The first quote|BTC, ETH continued to fall, SLERF unexpectedly burned a large number of tokens, but Solana meme remained hot, and technology stocks slightly boosted cautious global markets

Crypto Daily Digest: BTC and ETH continue to fall, SLERF accidentally burned $10 million in tokens, but Solana meme is still hot

Let's start with the trading activity of Bitcoin ETFs, according to Farside Investor data, Grayscale's GBTC outflows continued to be large on March 19, reaching the largest outflow of $642.5 million this month, while the Fidelity Bitcoin Spot ETF (FBTC) saw an inflow of $5.9 million, the Bitwise Bitcoin Spot ETF (BITB) saw an inflow of $17.6 million, and ARK 21Shares Bitcoin Spot The ETF (ARKB) saw an inflow of $2.7 million.

BTC ETH has shown a significant decline in the past two days, according to Coingecko data, the current BTC is $65,754.33, down 3.2% in 24h; ETH was at $3,405.20, down 16.2% at 24h. Profit-taking for short- and long-term holders is probably the most important factor, and for Bitcoin this is a typical pre-halving price drawdown, which has been observed to be the most prone to retracement 2-3 weeks before the halving occurs.

By observing the liquidation, you can see the sharp fluctuations in the Bitcoin futures market. The timing of the long liquidation coincided with heightened volatility. Within 24 hours on March 18, more than $40 million of long positions were liquidated. Bitcoin long liquidations surged to over $15 million on the day within 4 hours.

When Bitcoin bulls are liquidated without traders' buying pressure, the Bitcoin price is negatively impacted. Bitcoin trading volume is down more than $3.5 billion from this year's peak of $45 billion in daily trading volumes. This is also one of the reasons why the current price is falling.

The price of bitcoin is affected by profit-taking by holders, macroeconomic events such as regulatory actions, monetary policy of the Federal Reserve, etc., but in the long run, market participants still expect the price of bitcoin to recover, especially as more financial institutions embrace bitcoin.

Open interest in Bitcoin futures hit an all-time high in March, increasing from $22.2 billion on February 25 to $35.5 billion on March 14. In addition, the imbalance in the demand for leverage leads to distortions, although this is rarely sustainable.

Perpetual contracts contain interest rates that are recalculated every eight hours. A positive funding rate indicates an increasing demand for leverage from those holding long positions. Cointelegraph reported that on March 15, Bitcoin's funding rate dropped to 0.25% per week, which is considered neutral in a market where traders are usually bullish. This suggests that there is not much demand for short positions, suggesting that bears are hesitant to bet on the price of Bitcoin falling below $65,000.

Recently, the meme project on Solana has been very popular, and Slerf is a memecoin on Solana, which has received a lot of attention from the community. On March 17, the creators raised 535,000 SOL tokens to launch memecoin, but accidentally burned $10.4 million worth of Solana tokens while trying to clean up their wallets.

But instead of zeroing out Slerf, the project was hit by community sentiment and reached a $500 million market cap within hours after the developer admitted on the X platform that he was "really sorry for messing up everything", "destroyed LPs and airdropped reserved tokens due to misoperation, and minting rights have been revoked".

Even with the risk factor, the Solana memecoin presale is still of interest, for example, the presale of a project called "are you stupid" accumulated 420.69 SOL ($83,717) in a single transaction. As of March 16, users have 48 hours to send funds to the 'areyoustupid.sol' wallet address, where investors have a 99.99% chance of not getting anything back, but they still invest in it.

The recent memecoin frenzy makes it easy to compare it to the bubble of the Ethereum Initial Coin Offering (ICO) era in 2017, when several crypto projects raised millions of dollars, but many failed to deliver.

Market Analysis: BTC Enters the Adjustment Range Altcoins Fall

Market Trend

The overall trend of the broader market was weak, BTC entered a correction range, and altcoins generally fell sharply. The inflows of BTC ETFs have decreased significantly, while the Grayscale Bitcoin Trust (GBTC) has maintained huge outflows, even hitting a new high since the adoption of spot ETFs. On the macroeconomic front, U.S. stocks edged higher as the market focused on the Federal Reserve's monetary policy meeting this week. This meeting could have a significant impact on the movement of the financial markets as a whole, so investors are cautious about it.

