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Bitcoin price drops 3% on hot US PCE data as analyst says $84K must hold

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Bitcoin (BTC) sought a local bottom on March 28 while US inflation data came in higher than expected.

BTC/USD 1-hour chart. Source: Cointelegraph/TradingView

Bitcoin wobbles as PCE comes in hot

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD heading to $85,500 at the Wall Street open before reversing.

Down over 3% on the day, the pair saw lows under $84,500 on Bitstamp, marking its lowest levels since March 23.

The February print of the US Personal Consumption Expenditures (PCE) Index subsequently showed inflation quickening — in contrast to the result from a month prior.

While the month-on-month and year-on-year PCE tally conformed to market forecasts at 0.3% and 2.5%, respectively, their core PCE equivalents were both 0.1% higher than anticipated.

“Core inflation is back on the rise,” trading resource The Kobeissi Letter concluded in part of a response on X, noting that the January numbers had also been revised higher.

Kobeissi argued that the current macroeconomic trajectory forms “the perfect recipe for stagflation in 2025.” 

“March inflation data will be even more telling as the trade war rages on,” it wrote.

US PCE % change (screenshot). Source: Bureau of Economic Analysis

BTC price analysis sees “typical market cooldown”

While BTC price action appeared to shake off the inflation warning, market participants were ready for surprises.

Related: ‘Bitcoin Macro Index’ bear signal puts $110K BTC price return in doubt

“PCE data coming up so it’s going to be a volatile day in the markets I reckon,” popular trader Daan Crypto Trades thus wrote in part of his own X reaction.

Others maintained doubts over broader crypto market strength, agreeing that Bitcoin was not yet out of the woods despite holding above $80,000 for several weeks.

“Trend remains to be upwards for $BTC, but it starts to look slightly less good,” trader, analyst and entrepreneur Michaël van de Poppe told X followers on the day. 

“It’s shaking. Drop sub $84K and I think we’ll see a test at $78-80K and perhaps lower before we’ll bounce back up.”

BTC/USDT 12-hour chart with relative strength index (RSI) data. Source: Michaël van de Poppe/X

Fellow trader TheKingfisher likewise saw little chance of a full bullish comeback on short timeframes.

“BTC While the short term price action may suggest a localized squeeze, the broader outlook doesn’t yet support the narrative of a sustained bull run,” he summarized

“With volatility continuing to decline, current conditions appear more in line with a typical market cooldown. We could be approaching a seasonal reset, potentially front-running the familiar ‘sell in May and go away’ dynamic.”

BTC/USDT 4-hour chart with volume data. Source: TheKingfisher/X

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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Ethereum co-founder Vitalik Buterin: ‘Privacy is freedom’

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Ethereum co-founder Vitalik Buterin said privacy should be a top priority for developers, warning that assumptions about transparency and good intentions in global politics are overly optimistic.

In an April 14 blog post, Buterin argued that privacy is essential to maintain individual freedom and protect against the growing power of governments and corporations. He criticized the idea that increased transparency is inherently beneficial, saying it relies on assumptions about human nature that are no longer valid.

“These assumptions include believing that global political leadership is generally well-intentioned and sane, and that social culture continues to progress in a positive direction,” Buterin wrote. “Both are proving to be increasingly untrue.”

Buterin claimed there was “no single major country for which the first assumption is broadly agreed to be true.” Furthermore, he wrote that cultural tolerance is “rapidly regressing,” which is reportedly demonstrable by an X post search for “bullying is good.”

Buterin’s personal privacy issues

Buterin said that he found his lack of privacy unsettling at times. He added:

“Every single action I take outside has some nonzero chance of unexpectedly becoming a public media story.”

Covertly taken photos of Vitalik Buterin. Source: Vitalik.eth

While this may appear as a suggestion that privacy is an advantage only for those who venture outside the social norms, he highlighted that “you never know when you will become one of them.”

