Bitcoin remains volatile despite relief rally

Hola folks!

Welcome back to our weekly crypto newsletter, where we review the latest news and key updates from the crypto world.

Last week, the crypto market witnessed some turbulence, with Bitcoin dropping to $77,000 before rebounding to $84,000, driven primarily by lower-than-expected US inflation data and geopolitical developments. The altcoin sector saw a mixed performance, with TON surging 28.6% and Ethereum dropping 8.2%.

Investors will be closely monitoring whether Bitcoin’s recovery will hold in the coming days. Read on to learn more.

Bitcoin navigated a volatile landscape last week, breaking below a crucial support at $85,000 and plunging to $77,000 before staging a recovery to $84,000. The rebound was fueled by a 4% rally triggered by February’s Consumer Price Index data, which showed a modest 0.2% monthly increase and a 2.8% annual inflation rate, lower than anticipated. Ceasefire talks between Russia and Ukraine further steadied market sentiment, helping BTC’s price.

In the DeFi sector, PancakeSwap hit record-breaking monthly trading volumes, processing $81.9 billion in January and $78.7 billion in February, a giant leap from $1.6 billion and $1.4 billion in the same months last year, while surpassing $1 trillion in cumulative volume across its supported chains.

Meanwhile, Binance secured a landmark $2 billion investment from Abu Dhabi-based MGX, paid in stablecoins, marking its first institutional backing and the single largest investment in a crypto firm.

On the regulatory front, Coinbase suspended certain meme coins for New York users less than two months after listing them. Meanwhile, Solana validators rejected the SIMD-228 proposal, shelving plans to cut SOL emissions through dynamic staking.

Solana’s revenue plummeted 90% from January peaks, averaging $4 million weekly compared to $38.5 million earlier in the year, dipping to levels last seen in September. Activity on Hamster Kombat’s Layer 2 blockchain also declined, with transactions falling from 150 million on its February 25 launch to just 38,400 last week. Aave Labs unveiled Horizon, targeting institutional DeFi adoption with real-world asset products, and Pudgy Penguins teamed up with Helio and Shopify to enable $PENGU payments.

Stablecoins hit a new milestone, with their total market cap soaring past $228 billion, reflecting their growing dominance in the crypto economy.

BTC navigated a volatile landscape, breaking below a crucial support at $85,000 and plunging to $77,000 before staging a recovery to $84,000. 

In the altcoin market, ETH shed 8.2%, while XRP and BNB posted gains of 7.2% and 11.9%, respectively. The standout performers were TON and CAKE, surging 28.6% and 40.34%, respectively. 

Weekly price movement: 

• BTC $83,470 ⏫ 2.57% (7d)

• XRP $2.33 ⏫9.03% (7d)

• BNB $633 ⏫13.00% (7d)

• CAKE $2.17 ⏫ 40.34% (7d)

• TON $3.44 ⏫ 28.18% (7d)

(All data here as of 2.15 p.m., 17 March 2025) 

Before we conclude, here’s a quick look at some important news from around the crypto world.

• Gold exchange-traded funds (ETFs) have overtaken bitcoin ETFs in assets under management as investors shift toward the traditional safe-haven asset as BTC price tumbled more than 19% over the past three months, while the precious metal climbed 12.5%. Bitcoin ETFs, which saw significant inflows following their US launch in January last year, have experienced significant outflows, losing about $3.8 billion since Feb. 24 of this year, according to data. (Read more here)

• 21Shares is shutting down two actively managed crypto ETFs—ARKC and ARKY—amid a market downturn. Investors can trade shares until March 27, with liquidation expected around March 28. The ETFs, with 1% and 0.93% expense ratios, are being closed as US spot Bitcoin ETFs face $1.66 billion in outflows this month. (Read more here)

That’s it for now. Thanks for sticking around.

See you later, folks! 👋

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