Crypto comeback: Bitcoin rebounds after market plunge

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State of crypto

• Crypto comeback: Bitcoin, XRP, and Solana rebound after market plunge
• Clearstream to launch crypto custody and settlement services for institutions
• Trump and US Senate push for strategic Bitcoin reserve
• SEC drags its feet on XRP ETF as Franklin Templeton jumps in
• Money 2040: Rethinking money in the digital and quantum era
• Japan moves to slash crypto taxes, big win for investors

Check prices on the BTC Markets exchange

Crypto comeback: Bitcoin, XRP, and Solana rebound after market plunge

The crypto market is showing signs of recovery after a sharp decline, with Bitcoin, XRP, and Solana all rebounding. Bitcoin has surged nearly 7% in the past 24 hours, trading above US$83,400 after briefly dropping below US$77,000 on Tuesday. The initial sell-off was driven by recession concerns and uncertainty surrounding President Trump's latest tariff policies, which caused Bitcoin and other digital assets to fall alongside US tech stocks. Ethereum and Solana reached their lowest prices in over a year, and total crypto liquidations exceeded US$700 million.

The recent rebound in crypto prices follows the release of softer-than-expected US inflation data, with the core Consumer Price Index (CPI) rising just 0.2% month-over-month and annual inflation cooling to 3.1%, its lowest level since 2021. The potential for the Federal Reserve to pause rate hikes or even cut rates later this year has some analysts suggesting that lower rates could boost risk-on assets like Bitcoin and Ethereum.

Despite Bitcoin's 24% decline from its all-time high of US$109,588 in January, the recovery in prices raises the question: could crypto be the canary in the coal mine? The market’s response to inflation data may hint at broader economic trends, and if inflation continues to cool, the crypto market could see more bullish momentum. However, traders are still cautious, watching closely to determine whether the rebound has staying power or if it’s just a short-term blip amid ongoing economic uncertainty.

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Clearstream to launch crypto custody and settlement services for institutions

Clearstream, the post-trade unit of Deutsche Boerse, is set to offer cryptocurrency custody and settlement services to institutional clients, starting with Bitcoin and Ethereum next month. Partnering with Deutsche Boerse’s Crypto Finance, Clearstream aims to provide a seamless solution for banks and asset managers, with plans to expand into staking, lending, and tokenised assets.

With €20 trillion in assets under custody, Clearstream’s move highlights the increasing demand from financial institutions looking for regulated crypto exposure, particularly after the EU’s MiCA framework came into effect. As traditional firms like BlackRock and Franklin Templeton embrace digital assets, Clearstream’s entry is expected to accelerate institutional adoption.

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Trump and US Senate push for strategic Bitcoin reserve to bolster US financial dominance

President Donald Trump has signed an executive order to establish a Strategic Bitcoin Reserve and a Digital Asset Stockpile, with the goal of positioning the US as a dominant force in the cryptocurrency sector. The reserve, managed by the US Treasury, will initially be funded through Bitcoin seized in forfeiture actions, and agencies are directed to review their digital asset holdings.

This move is part of Trump’s broader vision to make the US the "crypto capital of the world," with a focus on maximising the value of these assets through centralised oversight and improved management practices, considering past mistakes, such as the alleged loss of US$17 billion through premature Bitcoin sales.

In parallel, Senator Cynthia Lummis has reintroduced a bill calling for the US government to purchase 1 million Bitcoins over the next five years, funding the acquisition through existing resources from the US Federal Reserve. The Bitcoin will be stored in a decentralised network, with Lummis emphasising the strategic importance of Bitcoin for the nation's economic future, particularly in tackling national debt and preserving US leadership on the global stage.

Both these moves reflect the growing momentum behind government-backed crypto reserves at both federal and state levels, with Texas advancing its own legislation to create a state-run Bitcoin reserve.

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Japan moves to slash crypto taxes, big win for investors

Japan is shaking up its crypto tax laws, with the ruling Liberal Democratic Party (LDP) pushing to cut capital gains tax on digital assets to 20%. If approved, this would put crypto on par with stocks and other investments, making Japan a more attractive market for crypto investors. The proposal also suggests deferring taxes on crypto-to-crypto swaps until they’re cashed out for fiat, removing a major headache for traders.

This marks a shift in Japan’s stance on digital assets, as the country moves away from its traditionally cautious approach. While lawmakers have floated bold ideas, like holding Bitcoin in Japan’s foreign reserves, regulators remain cautious. Still, these tax reforms could be a game-changer for Japan’s crypto market.

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SEC drags its feet on XRP ETF as Franklin Templeton jumps in

The SEC is once again taking its time with crypto ETFs, delaying its decision on Grayscale’s XRP ETF application. The agency says it needs more time to assess whether a spot XRP ETF will get the green light, potentially pushing the final verdict to mid-October.

Meanwhile, Franklin Templeton has thrown its hat in the ring, filing its own application for an XRP ETF. With major players like WisdomTree, Bitwise, and 21Shares also in the mix, the race to launch the first XRP ETF is heating up. This wave of applications follows the massive success of spot Bitcoin ETFs, which now manage close to US$100 billion in assets.

Ripple’s CEO has called an XRP ETF “inevitable,” citing strong investor demand. Meanwhile, XRP has been holding its ground in the market, recently trading at US$2.20, outpacing Bitcoin and Ethereum in post-election gains.

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Crypto Fear & Greed Index

Source: Fear & Greed Index

BTC Markets in the news

Capital Brief: Crypto keeps the faith

Donald Trump’s tariffs are harming the cryptocurrency sector more than his plans for a Strategic Bitcoin Reserve are helping. But the local industry remains optimistic.

