Crypto market update✍️

Good evening to all my friends. I hope you all are doing well. I am having a fantastic day. Let's talk about crypto market. In this blog, I am going to discuss about Bitcoin and the financial markets. After the recent FOMC meeting, markets saw a sell-off, but it wasn’t as strong as before. The Fed is slowing down its balance sheet reduction from $25-$30 billion per month to just $5 billion, signaling a gradual easing of liquidity. The market anticipated the Fed might pause tightening by May, but no clear indication was given yet. I also want to talk about stablecoins, particularly USDT and USDC, which dominate the market with a combined cap of over $202 billion.

In March 2024, Bitcoin hit an all-time high, and the supply of stablecoins grew by $21 billion, indicating strong market demand. If this new supply is invested in Bitcoin, it could increase the market cap by $480 billion, possibly driving Bitcoin’s price up by 28%. Finally, I explain that when stablecoin demand is low, the market might be peaking, but if stablecoins are being minted, it suggests ongoing crypto demand. A slowdown in stablecoin supply could signal a downturn. In conclusion, markets often react before the news, so if good news is expected, the market will likely move first. That's for today. Thanks & have a good day!!