Digital Assets

Hubbis Partners with Independent Reserve to Bring You Weekly Crypto News and Market Trends - Navigating Cryptocurrency Adjustments and FOMC Decisions

Amidst decreased activity in cryptocurrencies, marked by reduced volatility and a slowdown in the meme coin frenzy, market participants are grappling with ongoing outflows from the Grayscale Bitcoin Trust.

This has necessitated adjustments in trading orders and strategies aimed at capturing evolving market dynamics. Overall, the week has witnessed a decline in cryptocurrency-specific activity as investors navigate these changes.

Last week, the focus was on the March meeting of the US Federal Open Market Committee (FOMC). The FOMC maintained the federal funds rate at 5.25-5.50% and forecasted three-quarter percentage point cuts by the end of 2024, along with a long-term rate increase from 2.5% to 2.6%. This strategic decision, viewed more positively than anticipated, reflects the FOMC's stance of looking through persistent above-target inflation to foresee a 'soft landing'. The market remains optimistic, expecting future interest rate cuts. We now turn our attention to closely monitoring US employment and inflation data, particularly the upcoming US PCE inflation data for February, which is expected to remain at 2.8%. Stay tuned for further updates.

On the OTC desk, activities remain steady as the Bitcoin halving approaches, with increased enquiries, especially from the Singapore office. This shift in activity reflects a maturing market amidst previous euphoria. Interest in long-tail assets persists, albeit selectively, while close monitoring of BTC supply dynamics provides insights into market sentiment and direction.

Read this week's full market update here.