The BTC price rallied past the $95,000 mark for the first time in two months as China exempted some US goods from its 125% tariffs. A sustained bullish momentum for the flagship crypto could see it reclaim the psychological $100,000 level, which could pave the way to a new all-time high.
BTC Price Rallies $95,000 As China Exempts Some US Goods
The Bitcoin price broke above $95,000 following news that China has exempted some US imports from its 125% tariffs, which it imposed against the US earlier this month. According to the Reuters report, China allowed some US-made pharmaceuticals to enter the country without paying the 125% tax on US goods.
The report also mentioned that a list of 131 product categories is allegedly under consideration for exemptions. This list is believed to include chemicals, vaccines, and jet engines. However, it is worth mentioning that China has yet to comment publicly on this development.
Market participants still see this development as a sign that the US-China trade war could be easing. Earlier today, China denied reports that Donald Trump and Xi Jinping had a call regarding the tariffs, which raised concerns that tensions remain high between the two countries.
This recent move to exempt some US goods suggests that China remains open to a settlement, despite rebuttals of Trump’s statement regarding progress in trade talks. The trade war, which began earlier this month, has negatively impacted the BTC price and other altcoins. However, the sentiment looks to have changed with investors now viewing BTC as a safe haven rather than a risk asset.
Next Target For The Flagship Crypto Is $99,000
In an X post, crypto analyst Titan of Crypto stated that the next target for the Bitcoin price is $99,000 after it hit the $95,000 target. However, he added that BTC first needs to close and hold above the previous monthly high it just tapped.
Crypto analyst Kevin Capital stated that the BTC price on the monthly timeframe looks not only perfect but also like a perfect back test of previous all-time highs (ATHs). It is worth mentioning that renowned finance author Robert Kiyosaki recently predicted that Bitcoin could rally to a new ATH of between $180,000 and $200,000 this year.
Meanwhile, Cathie Wood’s Ark Invest also provided a bullish outlook for the Bitcoin price, predicting that it could reach as high as $1.5 million by 2030. The firm also presented a base case of $710,000 per BTC by that time.
Since its launch in late March, World Liberty Financial’s stablecoin USD1 has achieved an impressive market capitalization, reflecting strong investor interest. If the creators want to maximize USD1’s reach by accessing markets abroad, particularly in Europe, they must confront MiCA’s extensive compliance list.
In a BeInCrypto interview, experts from Foresight Ventures, Kaiko, and Brickken stressed the importance of stablecoin issuers having substantial European bank reserves, operational volume caps protecting the euro, and transparent USD1 information to ensure transparency and avoid conflicts of interest.
USD1’s Search for Dollar Dominance
World Liberty Financial (WLF), a decentralized finance (DeFi) project heavily associated with the Trump family, officially launched USD1 a month ago. Through this stablecoin, WLF aims to promote dollar dominance worldwide.
So far, this initiative has been working well for WLF. According to CoinGecko, USD1 has now surpassed a market capitalization of $128 million and reached a 24-hour trading volume of nearly $41.6 million. The project has already released 100% of its total supply of 127,971,165 tokens.
USD1’s market capitalization over the past 24 hours. Source: CoinGecko.
For WLF to seriously establish dollar dominance across the globe, it will have to move fast and efficiently. This urgency stems from the need to surpass its main competitors, USDT and USDC. These rivals currently hold a massive market share advantage.
Additionally, there’s a need to maintain a competitive advantage against established currencies like the euro.
USD1 needs to access foreign markets and stand out from established competitors to achieve this. Should Europe become a primary target, USD1 must prepare to tackle numerous challenges head-on.
The EU’s Stringent Compliance Demands
The European Union (EU) became the first jurisdiction in the world to establish a comprehensive regulatory framework for digital assets across its 27 member states. This regulation, known as Markets in Crypto-Assets (MiCA), has been in effect for nearly four months. Through this legislation, the EU has confirmed how seriously it takes compliance with a defined regulatory regime.
The regulation is detailed and clear, leaving no room for interpretation. If USD1 wants to operate in this crypto market of 31 million users, it must ensure it meets every demand.
US Senators Flag Risks of Presidential Involvement in USD1
In the letter, the group asked both agencies to clarify how they plan to uphold regulatory integrity following the issuance of USD1.
The Senators cautioned that letting a president personally benefit from a digital currency overseen by federal agencies he has sway over is a big risk to the financial system. They argued that an unprecedented situation like this one could hurt people’s trust in how regulations are made.
“The launch of a stablecoin directly tied to a sitting President who stands to benefit financially from the stablecoin’s success presents unprecedented risks to our financial system,” they argued.
The letter further detailed situations where Trump could directly or indirectly affect decisions regarding USD1.
As things stand, USD1 isn’t well-prepared to follow MiCA’s strict reporting and transparency rules.
How Do Concerns Over USD1 Impact MiCA Acquisition?
According to Ianeva-Aubert, if USD1 doesn’t clear up doubts over potential conflicts of interest, this would affect its ability to apply for an operating license in the European Union.
“MiCA requires strong governance, including independent directors and clear separation between owners and managers. Issuers must have clear rules to handle conflicts of interest. If USD1 has any conflicts, this could make it harder to comply,” she said.
