- The cryptocurrency market cap saw a rise of 1.6% on Wednesday, adding more than $40 billion.
- PI Network, Hedera, and Binance Coin were the frontrunners in gains among the top 20 altcoins.
- TRX experienced a significant pullback, indicating a shift among traders from Tron-native stablecoins to altcoins as market confidence improves.
- Bitcoin’s recovery hangs below 5% as bulls find it challenging to surpass the $85,000 resistance level.
Bitcoin market updates:
- On Wednesday, Bitcoin’s price bounced back to $83,500, representing a 7% increase from Monday’s seven-month low of approximately $76,000.
- This recovery in BTC is attributed to unexpectedly mild inflation numbers from the latest US CPI report, which increased demand across global risk assets.
Bitcoin ETF Flows | Source: SosoValue
In Bitcoin ETFs, market participants withdrew another $371 million on Tuesday, pushing total outflows since early March beyond $1.5 billion.
It remains uncertain if the US CPI data will result in corporate investors ceasing the BTC ETF withdrawals. Should the sell-off continue, Bitcoin’s price recovery might lag behind that of altcoins in the coming days.
Altcoin market updates: Pi Network, Hedera, and BNB lead early gains as US CPI triggers recovery
The cooler-than-expected inflation data from the US reignited demand in cryptocurrency markets on Wednesday, contributing to a 1.6% rise in global market capitalization, or $40 billion more.
Crypto Total Market Capitalization | March 12
A detailed look at market trends indicates that altcoins have captured most of these inflows, while Bitcoin’s rebound has remained lackluster below the $85,000 level.
Crypto Market Performance – March 12
- Pi Network leads with a 22% increase
Pi Network (PI) stands out, experiencing a 22% surge at the time of reporting. This rise is mainly propelled by heightened community engagement ahead of the network’s pivotal migration event set for March 17. The growing media attention regarding PI’s potential listings on platforms like CoinMarketCap and CoinGecko has also fueled positive sentiment.
- Hedera (HBAR) surpasses crucial resistance on ETF optimism
Hedera (HBAR) made a 6% gain, momentarily breaking through the $0.20 resistance level. This rally was predominantly driven by the recent acknowledgment from the US Securities and Exchange Commission (SEC) regarding Nasdaq’s filing to list Grayscale’s Spot HBAR ETF, which significantly uplifted investor confidence within 24 hours of the announcement.
- BNB rises 2% as interest in exchange tokens grows
Binance Coin (BNB) increased by 2%, nearing the $560 mark. This price rise can be attributed to a growing demand for exchange tokens, particularly as traders engage in high-volume recovery trades facilitated by improving market conditions.
With altcoins spearheading the initial recovery, all attention is on forthcoming macroeconomic developments and shifts in investor sentiment that may dictate the next significant market movement.
Chart of the day: Top 3 memecoins outperform as market signals extended recovery
While the wider crypto market sits below a 5% recovery, notable trading metrics from Wednesday indicate that the ongoing rebound is driven by strong risk appetite and new capital inflows.
The stablecoin sector has grown by 0.6%, adding $117 million in the past 24 hours, based on data from CoinGecko. Inflows into stablecoins during market reversals usually indicate that fresh funds are entering the ecosystem, building a more solid foundation for the rally.
Top 3 Memecoins March 12
Memecoins have experienced significant inflows, with their total market capitalization rising by 7.4%, approaching the $50 billion mark.
A closer examination shows that all three leading memecoins have outperformed Bitcoin over the last 24 hours. Dogecoin (DOGE) increased by 1.4%, while Ethereum-based Pepe (PEPE) and Shiba Inu (SHIB) saw surges of 6.3% and 1.7%, respectively.
Historically, when memecoins outperform Bitcoin, it indicates a heightened appetite for risk among traders.
Given their lower liquidity and sensitivity to sentiment changes, the demand for these assets often serves as a crucial indicator of market conviction regarding risk-taking behavior.
The combination of $117 million in stablecoin inflows, $370 million into memecoins amid a 7.4% sector-wide increase, and the recent US CPI data indicating cooling inflation points to a recovery phase that may continue in the near future.
Crypto news updates:
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US legislators vote to repeal IRS crypto tax regulation; bill heads to the president’s desk
The US House of Representatives has approved a bill aimed at repealing an IRS regulation that requires decentralized finance (DeFi) brokers to report user transactions similarly to traditional securities brokers.
This regulation, enacted during the Biden administration, sought to enhance tax compliance but was met with opposition from lawmakers concerned about its potential impact on crypto innovation and the risk of businesses relocating overseas.
The bipartisan initiative, spearheaded by Rep. Mike Carey and Sen. Ted Cruz, received approval in the House after gaining earlier traction in the Senate. Advocates argue that eliminating the reporting requirement will foster a more favorable regulatory environment for the cryptocurrency industry. The bill is now headed for the president’s final approval.
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Cantor Fitzgerald collaborates with Anchorage Digital and Copper to expand Bitcoin financing
Cantor Fitzgerald has forged a partnership with Anchorage Digital and Copper to manage collateral and custody for its newly launched global Bitcoin financing enterprise.
This initiative aims to provide leverage for institutional investors holding Bitcoin while ensuring security through the expertise of its partners.
Anchorage Digital, the sole federally chartered cryptocurrency bank in the US, will manage custody and compliance, while Copper will facilitate digital asset services, including collateral management.
The collaboration kicks off with an initial $2 billion in financing, with plans for further expansion as institutional interest in Bitcoin-backed loans rises.
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Russia’s central bank contemplates allowing crypto purchases for qualified investors
The Bank of Russia is considering a new regulatory framework that would enable a specific group of qualified investors to buy cryptocurrencies under an experimental legal regime.
This initiative—developed under President Vladimir Putin’s direction—seeks to introduce controlled cryptocurrency investments while keeping limitations on its use as a payment method among residents.
The proposed framework is set to run for three years, allowing authorities to evaluate risks and devise appropriate regulations.
Eligible participants would consist of individual investors with securities and deposits exceeding 100 million rubles, an annual income surpassing 50 million rubles, along with corporate-qualified investors and financial institutions.
The central bank also intends to impose specific regulatory standards on financial organizations engaging in cryptocurrency investments, aiming to increase market transparency and reduce risks.