Market Overview Feb24 – Mar 3: Bitcoin Hits $94K After U.S. Crypto Fund Announcement
Key Points:
- Bitcoin surged to $94,220 after Trump’s Tactical Reserve Fund announcement.
- Altcoins led gains: Cardano up 60.3%, XRP 34.7%, Solana 25.5%.
- Bitcoin’s market share dipped to 49.6% as altcoins gained traction.
The cryptocurrency market surged following Trump’s announcement of the U.S. Tactical Reserve Fund, which includes major cryptocurrencies like Bitcoin, Ethereum, and Cardano. Bitcoin reached $94,220, while altcoins showed stronger gains, with Cardano up 60.3% and XRP rising 34.7%.
A major institution acquired 20,356 BTC at $97,514 per coin. The PCE inflation index decreased to 2.5%, suggesting favorable macroeconomic conditions.
Last week’s Highlights (Feb24 – Mar 3)
The cryptocurrency market continues to see significant institutional moves, regulatory shifts, and technological advancements that are shaping the industry’s future. Here are some of the latest updates:
Strategy Acquires 20,356 BTC, Holdings Now Total $33.1 Billion
Strategy has acquired an additional 20,356 BTC for approximately $1.99 billion at an average price of $97,514 per BTC. The thereof figure brings total holdings to $33.1 billion, with an average purchase price of $66,357 per BTC.
Eight-Month SEC Review Begins for Cardano ETF
The SEC has officially received Grayscale’s application for a Spot Cardano ETF, marking the beginning of the regulatory review process. The commission now has up to eight months to issue a decision.
Trump Forms U.S. Strategic Crypto Reserve Fund
Former U.S. President Donald Trump has announced the formation of the U.S. Strategic Crypto Reserve Fund. The fund will include major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA), signaling a policy shift towards digital assets.
Superchain Dominates 60% of Ethereum’s Layer 2 Transactions
Optimism’s Superchain, a network of Layer 2 solutions built on the OP Stack, now processes 60% of Ethereum’s Layer 2 transactions. The ecosystem is projected to expand further, potentially reaching 80% market share by the end of 2025.
Major players such as Coinbase, Kraken, Sony, and Uniswap have joined the Superchain, which currently holds over $4 billion in total locked value (TVL) and processes 11.5 million daily transactions.
Grayscale Proposes Staking Rewards in Spot Ethereum ETF
The SEC is also evaluating Grayscale’s proposal to introduce staking into its Spot Ethereum ETF. If approved, this would allow ETF investors to earn staking rewards while holding their shares, integrating yield-generating mechanisms into a regulated investment product.
SEC Ends Uniswap Investigation
Regulatory uncertainty for Uniswap has been reduced as the SEC has officially closed its investigation into the decentralized exchange. However, the specific details of the conclusion remain undisclosed.
Tron Introduces Gas-Free USDT Transactions
In response to rising transaction costs, Tron has introduced a new feature allowing users to pay network fees directly in USDT instead of TRX. The update aims to make transactions more efficient after TRC-20 USDT fees spiked to as high as $9 per transaction.
Bitwise Registers Aptos ETF
Bitwise has officially registered an Aptos ETF in Delaware under statutory trust law. While this does not confirm an imminent launch, it signals potential plans to introduce an exchange-traded fund focused on Aptos (APT).
SEC and Consensys Near Lawsuit Settlement
The SEC and blockchain firm Consensys have reached a preliminary agreement to settle their ongoing lawsuit. However, the dismissal still requires formal approval from the commission, with an official announcement expected soon.
Macroeconomic News
Recent macroeconomic data indicate a notable easing of inflation pressures in the United States. According to the latest report from the Bureau of Economic Analysis, the Personal Consumption Expenditures (PCE) Index has decreased to 2.5% in September 2023, down from 2.6% in August.
Additionally, Core PCE inflation, which excludes the more volatile categories of food and energy, has fallen to 2.6% from 2.9% in the prior month. These declines in both the overall and core PCE inflation metrics are indicative of a gradual reduction in price pressures within the U.S. economy.
- PCE Inflation Index: 2.5% | Expected: 2.5% | Previous: 2.6%
- Core PCE Inflation: 2.6% | Expected: 2.6% | Previous: 2.9%
Economic Indicators and Market Sentiment
Following President Trump’s announcement about establishing a Tactical Crypto Reserve, the cryptocurrency market has seen a significant uptick in sentiment.
Data from various market sources indicates a reallocation of capital among digital assets. According to the latest reports, Bitcoin has risen 10%, bringing its price to $94,220.
Notably, altcoins have demonstrated even more remarkable performance during this period. XRP has increased by 34.7%, Cardano (ADA) has surged by 60.3%, Solana (SOL) is up by 25.5%, and Ethereum (ETH) has risen by 13.1%.
The shift is also reflected in Bitcoin’s dominance decline, which has decreased from 55.4% to 49.6%. This trend indicates growing investor interest in alternative cryptocurrencies, potentially marking the onset of a new cycle for altcoins.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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