Daily News | BTC Dived After Exceeding $69K and Breaking New High; The BRICS Countries Plan to Create A Digital Currency Payment System; Global Market Slightly Declines

Crypto Daily Digest: BTC quickly dived after reaching a new historical high; BRICS countries will create payment s based on digital currencies; The SEC claims that Binance is “unwilling to provide information” and requests court intervention

First, let’s look at Bitcoin ETFs’ trading activity. According to Farside Investor data, on March 5th, Grayscale’s GBTC funds continued to Flow out significantly, reaching $332.5 million; Meanwhile, Fidelity Bitcoin spot ETF (FBTC) inflow was $125.6 million, Bitwise Bitcoin spot ETF (BITB) inflow was $3.7 million, ARK 21Shares Bitcoin spot ETF (ARKB) inflow was $63.7 million, and WisdomTree Bitcoin spot ETF (BTCW) net inflow was $6.6 million.

According to Bloomberg analyst Eric Balchunas, as of the close of the US stock market on March 5th, the daily transaction volume of 10 Bitcoin spot ETFs reached a historic high, reaching $10 billion. BlackRock’s IBIT, Fidelity’s FBTC, Bitwise’s BITB, and ARK/21 Shares’ ARKB all set new records.

The most eye-catching thing recently is the price of Bitcoin. Bitcoin quickly plummeted after hitting a historic high for the first time in over two years. Data shows that BTC broke the historical record set last Wednesday by breaking through $69,210 on March 5, with a total market value of over $1.3 trillion for Bitcoin. Previously, Bitcoin hit several highs of $68,999.99 per coin on November 10, 2021. Twenty-eight months later, Bitcoin set a new record, and since 2024, it has risen by 62.64%.

However, after that, there was a significant drop in prices, with a decline of over $10,000 within 24 hours. According to CoinGlass data, 320,000 traders have been liquidated in the past 24 hours, mainly long positions, totaling $1.19 billion. At the time of writing, the BTC price is $62,921.9.

Ed Tolson, CEO and founder of Kbit, a crypto hedge fund, believes that “the market is expected to see a significant adjustment, with a potential adjustment range of 10% -20%. Any substantial decline will lead to a cascading liquidation of the crypto perpetual swap market, with retail investors flocking to leveraged long positions and very high funding rates.”

The Russian news agency TASS reported that the BRICS Group, consisting of Brazil, Russia, India, China, and South Africa, will be committed to creating payment s based on blockchain and digital technology. This effort is part of enhancing the role of BRICS countries in the international monetary this year. For a long time, the BRICS Group has been striving to reduce its reliance on US dollar settlement, also known as de-dollarization.

“We believe that creating an independent payment is an important goal for the future of the BRICS countries, based on the most advanced tools such as digital technology and blockchain. The most important thing is to ensure that it is convenient for the government, the general public, and businesses, cost-effective, and not politically influenced,” Kremlin aide Yuri Ushakov said in an interview with TASS. “The development of emergency reserve arrangements will continue, mainly using non-US dollar currencies.”

Last week, another TASS report stated that the Russian Ministry of Finance, the Russian Central Bank, and BRICS partners will create a BRICS Bridge multilateral payment platform to improve the global monetary . In February, Klaas Knot, the Chairman of the Financial Stability Board, which closely monitors the global financial , wrote to finance ministers of G20 countries, stating that crypto assets, tokenization, and artificial intelligence (AI) remain priorities.

In its joint status report submitted to the Washington D.C. District Court on March 5, the SEC stated that BAM Trading Services (operating under the name Binance.US) was “unable or unwilling” to respond to requests for customer asset custody information and requested court intervention to expedite the discovery process. On the other hand, in the report, Binance.US refutes the allegations, stating that it has complied with all “extremely broad” information requirements put forward by regulatory agencies and has requested the court to end the expedited evidence disclosure process.

The dispute between the SEC and Binance has previously attracted widespread attention, with the US Department of Justice settling with it for $4.3 billion in November; Correspondingly, as part of the settlement agreement, CZ acknowledges certain charges and underwent a criminal sentencing hearing on April 3, potentially facing up to 18 months in prison.

Market trends: BTC hit a new high and quickly fell, adjusting to a better rise

Today’s market situation is similar to yesterday’s expectations, but some important fluctuations have occurred. After hitting a historic high, BTC prices quickly plummeted, resulting in a daily decline of up to $10,000. Meanwhile, the US stock market has also shown a clear downward trend, falling to the lowest point in the past two weeks. This fluctuation is not an isolated phenomenon but rather an adjustment of market heat to better prepare for future increases.