MARKET HOTSPOT

1. Meme and artificial intelligence (AI) concept tokens, which were strong in the early stage, led the market, generally falling by more than 15%. The NEAR token fell sharply, in line with previous market expectations that AI-related projects could be hyped up with the help of the NVIDIA AI conference. After the conference, the NEAR token really showed a downward trend.

2. The SOL token pulled back after breaking through $200, resulting in a general decline in Solana on-chain tokens. Yesterday afternoon, after the sloth project SLERF was launched, it soared by more than 10 times in a short period of time, attracting widespread attention from the market, and Gate.io also launched SLERF for the first time yesterday. Another popular meme token, BOME, has risen too much in the early stage and has now entered a correction phase, which has fallen 66% from its all-time high.

Source: Gate.io

Analysis & Outlook

Overall, the market has entered a period of correction after the meme carnival, and investor sentiment is more cautious. Altcoins are likely to continue to take a hit as BTC adjusts, and BTC needs to be watched closely. In addition, the market is also paying attention to the Fed's monetary policy meeting, which may affect the trend of the cryptocurrency market to some extent. When choosing investment targets, investors need to choose carefully and pay close attention to market dynamics.

Macro: Wall Street closes higher, Asian markets are on the sidelines, and enthusiasm for tech stocks removes nervousness over the Federal Reserve

In global markets, major Wall Street indexes closed higher on Monday, with big growth stocks such as Alphabet and Tesla supporting the tech-heavy Nasdaq rally, while investors anxiously await this week's Federal Reserve meeting.

The Dow Jones Industrial Average (. DJI) rose 0.20% to 38,790.43, and the S&P 500 (. SPX) rose 0.63% to 5,149.42, and the Nasdaq Composite (. IXIC) ended a three-day losing streak, rising 0.82% to 16,103.45 points.

Nvidia (NVDA. O) The AI Developer Conference kicked off with a series of announcements from CEO Jensen Huang introducing Nvidia's latest chip, which is 30 times faster than its predecessor on certain tasks. New chips were in focus, with Nvidia shares up 0.7% but closing well below their intraday highs.

Google's parent company, Alphabet, is in talks to build Google's Gemini AI engine into the iPhone, giving the market a considerable boost. It supported a nearly 3% rally in the Communication Services segment, hitting its highest level since September 2021 and leading gains across the S&P 500's 11 major sectors.

At the same time, the Fed is widely expected to keep interest rates steady on Wednesday, and the market is focused on the latest economic data from policymakers, comments from Chairman Jerome Powell, and interest rate forecasts. Last week's stronger-than-expected inflation report led traders to reduce bets on a rate cut this year, with markets expecting a 71 basis point cut this year. At the beginning of the year, traders were expecting a price cut of 150 basis points.

The Bank of Japan (BOJ) was in focus in Asian markets, with Japanese stocks falling along with regional markets on Tuesday, while the yen held steady for a key BOJ meeting that could end eight years of negative interest rates and usher in the country's first policy tightening since 2007. All signs point to the central bank abandoning its ultra-loose monetary policy.

In commodities, U.S. crude fell 0.13% to $82.61 a barrel, and Brent fell 0.09% to $86.81.

Gold prices held steady on Tuesday as investors stayed on the sidelines ahead of the Federal Reserve's policy meeting this week, which could provide further clues as to the timing of a possible rate cut this year. Spot gold rose 0.1% to $2,161.79 an ounce. U.S. gold futures rose 0.1% to $2,165.30.

**Author: Sherry S. & Icing, Researcher, Gate.io This article represents the views of the author only and does not constitute any trading advice. The content of this article is original, the copyright is owned by Gate.io, if you need to reprint, please indicate the author and source, otherwise you will be held legally responsible. **