CoinEx Research March 2025 Report : Signals from the Side Market

/EIN News/ -- HONG KONG, April 07, 2025 (GLOBE NEWSWIRE) -- CoinEx Research's March 2025 report highlighted a period of sideways movement and volatility in the cryptocurrency market. Bitcoin initially surged to $95,000 following Trump’s announcement of a national Bitcoin reserve but later retreated to $82,500 as investor enthusiasm faded. The broader crypto market is influenced by macroeconomic factors. While Bitcoin maintained dominance, liquidity shifts and easing central bank policies hinted at potential capital rotation into altcoins. Regulatory developments provided greater market clarity. Meanwhile, ecosystem highlights included Bittensor’s continued expansion, Sonic Network reaching $1 billion TVL, and a $12 million exploit on Hyperliquid raising concerns over decentralization. Stablecoin inflows of $6.8 billion indicated potential market stabilization, suggesting that a bullish shift could emerge in Q2 2025 if macro conditions improve.

Crypto Reflects Market Turbulence
The crypto market reacted to growing macroeconomic uncertainty and demonstrated volatility. Bitcoin began the month with a high of $95,000 regarding Trump’s announcement on the national Bitcoin reserve. However, disappointment showed that the reserve would rely on existing government holdings rather than market purchases. Bitcoin then hovered around $83,000 mid-month and dipping further to $81,500 by March 31. The S&P 500 shed over 7% from its all-time high, reinforcing the prevailing cautious sentiment across asset classes.

Source: TradingView; Data as of 31 March 2025

Bitcoin Resistance Level and Bitcoin Dominance
Bitcoin is currently testing a critical resistance at the upper boundary of a descending trendline (blue). A breakout could see Bitcoin challenging the $90,000 level (red resistance), whereas a rejection could result in a retracement toward the $80,000 support zone.

Bitcoin dominance continues its upward trajectory and is nearing the apex of a triangular consolidation pattern. The breakout direction from this formation will likely dictate short-term capital flows. Should macro conditions improve into April and May, there's potential for capital rotation into altcoins, many of which remain oversold and primed for a relief rally.


Macroeconomic changes and Regulatory Update
The Federal Reserve, Bank of Japan, and Bank of England—opted to keep interest rates unchanged. Additionally, the Fed’s updated dot plot still anticipates a 50 basis point rate cut by 2025 and announced a further reduction in the pace of quantitative tightening, decreasing the monthly runoff of maturing Treasury securities from $25 billion to $5 billion. The Senate Banking Committee advanced a bipartisan bill aiming to establish a formal framework for stablecoins, while the SEC officially dropped its appeal in the long-running Ripple case, ending a legal battle that spanned over four years.

Source: FOMC; Data as of 19 March 2025

Ecosystem Spotlight: TAO

Bittensor continues to expand its decentralized AI ecosystem, bolstered by February’s Dynamic TAO (dTAO) upgrade. The upgrade introduced a dual-token model, rewarding subnet builders, validators, and miners with TAO and Alpha tokens. In March, investor confidence grew with YZi Labs’ strategic investment in Tensorplex Labs, a team focused on subnet and app development. With over 80 subnets now active, the long-term impact of dTAO on ecosystem sustainability remains under observation. Read more in the CoinEx published article “Bittensor Subnets and the New Economic Model.”

Ecosystem Spotlight: Sonic Network
The Sonic ecosystem demonstrated growth through weekly launch of new applications and integrations, e.g. analytics support from Nansen enhanced transparency, partnerships with AlchemyPay and deBridge Finance improved on-ramp accessibility and cross-chain operability. A noteworthy highlight from Sonic’s co-founder, Andre Cronje, who teased an algorithmic stablecoin offering up to 23% APR—a bold move that drew both intrigue and skepticism given historical failures in this space, notably Terra-Luna. Sonic’s Total Value Locked (TVL) reached a major milestone of $1 billion on March 27, up from $654.8 million in early February, marking a 52.7% increase. This growth underlines rising adoption and suggests potential for further ecosystem expansion in the coming months.

Hyperliquid Incident and Centralization Concerns
In March, Hyperliquid, a decentralized perpetual futures exchange, faced a major exploit when a trader manipulated JELLY’s price to trigger a $6 million short liquidation. This caused Hyperliquid’s liquidity vault (HLP) to incur an unrealized loss of up to $12 million as JELLY’s market cap surged fivefold within an hour. To mitigate losses, validators voted to delist JELLY perpetuals and forcibly settled positions at a lower price, turning the potential loss into a $703,000 profit. The Hyper Foundation pledged compensation for affected users. However, this intervention raised concerns about the protocol’s decentralization. The event exposed systemic risks in Hyperliquid’s shared liquidity model, leading to a sharp TVL decline from $439 million to $316 million.

Stablecoin Inflows and Market Outlook
March saw net stablecoin inflows of $6.8 billion, a level historically linked to upcoming market uptrends, despite weak price performance and cautious sentiment. With macro risks largely priced in, this influx suggests sidelined capital is waiting for a bullish trigger. If macro conditions stabilize and liquidity improves, April and May could mark a shift in market momentum.

Conclusion
March 2025 highlighted a period of volatility and consolidation in the crypto market, with Bitcoin’s price swings reflecting broader macroeconomic uncertainty. While regulatory clarity improved and stablecoin inflows signaled potential market stabilization, investor sentiment remained cautious. Key developments, including Bittensor’s expansion, Sonic’s growing ecosystem, and Hyperliquid’s exploit, underscored both opportunities and risks within the sector. With central banks maintaining dovish policies and liquidity potentially rotating into altcoins, the coming months could set the stage for a market shift. If macro conditions improve, Q2 2025 may witness renewed bullish momentum, paving the way for new investment opportunities across the crypto landscape.

About CoinEx
Established in 2017, CoinEx is a global cryptocurrency exchange designed with users in mind. Since its launch by the industry-leading mining pool ViaBTC, the platform has been one of the earliest crypto exchanges to release proof-of-reserves to protect 100% of user assets. CoinEx provides over 1300 cryptocurrencies, supported by professional-grade features and services, for its 10+ million users across 200+ countries and regions. CoinEx is also home to its native token, CET, which incentivizes user activities while empowering its ecosystem.

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