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Trading Desk Insights
BTC continues to slide along with the equity market as lingering concerns over the ongoing tariff dispute continue to weigh on sentiment. President Trump has proposed an additional 25% tariff on steel and aluminum imports from Canada, increasing the total to 50%. In retaliation, Canada has threatened to cut off electricity to 1.5 million Americans should these tariffs come into effect. As of now, CNBC reports that the formal paperwork to implement the tariff hike has yet to be signed.
The recent decline in the cryptocurrency market has forced traders to reconsider their bullish outlook, as seen in the shift from the $120K BTC call to a more conservative $100K call option. Despite this adjustment, the market still leans bullish beyond May, with call option volumes reaching approximately $16 billion.
Altcoins, excluding the top 10, have experienced significant losses, with market cap down 55% from December’s highs, in contrast to Bitcoin’s 30% drop. Notably, SOL, LINK, and UNI are among the altcoins now trading near their annual lows, presenting potential opportunities for those looking to enter at discounted prices.
Attention now turns to Wednesday’s CPI release. A softer print could fuel expectations of further rate cuts beginning in June, potentially triggering a risk-on rally. Conversely, a hotter-than-expected CPI could derail market optimism, setting up a deeper correction in BTC, potentially targeting the $73,000 level.
Stock futures remained flat on Tuesday, following a broad sell-off triggered by recession concerns, which drove the S&P lower and marked a third consecutive negative week. The Nasdaq posted its worst performance since September 2022.
In a notable market development, the spread between one- and six-month VIX futures flipped positive on Monday, signaling expectations of increased volatility in the short-term.
Lastly, the Cboe exchange has filed with the SEC for approval to allow staking for the Fidelity Ethereum Fund (FETH), according to a March 11 filing.
The News Room
Sen. Lummis Reintroduces Bill for Trump's Strategic Bitcoin Reserve, StarkWare Establishes BTC Treasury of Its Own and More
Sen. Cynthia Lummis has reintroduced the BITCOIN Act, aligning with President Trump’s Strategic Bitcoin Reserve initiative to establish a U.S. government-held bitcoin stockpile. Meanwhile, blockchain scaling firm StarkWare has created its own Strategic Bitcoin Reserve, committing to holding BTC as part of its treasury strategy. In the broader market, Bitwise launched an ETF tracking companies with significant bitcoin holdings, reflecting growing institutional adoption. Additionally, Axelar Foundation disclosed $30 million in AXL token sales, highlighting continued investment in cross-chain interoperability.
Sen. Lummis Reintroduces Strategic Bitcoin Reserve Bill
Sen. Cynthia Lummis has reintroduced the BITCOIN Act to establish a Strategic Bitcoin Reserve, aligning with President Trump’s executive order. The bill proposes a decentralized network of secure bitcoin vaults managed by the U.S. Treasury and aims to acquire 1 million BTC without new government spending. Republican lawmakers, including Sen. Tommy Tuberville and Rep. Nick Begich, support the bill. Meanwhile, blockchain firm StarkWare has launched its own Bitcoin reserve strategy, committing to holding BTC as part of its treasury. Additionally, Bitwise has introduced a new ETF focused on publicly traded companies with significant bitcoin holdings.
Bitwise Launches ETF for Corporate Bitcoin Holders
Bitwise has launched the Bitcoin Standard Corporations ETF (OWNB), tracking companies holding at least 1,000 BTC in their treasury. Strategy leads the fund with 499,096 BTC, followed by major mining firms MARA, CleanSpark, and Riot Platforms. The ETF is weighted by bitcoin ownership, capping the largest position at 20%. Meanwhile, Cboe BZX Exchange has filed to add staking to Fidelity’s Ethereum ETF, seeking to enhance investor returns. Other issuers, including Franklin Templeton and Grayscale, are also pursuing staking options under the SEC's new crypto-friendly stance.
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