Market Watch
Digital asset markets extended their decline into Friday as investors reacted to stubborn inflation data and awaited potential policy shifts from Washington. The sell-off coincided with a high-profile visit from Elon Musk’s government efficiency team to SEC headquarters – a development that could signal coming changes for crypto regulation.
Market Bloodbath
- Bitcoin (BTC) tumbled 5.5% to break below $84,000
- Altcoins saw deeper cuts: MATIC, JASMY, BONK, and INJ all dropped 10%+
- Total crypto market cap fell $120B in 24 hours
Double Whammy: Inflation + Policy Risks
The February PCE report showed inflation running hotter than expected, reducing bets on near-term Fed rate cuts. Traders now price in just two 25-bps cuts for 2024, down from three projected earlier this month.
Compounding the pressure:
✔️ Liberation Day preparations suggest aggressive trade policy moves
✔️ Auto tariff announcements this week rattled markets
✔️ Speculation grows about reciprocal tariffs on allies
DOGE Team’s SEC Visit Raises Eyebrows
A delegation from Musk’s Department of Government Efficiency (DOGE) arrived at SEC headquarters Thursday. The timing is notable because:
◾ SEC currently reviewing dozens of crypto ETF applications
◾ Agency recently settled high-profile cases against Coinbase and Kraken
◾ 500+ SEC staff accepted early retirement packages
Analysts suggest this could preview:
→ Streamlined crypto approvals
→ Reduced enforcement actions
→ Potential leadership changes under Trump
Regulatory Winds Shifting
With Paul Atkins’ confirmation hearing concluding Thursday and Republicans controlling Congress:
✓ SEC enforcement has already slowed noticeably
✓ Spot ETH ETF approvals looking more likely
✓ Gary Gensler-era lawsuits being quietly dropped
Key Question: Will Musk’s efficiency push accelerate these trends?
Why Traders Should Watch
1. Next week’s jobs data could cement Fed policy trajectory
2. Liberation Day announcements may spark volatility
3. SEC staffing changes could impact crypto oversight
Bottom Line: Markets face stiff headwinds, but regulatory thaw could set stage for next bull run.