Ianeva-Aubert also highlighted that WLF still hasn’t released enough public information on USD1 to assess the degree of its compliance effectively. In particular, the stablecoin issuer has not disclosed the measures it would take to safeguard against market manipulation.
As of now, USD1 would likely fail MiCA’s transparency tests. However, industry experts pointed out other parts of the framework that might be even larger obstacles for USD1 to operate across the European Union.
Impact of the EU’s Reserve Mandate on USD1
When asked about the biggest regulatory hurdles USD1 would face in securing a MiCA license, experts’ responses were unanimous. The stablecoin would need to store a large portion of its reserves in a European bank.
This mandate has proven difficult for established stablecoin issuers seeking operations across the region.
This regulation aims to ensure seamless accessibility for European crypto users and traders. For Forest Bai, Co-founder of Foresight Ventures, USD1 could capitalize on this opportunity during the early stages of its development. By doing so, it could avoid some of the obstacles its competitors had to endure.
Yet, even as USD1 scales and its demand grows, other mandatory requirements could restrict its scope of success.
MiCA’s Transaction Volume Caps to Preserve Euro Dominance
As part of the MiCA regulation, the European Union has taken specific measures to safeguard the euro’s dominance. If a digital currency not denominated in euros were to become extensively adopted for daily payments within Europe, it could present a potential risk to the European Union’s financial sovereignty and the stability of the euro.
To contain this possibility, MiCA places volume caps on transactions used as a means of exchange within the EU.
In other words, MiCA establishes predefined limits on the transactional volume of such currencies. The EU initiates regulatory measures when these limits are exceeded due to widespread payment usage.
Specifically, USD1 issuers must suspend any further digital currency issuance and provide a remediation plan to the relevant regulator, outlining steps to ensure their usage does not negatively impact the euro.
If USD1 wants to work in places where it can experience uninhibited growth, the European market might not be the best fit for this stablecoin. Other parts of MiCA also suggest this could be the case.
MiCA Limitations to Stablecoins as Investment Vehicles
EU regulators have been clear that stablecoins, or e-money tokens (EMTs), as the regulation refers to them, are payment instruments that should not be confused with investment vehicles. The MiCA framework has a few rules in place to prevent this.
Given the circumstances, experts like Bai think WLF might want to focus on countries with better market conditions for stablecoin issuers.
Should WLF Consider the EU Market for USD1 Operations?
While the European Union has an undeniable crypto market presence, other jurisdictions have an even larger footprint.
”The EU’s crypto market remains comparatively small, with just 31 million users versus Asia’s 263 million and North America’s 38 million users, according to a report from Euronews. This limited market size may not justify MiCA compliance costs for projects, like WLFI,” Bai told BeInCrypto, adding that “Projects ultimately determine their own growth strategy. Given that, currently, the EU represents a secondary market for USD1, the project’s strategic priorities may naturally shift toward regions with less stringent stablecoin regulations to drive its adoption.”
These circumstances alone may prompt USD1 to reconsider its options.
In fact, USD1 could start by gaining a competitive edge right at home.
USD1’s Political Backing at Home
With a crypto-friendly president in office –whose very crypto project officially announced the launch of USD1– the stablecoin has sufficient backing to make its mark.
Looking past the immediate future, Bai underlined that if the US doesn’t keep developing supportive crypto regulations, USD1’s growth in the country could be held back following a government shift.
Given this reality, USD1’s failure to comply with the EU’s regulations, should it ever even consider applying for a MiCA license in the first place, could have negative consequences for the project’s long-term viability.
Regardless of the markets WLF evaluates in its efforts to increase the reach of USD1, compliance with general stipulations concerning transparency, legal architecture, and real-time transaction oversight could be conducive to its eventual success.
As Justin Sun’s Tron network has undergone a significant upgrade, the TRX price has seen a major rally despite the recent hack. Reportedly, scammers hacked the official Twitter account of Tron and used it to steal user funds. While Sun traced the stolen funds to OKX, he contacted them to freeze the assets.
Notably, the TRX price, currently trading at $0.2482, surged by a marginal $1.6% over the last 24 hours and a notable 7.2% over the past month despite a 0.6% weekly dip. Though TRX reached a daily high of $0.2498 following the upgrade, the Twitter hack pulled the price down.
Tron Upgrade Boosts TRX Price Despite Recent Security Breach
Justin Sun’s Tron blockchain received a major upgrade, only to be hit by a security breach on the platform’s official X account shortly after. However, Tron’s TRX token stood largely unaffected by the hack, surging by nearly 2%.
Immediately after the upgrade, the token saw a significant surge of 7%, with its trading volume increasing by a whopping 43%. According to TronScan’s on-chain data, transaction volume on the TRON network surged 15% to over 5.8 million transactions by 1:00 PM UTC
Despite the hack, the TRX token is now trading around $0.24, sparking optimism within the Tron ecosystem.
Twitter Hack: What Happened to Tron?
