March 29, 2023

Bitcoin showed signs of resilience Wednesday, shedding tremors from the U.S. Commodity Futures Commission's lawsuit against crypto exchange Binance to recover and go above $28,000. The world’s largest cryptocurrency by market cap was up 6% over the past 24 hours to around $28,400. It has added almost 72% this year, with its best quarterly gain in two years. Just three months ago, some experts were mulling the possibility of bitcoin falling to as low as $12,000 this quarter, after its valuation had declined by 76% since November 2021. The rebound has put bitcoin ahead of ether, the second-largest cryptocurrency by market value, which appears on track for a 50% quarterly gain. Gold has added over 7%, while Wall Street's tech-heavy Nasdaq Composite index has rallied 15%. 

Bitcoin's year-to-date price chart

The Crypto Fear & Greed Index, a metric that aims to measure current sentiment in the market, dropped to 59 on Tuesday, sliding from a nearly 18-month high of 68 reached one week ago, according to data from alternative.me. Readings above 50 indicate market sentiment has moved into the "greed" stage, while those below 50 indicate "fear." The index hadn't been as high as 68 since November 2021 when bitcoin reached an all-time record of nearly $69,000. Although the gauge has declined since last week to 59, it remains in the "greed" zone, suggesting investor sentiment for now remains bullish. The rebound to "greed" in 2023 comes as crypto prices bounced despite a growing number of regulatory crackdowns and macroeconomic fears. 

With the ink still drying on the Binance lawsuit, CFTC Chairman Rostin Behnam reiterated Tuesday at a congressional hearing he believes ether is a commodity – a potentially controversial assertion that differs from what his counterpart at the Securities and Exchange Commission has said. A lawmaker on the House Appropriations Committee asked Behnam during a budget hearing Tuesday whether he believes ether should be on that list. "I believe they are a commodity,” Behnam said. “And because they are listed on CFTC exchanges, we do have a regulatory relationship – obviously with the derivatives market and that product, but the underlying market as well.”

Stacks (STX), the native token of the Stacks network, a layer 2 platform built on top of the Bitcoin blockchain, has soared in March amid booming hype for Bitcoin Ordinals and growing total value locked on the protocol. The project is also set to undergo an upgrade later this year to increase its speed and scalability.

Known for being the first token distributed through the first-ever U.S. Securities and Exchange Commission qualified token offering in 2019, STX has gained 23% in March, reaching $1.25, the token’s highest level since a year ago. Although the token's gains have slowed slightly toward the end of March, it is still up 350% over the last three months, bringing its valuation to $1.5 billion.

STX is the second top-performing digital asset in March of those with market caps above $1 billion, behind XRP, according to data from Messari.

Chart of the Day

Source: TradingView

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