Buterin only expects the need for privacy to increase as technology develops further, with brain-computer interfaces potentially allowing automated systems to peer directly into our brains. Another issue is automated price gouging, with companies charging individuals as much as they expect them to be able to pay.

Related: Messaging apps are spying on you — Here’s how to stay safe in 2025

There is no privacy with government backdoors

Buterin also argued strongly against the idea of adding government backdoors to systems designed to protect privacy. He said such positions are common but inherently unstable.

He highlighted how, in the case of Know Your Customer data, “it’s not just the government, it’s also all kinds of corporate entities, of varying levels of quality” that can access private data. Instead, the information is handled and held by payment processors, banks, and other intermediaries.

Similarly, telecommunication companies can locate their users and have been found to illegally sell this data. Buterin also raised concerns that individuals with access will always be incentivized to abuse it, and data banks can always be hacked. Lastly, a trustworthy government can change and become untrustworthy in the future, inheriting all the sensitive data. He concluded:

“From the perspective of an individual, if data is taken from them, they have no way to tell if and how it will be abused in the future. By far the safest approach to handling large-scale data is to centrally collect as little of it as possible in the first place.“

Related: Privacy will unlock blockchain’s business potential

Authorities have more data than ever

Buterin raised the issue of governments being able to access anything with a warrant “because that‘s the way that things have always worked.” He noted that this point of view fails to consider that historically, the amount of data available for obtaining through a warrant was far lower.

He said the traditionally available data would still be available even “if the strongest proposed forms of internet privacy were universally adopted.” He wrote that “in the 19ᵗʰ century, the average conversation happened once, via voice, and was never recorded by anyone.”

Buterin’s proposed solutions

Buterin suggested solutions based mainly on zero-knowledge proofs (ZK-proofs) because they allow for “fine-grained control of who can see what information.” ZK-proofs are cryptographic protocols that allow one party to prove a statement is true without revealing any additional information.

One such system is a ZK-proof-based proof of personhood that proves you are unique without revealing who you are. These systems rely on documents like passports or biometric data paired with decentralized systems.

Another solution suggested is the recently launched privacy pools, which allow for regulatory-compliant Ether (ETH) anonymization. Buterin also cited on-device anti-fraud scanning, checking incoming messages and identifying potential misinformation and scams.

These systems are proof of provenance services for physical items using a combination of blockchain and ZK-proof technology. They track various properties of an item throughout its manufacturing cycle, ensuring the user of its authenticity.

The post follows Buterin’s recent privacy roadmap for Ethereum. In it, he highlighted the short-term changes to the base protocol and ecosystem needed to ensure better user privacy.

Magazine: Cypherpunk AI: Guide to uncensored, unbiased, anonymous AI in 2025

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Kraken rolls out ETF and stock access for US crypto traders

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Kraken is expanding beyond cryptocurrencies by offering US-listed stocks and exchange-traded funds (ETFs) in a move aimed at appealing to more traditional investors.

Kraken, the world’s 13th largest centralized cryptocurrency exchange by volume, announced the launch of 11,000 US-listed stocks and ETFs with commission-free trading in an effort to bring “equities and digital assets together” under one trading platform.

As of April 14, US-based users in New Jersey, Connecticut, Wyoming, Oklahoma, Idaho, Iowa, Rhode Island, Kentucky, Alabama and the District of Columbia can access these stocks and ETFs within their Kraken account, the company announced.

Kraken expands to stocks and ETFs. Source: Kraken

The exchange plans to continue expanding access to clients in other US states, marking the first part of a “phased national rollout.”

Related: Trump’s tariff escalation exposes ‘deeper fractures’ in global financial system

Both traditional and cryptocurrency investor sentiment took a significant hit after US President Donald Trump’s reciprocal import tariff announcement on April 2.

Kraken’s traditional stock offering comes over a week after the S&P 500 posted a $5-trillion loss in market capitalization over two days, marking its largest drop on record, surpassing a $3.3-trillion decline in March 2020 after the first wave of the COVID-19 pandemic.