“In my view Trump’s tariffs are a regressive step,” said BTC Markets’ CEO Caroline Bowler. “But what I do feel is long-term positive is this pro-crypto government and the ripple it’s having around the world, it’s forcing everybody to pull their socks up and raise their standards in terms of getting a framework in place.”

Read the full article here.

Money 2040: Rethinking money in the digital and quantum era

We’re excited to share that Caroline Bowler, CEO of BTC Markets, will be speaking at the upcoming Black Swan Summit on 25 March.

The session, Money 2040: Rethinking Money in the Digital and Quantum Era, will explore how Web3 networks, tokenised assets, and quantum advancements will transform the very nature of money. Caroline will discuss thought-provoking topics, including the rise of personalised and programmable money, the security implications of quantum technologies, and the evolving role of Bitcoin as a store of value.

Moderated by Mark Staples, CTO of Digital Finance CRC, the panel will feature industry experts such as Antonio Alvarez Lorenzo from Crypto.com, Effie Dimitropoulos from AUDC Pty Ltd, and Alan Scott from the Railgun Privacy Report.

Learn more: Money 2040: Rethinking Money in the Digital and Quantum Era

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The week ahead: economic events

Thursday March 13th 

• Canada Interest Rate
• United States Producer Price Inflation MoM

Friday, March 14th 

• United Kingdom Monthly GDP MoM

Saturday, March 15th 

• United States Michigan Consumer Sentiment

Monday, March 17th 

• China Industrial Production & Retail Sales YoY
• US Retail Sales

Tuesday, March 18th 

• Germany ZEW Economic Sentiment Index
• Canada Inflation Rate
• United States Building Permits & Housing Starts

Wednesday, March 19th 

• Japan Balance of Trade & Interest Rate

Source: Trading economics

Market reflections

Australia: Trade surplus and consumer confidence climb

Australia’s trade surplus continues to impress, with the January 2025 surplus widening to AUD 5.62 billion, surpassing expectations and a slight improvement on the previous month. Exports rose by 1.3%, with non-monetary gold leading the charge. Imports declined marginally by 0.3%, showing a robust trade outlook. Meanwhile, consumer confidence has surged by 4% in March, hitting a three-year high of 95.9. This is largely attributed to the recent interest rate cut by the RBA and a relief in cost-of-living pressures, although concerns over inflation and geopolitical risks remain in the backdrop.

Sources: ABS, Westpac, NAB

United States: Inflation eases, but job growth slows, keeping the Fed cautious

Inflation in the US slowed in February, providing some relief for households and businesses. Core prices, which exclude food and energy, rose by just 0.2%, the slowest monthly increase since 2021. Annual inflation dipped to 2.8%, down from 3% in January, thanks to cooling housing and transportation costs. This trend could lead to lower interest rates in the coming months, making borrowing more affordable for consumers.

However, the job market is showing signs of strain. While the US economy added 151,000 jobs in February, this fell short of expectations. At the same time, the unemployment rate edged up to 4.1%, reflecting some weakness in hiring. Key sectors, such as retail, saw little change, while wage growth remained steady. With inflation cooling but job growth slowing, the Federal Reserve is likely to take a cautious approach to future interest rate decisions.

Sources: ISM, BLS

European Union: ECB cuts interest rates again, signalling easier borrowing ahead

The European Central Bank (ECB) has lowered interest rates again, marking its fifth consecutive cut. With inflation easing, the ECB is making borrowing cheaper for households and businesses. However, growth forecasts have been revised down, with the economy expected to grow slowly over the next few years.

Source: ECB

China: Trade surplus grows, but import slump hints at weaker demand

China’s trade surplus surged to US$170.52 billion in early 2025, driven by a 2.3% year-on-year rise in exports. However, a significant drop in imports (8.4%) suggests weakening domestic demand, marking the steepest fall since mid-2023. The country also saw a surprising 0.7% decline in consumer prices, pointing to deflationary pressures driven by slowing seasonal demand. As such, China’s consumer sentiment remains subdued, with a marked drop in food and transport costs.

Source: GACC

Germany: Exports and imports show mixed signals

Germany’s trade surplus has narrowed, with January 2025 figures falling to EUR 16 billion, down from EUR 20.7 billion in December. Exports to key trading partners like the US and China showed weakness, falling by 2.5% month-on-month. On the other hand, imports rose 1.2%, largely driven by higher purchases from the US and Russia. This shift reflects a challenging global environment for Europe’s largest economy.

Source: Destatis

Canada: Economy sees mixed signals as trade surplus jumps, but job growth slows

The Bank of Canada cut interest rates by 25bps to 2.75% in March, supporting growth amid rising trade tensions with the US. Inflation is expected to pick up, but core pressures may ease. Meanwhile, Canada’s trade surplus surged to CAD 4.0 billion in January, while job growth lagged, with unemployment steady at 6.6%, indicating a cooling labour market.

Source: Statistics Canada

Scam awareness

Types of scams: Product and service scams

Scammers impersonate buyers, sellers, and trusted businesses to steal your money. They create fake websites, use stolen logos, and post deceptive ads. Always double-check payment details and verify businesses before making a purchase or paying invoices. If a deal looks too good to be true, it probably is.

Warning signs it might be a scam

• Fake news stories or ads that claim a celebrity recommends this scheme to make big money
• An online contact (a friend or romantic interest) that you've never met in person starts talking to you about investing
• Emails, websites or ads with testimonials and over-the-top promises of big returns
• High pressure tactics designed to rush you to act so you don't 'miss out'
• The 'adviser' who is helping you claims that they don't need an Australian financial services (AFS) license
• You are asked to promote the scheme to friends and family to earn commission.

Learn more at scamwatch.gov.au

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