Crypto Market

BTC and ETH Market Insight

The market is closely monitoring any potential tariff announcements from President Trump as we approach the April 2nd deadline. As a matter of fact, the market sentiment has started to turn sour on the PCE announcement.  Stronger-than-expected core PCE data also raised concerns about a potential delay in rate cuts, adding to market uncertainty. The risk-off price action continues to dominate in the market alongside higher treasury yield and gold price since then. Spot Bitcoin ETFs saw a drop of 73.6% in net inflows from the week prior, ending the week with a net outflow of $93.16 million on Friday.

Options Market

The realised volatility continued to drift lower during the beginning of the week until the sharp selloff kicked in on Friday. The one-week implied volatility rose more than 10 points for both BTC and ETH. ETH underwent a sharper selloff than BTC once again hence a higher increase on IV. ETHBTC ratio got pushed back down to 0.022 mark. Front-end skew shifted higher to favour puts as the demand for downside protection rose, It’s noteworthy that the mid-dated skew also moved a bit towards puts. This may indicate a potential sentiment shift for the market outlook in the mid term.

Altcoins and Blockchain News

• Sonic Labs has canceled its plan to launch a USD-pegged algorithmic stablecoin and has instead chosen to develop an alternative stablecoin product denominated in UAE Dirhams.

• The Binance Wallet team has launched a new feature called "Trade on DEX with CEX funds", allowing Binance users to use their Binance exchange (CEX) funds to trade millions of tokens on the Binance Wallet chain.

• On March 28, according to Farside Investors, the US Ethereum spot ETFs recorded a net inflow of $4.7 million, ending a 17-day streak of no net inflows.

• xAI, a company under Elon Musk, has acquired X through an all-stock transaction. The merged entity is unified under the name XAI HOLDINGS. The deal values xAI at $80 billion and X at $33 billion.

• Hyperliquid announced that its blockchain has been upgraded, introducing a fully on-chain validator voting feature for asset delistings.

• Virtuals Protocol announced an update to its fee distribution model: 70% of trading fees will go directly to the proxy creator’s wallet, while the remaining 30% will go to the Agent Commercial Protocol (ACP).

• According to the Korea Herald, in 2024, Upbit operator Dunamu saw an 85% year-on-year increase in operating profit, reaching 1.19 trillion KRW ($811 million). Revenue surged 70.5% to 1.73 trillion KRW, and net profit increased 22% to 983.8 billion KRW.

• On March 29, according to on-chain data, the Monad testnet has reached a total of 73,433,692 addresses.

Macro

The major benchmarks fell sharply for the week: the DJIA lost 2.3%, the S&P 500 lost 5.1%, and the Nasdaq lost 10.3%. Chinese equities continued the decline for the week: the Shanghai Composite Index shed 0.4%, the CSI 300 -0.01% and the Hang Seng index lost 1.11%.