The Federal Reserve's dovish approach is evident, with Powell hinting at a slowdown in QT in April. Bitcoin ETF inflows remain stable, and Ethereum's staking ETF is a new expectation; the altcoin traffic battle has begun, with CZ promoting the BNB chain meme coins again, $mubarak $tut $broccoli competing for votes to get listed, and $xrp FDV surpassing $eth. The market is building a bottom and waiting for a breakout point!
First, let's discuss the Federal Reserve's FOMC meeting last night. The interest rate remains unchanged, and the dot plot indicates two rate cuts this year are within expectations. In the statements and the press conference, Powell was very dovish. The Fed removed the language about balancing employment and inflation targets, stating that uncertainty in the outlook has increased. Powell emphasized several times that tariff policies have affected inflation and acknowledged that the risk of economic recession has risen. He also revealed that the clear start date to slow QT is April 1st, which is clearly in response to the reciprocal tariff policy on April 2nd. This slowing of QT is equivalent to withdrawing $20 billion less from the market each month, which is undoubtedly a heavyweight positive. Although Powell's speech was mostly cautious and seemingly flawless, the market interpreted it as him trying to appear calm while revealing worries about recession. In summary, last night's meeting was definitely the main reason for the market's rebound.
From a funding perspective, Bitcoin ETFs continued to see an inflow of $11.8 million last night. Although the inflow has decreased compared to the previous days, the inflow record remains intact. The upcoming market is expected to be dominated by fluctuations; it may take a new market breakout point for large funds to re-enter. Ethereum ETFs saw continued capital outflows last night, marking 11 consecutive working days of outflows. From an institutional perspective, Ethereum still cannot be compared to Bitcoin. However, there are new expectations for Ethereum, as several institutions have submitted applications for a staking ETF to the SEC, including Fidelity. Based on the previous ETF submission sequence and BlackRock often placing BTC and ETH in the same tier, it is very likely that we will see news of BlackRock submitting an Ethereum staking ETF in the next few days. This could definitely solve Ethereum's institutional funding shortage. Additionally, Ethereum is reportedly going to upgrade the minimum number of staking nodes; it might change from 32 ETH to at least 2000 ETH. After the upgrade, Ethereum will become more concentrated, which is beneficial for better short-term price performance.
In the altcoin sector, the market has entered an era of competing for traffic. Toly is promoting the SOL chain, CZ is promoting the BNB chain, and Mr. Sun is promoting the TRX chain. Retail funds are moving back and forth among these three chains, and many idle traders have returned to their computers because meme enthusiasm has surged again, and the profit-making effect is starting to return. Especially, Binance has recently started making waves. From its establishment in 2017 to becoming the strongest CEX, Binance has fought countless life-and-death battles. Its achievements are undoubtedly due to its prowess in creating events, generating traffic, and attracting users. For instance, when CZ was pushing $tst, he was still an inexperienced boy; by the time of $mubarak, he had become a seasoned veteran. With just 1 BNB, he created a meme with a market cap of up to $200 million, and he hasn't even arranged for Binance's spot trading yet. Originally, everyone was discussing how the meme craze on the BNB chain was ended by the $bnbcard, which was controlled by the wolf. However, in the afternoon, CZ changed to a Middle Eastern avatar with a piece of cloth on his head, and he managed to make BNB rise again. Just a few hours later, as the heat was about to drop again, Binance initiated a token listing vote. In short, the heat cannot be underestimated. Now $mubarak, $tut, and several $broccoli are all competing fiercely. Especially with F2B's CZ Dog, fearing that $tut will hit the spot on 714, he has been encouraging the community to vote for $tut. It is likely that $mubarak and $tut will be the final selections. One is a meme and the other is AI, which fits the sectors. Of course, projects that do not make it into the top two in voting will definitely be arranged. In other altcoin news, $xrp has taken off again because the SEC dropped the lawsuit. Its FDV has now completely surpassed ETH. Of course, ETH's performance is also good, staying above $2000. Additionally, several popular sectors such as public chains, DeFi, memes, RWA, and AI all saw gains last night. The market currently feels like it has successfully built a bottom; everything is ready, just waiting for the right moment. The market only needs a breakout point to potentially restart.
🌡️ Market Sentiment: Positive 😊
💭 Analysis: The Federal Reserve's dovish policy, especially the decision to slow down QT, has injected liquidity into the market, which is a significant positive for the cryptocurrency market. The inflow of funds into Bitcoin ETFs remains stable, indicating market confidence in Bitcoin. Although Ethereum is facing capital outflows, the expectation of a staking ETF may bring new growth momentum. The activity in the altcoin market, particularly the meme coin craze on the BNB chain, shows that market speculation remains high. It is recommended that investors focus on Bitcoin and Ethereum while cautiously participating in altcoin investments, looking for opportunities to ignite the market. 🚀
🪙 Involved cryptocurrencies: $BTC, $ETH, $BNB, $XRP, $MUBARAK, $TUT, $BROCCOLI