Following the upgrade, the Tron ecosystem faced a security breach, with scammers hacking the firm’s official Twitter account to promote a scam. Using the compromised account, the scammers stole funds and moved them to accounts allegedly linked to OKX, a top crypto exchange.
Taking quick action on the matter, Justin Sun urged OKX to freeze the funds connected to the scam. Addressing X, Sun wrote on X,
We urgently call on @okx to immediately freeze and investigate the fraudulent funds deposited following the illegal takeover of the @trondao Twitter account. We trust that OKX will act swiftly and responsibly, ensuring that its platform does not become a safe haven for scam proceeds.
Further, seeking support from the investigation team, Sun exposed the scammer’s deposit address: EuzLBJdKCxYEPW7SDrn8GSaFkMEPxnW9Vk6fZr8ZrqwH. He also provided two transaction hashes:
5iA3uxng1Fu………..ZvMrZEA
5a1egGEwnxquSDK…………NNdHvhyH53ad
OKX Responds
In response to Justin Sun’s request, OKX Founder Star Xu posited that the platform will collaborate with law enforcement and may freeze funds based on preliminary evidence. However, he added that continued freezing requires legal documentation from authorities.
Despite these incidents over the past few hours, the TRX price remains stable, trading in a green zone.
Solana’s price has recently dropped below the $125 support level, causing concern among investors and market watchers. The drop comes amid large transactions involving wallets linked to FTX and Alameda Research.
These moves are believed to be related to the ongoing liquidation of assets for creditor repayments. The timing of these transactions has led to increased bearish sentiment around Solana, adding to its recent price struggles.
FTX and Alameda Research Transactions Contribute to Price Decline
On March 13, Solana price saw a sharp price pullback, falling by 5% on the day. This decline occurred after a major transfer of Solana tokens from Alameda Research. According to Arkham Intelligence, Alameda unstaked over $23 million worth of SOL, distributing the funds across 38 different addresses. This action followed earlier signs of a sell-off from FTX-linked wallets, fueling concerns about future pressure on the asset’s price.
ARKHAM ALERT: ALAMEDA ADDRESS JUST UNSTAKED $23M SOL TO 38 NEW ADDRESSES
An FTX/Alameda Staking address received $22.9M SOL from a staking address unlock and has just distributed these funds to 37 addresses that have previously received SOL from this address.
The market reaction to these movements was swift with holders becoming wary of the additional supply of SOL entering the market, fearing that further unstaking could lead to more downward price action.
Arkham Intelligence pointed out that these wallets have already distributed large amounts of SOL tokens to various addresses, which could increase the available supply on exchanges. This growing sell pressure has created caution among potential buyers.
Unstaking History of Solana Assets from FTX
FTX’s involvement with Solana goes beyond the March 12 transaction. Since November 2023, FTX and its trading arm, Alameda Research, have unstaked roughly 8 million SOL tokens, valued at nearly $1 billion. Many of these tokens have already been sold through major exchanges like Coinbase and Binance, contributing to the downward trend in Solana’s price.
The most notable of these events occurred in early March when FTX unlocked over 3 million SOL tokens, worth approximately $432 million.
Despite some positive momentum in the broader market at the time, Solana’s price remained subdued. This lag in performance compared to other altcoins, such as XRP and ADA, has further underscored the pressure placed on Solana by the ongoing liquidation of assets tied to FTX.
Potential for Continued SOL Price Weakness
As of now, SOL price is still under the influence of FTX’s ongoing liquidation process. Market participants are concerned about the 5.5 million SOL tokens, currently valued at around $693 million, that remain under the control of FTX and Alameda. These assets are still poised to be unstaked or sold, continuing the risk of additional downward pressure on Solana’s price.
Despite improving broader market conditions, such as the cooling inflation trend signaled by the latest U.S. CPI and PPI data, Solana’s potential for a price rebound appears limited.
As long as these assets remain in the hands of FTX and its affiliates, traders are hesitant to accumulate Solana, fearing further sell-offs. This overhang of potential selling may prevent Solana from regaining its upward momentum in the near term.
Solana Price Technical Outlook and Market Sentiment
From a technical perspective, Solana’s price action remains under pressure. After briefly reclaiming the $131 mark , the SOL price faced a quick reversal as bearish sentiment took hold. The Solana price has since dipped below the $125 support, which is now viewed as a critical level for future price action.
Technical analysis indicates that if Solana price fails to maintain support at these levels, further downside may be expected. Some analysts point to an Elliott Wave pattern suggesting a potential reversal at around $112.
As per crypto analysts CryptoUB, this level at $127 has seen multiple rejections, suggesting it could serve as a critical point for both long and short trading strategies. “Above = longs, Below = shorts,” the analyst stated, highlighting that the price consolidation on the 4-hour chart aligns with the daily level, presenting a strong case for a short position.
In addition to these technical observations, another market participant, CW8900, mentioned that there is a prominent sell wall around the $180 price point for Solana, but a solid buy wall at the current price range offers support.
This setup implies that if Solana price manages to break through the falling wedge pattern and surpass the $180 sell wall, it could potentially revisit its previous high. However, until these technical levels are tested and confirmed, the bearish pressure from ongoing FTX liquidations will likely continue to weigh on the price.
