs? The TradFi gates are opening wide,” said crypto analyst Kolin in a March 19 post on X.“Futures are just the start - spot ETF inevitable. $SOLs just warming up and the Solana ecosystem’s about to get flooded with institutional liquidity.”“This is wild,” asserted Bloomberg Senior ETF analyst Eric Balchunas in response to the developments, adding that it is probably a good sign as Solana futures “arguably bode well for spot ETF odds.”Short liquidations push SOL price higherSolana’s price rise on March 20 is accompanied by significant liquidations in the derivatives market, according to data from CoinGlass. The crypto futures market witnessed the liquidation of over $359 million worth of leverage positions in the last 24 hours, with $258.7 million being short liquidations.Over $18.64 million short SOL positions have been liquidated against $3 million long liquidations over the same period.Total crypto liquidations. Source: CoinGlassBearish traders’ short positions are automatically closed when the price exceeds their liquidation price, which can fuel the rally further. Furthermore, the SOL price gains accompany a recovery in its funding rates. SOL’s 8-hour funding rates have flipped positive from -0.0050% on March 19 to 0.0049% on March 20, as shown in the chart below.SOL funding rates performance. Source: CoinGlassA rise in funding rates indicates increased demand for long positions and increased interest among SOL traders.Related: ‘I am ashamed’ — Solana CEO breaks silence over controversial ad backlashCan SOL price stage a recovery to $220?SOL still trades well below its range high of $220 reached on Feb. 5. However, the bulls have established support around $110 and $125 at the upper boundary of a descending channel.The daily relative strength index (RSI) has recorded higher highs since March 10 with no divergence, indicating that the upward momentum remains strong.XRP/USD daily chart. Source: Cointelegraph/TradingViewThe next immediate barrier sits at $140, which, if broken, SOL price would rise higher to confront resistance from the $165 to $190 supply zone—this is around where all the major moving averages sit.Bulls will be required to flip this area into support to increase the chances of rising toward $220, where the price could pause for a while.According to analyst Cryptobits, SOL’s recent low at $112 marked the local bottom for the altcoin. He added that Solana’s fundamentals remain strong, with increasing “investment interests from institutions” supporting its upside.“With all the above remaining intact, I see $SOL returning above $200 and eventually breaking its ATH high at $296.”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.

FOMO: 90%