Related: 70% chance of crypto bottoming before June amid trade fears: Nansen

Crypto is “becoming the backbone for trading”

Kraken’s expansion into traditional investment products signals the growing utility of cryptocurrencies and blockchain technology, according to Arjun Sethi, co-CEO of Kraken.

“Crypto isn’t just evolving, it’s becoming the backbone for trading across asset classes, such as equities, commodities and currencies. As demand for 24/7 global access grows, clients want a seamless, all-in-one trading experience.” 

Sethi added that expanding into traditional equities is a “natural step” toward the tokenization of real-world assets and the “borderless” future of trading built on blockchain rails.

Kraken also plans to expand its stock trading offering to other large international markets, including the United Kingdom, Europe and Australia.

Magazine: Illegal arcade disguised as … a fake Bitcoin mine? Soldier scams in China: Asia Express

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Bybit integrates Avalon through CeFi to DeFi bridge for Bitcoin yield

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Crypto exchange Bybit has partnered with lending protocol Avalon to offer Bitcoin yield to its users.

According to an April 14 Avalon Labs X announcement, the centralized decentralized finance (CeDeFi) protocol will now be a part of the exchange’s yield product, Bybit Earn. Avalon said it will allow the platform’s users to earn yield from Bitcoin (BTC) by arbitrating on its fixed-rate institutional borrowing layer.

Source: Avalon Labs

Avalon Labs announced in March that it raised a minimum of $2 billion worth of credit with possible scaling as the need arises. The product allows institutional borrowers to access USDt (USDT) liquidity without liquidating their Bitcoin holdings at a fixed 8% borrowing cost.

In February, Avalon Labs also announced it was considering issuing a Bitcoin-backed debt-focused public fund. Venus Li, co-founder of Avalon Labs, said at the time that the fund could be issued by leveraging a Regulation A US securities exception:

“We have spent years researching how Regulation A has been applied in traditional finance and whether it could be a viable path for crypto companies. While successful precedents in the crypto industry are limited, our analysis of previous SEC-approved cases suggests a viable path forward.”

Related: Bitcoin yield opportunities are booming — Here’s what to watch for

Centralized and decentralized finance unite

Avalon Labs’ product is a CeDeFi protocol, somewhere between decentralized finance (DeFi) and centralized finance (CeFi). This product category — with increased control over capital flows and access — often has advantages in meeting regulatory requirements for integrating with CeFi platforms.

The Bybit Earn integration leverages Avalon Labs’ 1:1 Bitcoin-pegged token FBTC, developed by DeFi protocol Mantle and Bitcoin-centric crypto developer Antalpha Prime. These tokens are then bridged onto Ethereum and other blockchains.

Related: Ethena Labs, Securitize launch blockchain for DeFi and tokenized assets

A multi-protocol system

Avalon Labs’ platform accepts FBTC as collateral and lends it at fixed rates. The borrowed USDt stablecoin is then deployed to high-yield strategies through the Ethena Labs synthetic dollar protocol. The assets employed in those strategies include Ethena USD (USDe) and Ethena Staked USD (sUSDE). The announcement claims:

“Returns are stable, secure, and passed back to Bybit Earn users—making Bitcoin a productive asset while maintaining simplicity and risk control.“

In other words, Avalon Labs serves as a bridge between Bybit and the yield-earning potential of Ethena Labs’ protocol. Avalon Labs describes this as a “CeFi to DeFi” bridge.

The news follows Ethena raising $100 million in late February to deploy a new blockchain and launch a token focused on traditional finance. In January, Ethena also announced plans to roll out iUSDe, a product identical to USDe but designed for regulated financial institutions.

Bybit did not respond to Cointelegraph’s inquiries by publication.

Magazine: The real risks to Ethena’s stablecoin model (are not the ones you think)

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