BTC to retest $70k and risk extended correction

March 13, 2024

I. Mainstream exchange news

• Coinbase plans to sell $1 billion in notes to institutional investors.
• Binance Launchpool has unveiled its 49th project, ether.fi, enabling users to mine ETHFI using BNB and FDUSD.
• Binance P2P will charge fixed taker fees for USDT trading pairs of some fiat currencies.
• OKX Jumpstart will launch a new project, Polyhedra Network (ZK).
• Binance will support Optimism (OP) and Arbitrum (ARB) network upgrades and hard forks.
• Binance will launch METIS/USDT and WLD/USDC perpetual contracts with up to 50x leverages.

II. Mainstream projects and trending events

• Solana's NFT market Tensor plans to issue a governance token TNSR.
• On March 12th, Grayscale reduced its BTC holdings by 4,421 BTC, while BlackRock increased its holdings by 7,770 BTC.
• Entangle will distribute 10 million NGL airdrops to testnet users, validators, and webverse stakers.
• Curve’s lending platform Curve Lend is now live.
• Grayscale submitted a mini version of the Bitcoin trust application to the SEC, and the stock code is "BTC".
• The February unadjusted US CPI annual rate is 3.2%, slightly higher than expected.
• Binance Labs opens the application for the seventh season of the incubation program, which will close on April 16th.

III. Funding news

• Blockchain video game MetalCore developer Studio 369 completes $5 million in funding.
• DeFi protocol Elixir completed an $8 million Series B funding round, led by Mysten Labs.

IV. Regulatory news

• UK NFT providers may need to register to comply with anti-money laundering rules.
• The US CFTC plans to launch new regulatory proposals this summer to manage potential risks, conflicts of interest, and governance issues.
• Hong Kong Monetary Authority launches stablecoin issuer sandbox.
• The Thai SEC permits private funds for qualified investors to invest in American Spot ETFs.

IV. Popular projects 

Market overview

BTC reached a new all-time high of $73,000 before dropping to $68,620 on March 13th, resulting in a single-day volatility of 6%. However, with the continued injection of BTC spot ETFs, BTC has rebounded back above the $72,000 mark.

Key areas to monitor include (1) maintaining $73,000 for upward momentum, with resistance at $75,000; (2) protecting the $70,000 level, which was breached on March 12th. If this level is tested again, a shorter-term correction trend might be observed; and (3) watching for a breach of the $67,000 support, which could lead to an extended correction phase.

Monad plans to raise over $200 million

Monad is a high-performance Ethereum-compatible L1 that completed a $19 million seed round in February 2023. On March 12th, there were reports that Paradigm is in talks to raise over $200 million for the L1 blockchain project Monad Labs, bringing the company's valuation to $3 billion. Paradigm has already indicated it would invest $150 million. The project is still in its early stages, without a mainnet launch, which may be a key focus in the future.

AMPL's market capitalization surpasses $170 million

Considered a pioneer in algorithmic stablecoins, AMPL often exhibits a stellar performance during bull markets. When the market ripples with bearish trends and the demand for AMPL reduces, the entire ecosystem enters a persistent deflationary spiral causing the token price to fall. Conversely, in a bull market, the price of AMPL consistently soars, and the daily distribution of extra AMPL due to inflation comes as a decent reward. At present, the market capitalization of AMPL surpasses $170 million, still shy of $200 million, and is out of the FOMO zone. Historically, AMPL's market capitalization would hit between $400-600 million during the highest FOMO stage of the bull markets.

GROK has soared 220% in the last three days

 On March 11th, Elon Musk stated on social media that his AI startup, xAI, will open source the code for its chatbot, Grok, this week. This means that the public will be able to use the code behind the company's large language model for free. Stimulated by this news, the memecoin GROK has risen quickly and currently has a market capitalization of $139 million with a 24-hour on-chain transaction volume of $9.54 million.

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