Aibit Institute Market Analysis| Sideways trend, what’s the choice to make during the hearing
As of writing, BTC is quoted at 222438.9 USDT, decreased by 0.51% for 24 hours; ETH is now quoted at 1571.87 USDT, decreased by 0.35% for 24 hours.
BTC is still in the transverse state after the sharp decline in these two days. The market is waiting for the Federal Reserve Chairman’s testimony to Congress today and tomorrow, and the non-farm data released on Friday, which will greatly affect the short-term trend of the market. If the data is good, which may cool the economy and improve the inflation shock downward, the market confidence is likely to be repaired and pulled up. However, I remain my previous view that the rebound won’t end until BTC breaks 21500. Daily level support is near 21500, and the pressure level is near 23000.
Ethereum price is tending to stable after a sharp drop as BTC, compared to the BTC trend, ETH is a little stronger but very likely it will follow BTC. With the upcoming Shanghai upgrade in April, if the economic data can improve, ETH is likely to be bullish along with the hype of the Shanghai upgrade. The daily support level is near 1500, and the pressure level is near 1600.
Macro policy
During the White House press briefing Monday, White House press secretary Karine Jean-Pierre said the Biden administration is monitoring Silvergate Bank’s (SI)) the situation, comparing it with those at other crypto companies and saying President Joe Biden has called on Congress to act in this area.
Jean-Pierre said she couldn’t speak to Silvergate specifically, but noted that many crypto companies have “experience[d] significant issues” in recent weeks and pointed to statements from federal bank regulators warning of the risk cryptocurrencies could pose to banks and other financial institutions.. Mr. Biden has repeatedly called on Congress to act to protect Americans from the risks posed by digital assets, and he will continue to do so in the future.
Michael Hsu, the acting head of the Comptroller of the Currency (OCC), made the comments in prepared remarks for the March 6 Institute of International Bankers conference in Washington, D.C, that regulators in different jurisdictions needed to do more to prevent companies from taking advantage of overlapping rules. Hsu said the collapse of FTX in November highlighted the need for a global regulatory framework. Until that is done, crypto firms with subsidiaries and operations in multiple jurisdictions will be able to arbitrage local regulations and potentially play shell games using inter-affiliate transactions to obfuscate and mask their true risk profiles.”
Market Hype
According to lavande, a new version V2 of the upgrade proposal for Ethereum’s LayerOptimism Bedrock will be released during the 11th round of review, which runs from March 2nd to March 22nd. The voting period runs from March 23 to April 5. Bedrock is a new generation of decentralized Rollup infrastructure developed by OP Labs to provide modularity, simplicity, and Ethereum equivalence to the Layer 2 network.
NFT market
On March 7, Galaxy Digital estimates that the market for Bitcoin NFTs based on inscriptions and ordinals will be worth $4.5 billion by 2025. Galaxy researchers investigated the potential expansion of Bitcoin NFTs and generated conservative estimates based on the existing size of the Ethereum NFT market. The report also mentions that historical transaction volume data from Ethereum and Solana NFT suggest that the cumulative transaction volume of Bitcoin NFT will exceed $1 billion in the next two years. Bitcoin’s prospects are much broader, and even looking at Bitcoin NFT alone has the potential to greatly expand Bitcoin’s cultural reach. There are also new technologies being explored, including new types of distributed software or bitcoin extensions.
According to Galaxy’s baseline estimate, if Bitcoin NFTs can grow to
mainstream NFT cultures such as PFPs (Profile Pictures), memes, and utility projects, the market valuation should reach $4.5 billion.
The new narrative of bitcoin will drive the use of Bitcoin. The growth of inscriptions, whether as NFT markets or something else, will increase the likelihood of additional adoption of Bitcoin. From a long prospect view, it will continue to have a market outbreak in the bullish market, when the capital is sufficient or not.
Industry Financing
Ethereum Layer 2 network Scroll raised $50 million in new funding, participated by Polychain Capital, Sequoia China, Bain Capital Crypto, Moore Capital Management, Variant Fund, Newman Capital, IOSG Contributing were Ventures and Qiming Venture Partners. This round brings Scroll’s total funding to $83 million.
Scroll declined to comment on the valuation and structure of the fundraising, but a source said the round valued Scroll at US $1.8 billion. Scroll had previously raised $33m in the previous two funding rounds and had not disclosed its valuation at the time.
I’m Aibit Guest Analyst Eon. For more real-time analysis of hot market projects, please follow us! This article is for reference only and should not be used as any investment advice. please be cautious about any investment.
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