BTC spot prices experienced a rapid decline after reaching $69,000, dropping as low as $59,000 early this morning, with a drop of up to $10,000, resulting in the liquidation of high-leverage contracts. This fluctuation has cooled down the market’s greed and also reminded investors of the existence of risks.

Market hotspots

Against the backdrop of BTC hitting a previous high and then plummeting, the market has turned to speculate on the upgrade of Cancun. The tokens in the Ethereum Layer2 sector, such as STRK, OP, MANTA, etc., have risen against the trend, while the Ethereum Domain Name Protocol ENS has also seen an increase. However, the performance of the Meme concept token is not optimistic, with leading Meme tokens on the Solana chain, such as MYRO and WIF, experiencing intraday fluctuations of around 50%. At the same time, the performance of AI concept tokens is relatively strong, and tokens such as AR and FET have not shown a significant decline. Of particular note, FET announced yesterday the launch of a new project, Fetch Compute, and promised to invest $100 million. Fetch Compute is a cloud computing platform, and the launch of this project may bring new growth opportunities to FET and enhance its position in the market.

Overall analysis shows that the market is still full of fluctuations and changes, and investors need to remain vigilant, closely monitor market dynamics, and adjust strategies in a timely manner to obtain better investment returns.

Macro: Asian stock markets weakened on Wednesday, technology stocks are bringing Wall Street lower; Gold is similar to Bitcoin, hitting a new historical high and then falling back

On the global market front, traders are hesitant to make significant bets before Federal Reserve Chairman Jerome Powell delivers congressional testimony to assess whether the Fed is ready to start cutting interest rates. According to the CME FedWatch tool, the market has a 68% chance of the Federal Reserve starting its easing cycle in June. They have included this year’s interest rate cut by 88 basis points. This makes Powell’s statement on Wednesday very important, but so far, most people are inclined that he will not change his previous attitude of “suspending interest rate cuts.”

The MSCI Asia Pacific Stock Index (MIAPJ0000PUS), the most widely used stock index outside Japan, fell 0.21%. The Nikkei Index of Japan (.N225), which hit a historic high this week, saw investors take profits, and its stock price fell 0.20%. The blue chip Shanghai and Shenzhen 300 Index (.CSI300) fell 0.42%, while the Hong Kong benchmark Hang Seng Index rose 0.73%.

Reuters reported that Tuesday’s data showed a slowdown in the expansion of the US service industry, with a more than expected decrease in new factory orders. Non-farm employment data will be released later this week, becoming the next focus. The yield of benchmark 10-year US treasury bond bonds remained stable in Asia, with the latest report of 4.162%. Due to weak data, it fell to a one-month low of 4.112% the previous trading day.

Meanwhile, the three major stock indexes on Wall Street have all fallen by more than 1%, while large growth companies such as Apple (AAPL.O) have performed weakly, and the chip industry has had the greatest impact on the tech-dominated Nasdaq Index (.IXIC). Due to Washington’s crackdown on advanced technology exports to Beijing, AMD Semiconductor Company has encountered obstacles in selling artificial intelligence chips specifically designed for the Chinese market, causing damage to the chip industry.

The Dow Jones Industrial Average (.DJI) fell 404.64 points, or 1.04%, to 38585.19 points. Of the 11 major industry indices in the S&P 500 index, 8 fell, technology stocks fell 1.2%, and the non-essential consumer goods index (.SPLRCD) fell 1.2%. Energy (.SPNY) rose 0.7%, with the largest increase, followed by a 0.3% increase in consumer essential goods (.SPLRCS).

Last week’s data showed that inflation in the eurozone decreased slightly in February. Still, the growth rate of basic prices remained high, which added to the reason for the European Central Bank to maintain interest rates at historic highs for some time before easing policies in mid-year. The market expects the European Central Bank to cut interest rates by 90 basis points this year.

On Wednesday, the Chinese stock market fell, possibly due to Beijing setting a widely anticipated 5% growth target for 2024 at the National People’s Congress meeting the day before but lacking significant stimulus measures. Many economists believe that expanding domestic demand is China’s most urgent priority, but in Li Qiang’s summary of priorities, the importance of this measure is relatively low.

The slogan proposed by the leadership is “Liberate New Productivity.” As of this week, China has notified provincial governments to promote Xi Jinping’s agenda, but specific implementation and boosting details are still needed to promote top-down innovation.

Meanwhile, spot gold hit a historic high of $2,141.59 on Tuesday and fell 0.1% to $2,125.36 per ounce.

US crude oil fell 0.1% to $78.07 per barrel, while Brent crude oil fell 0.13% to $81.93 per barrel.