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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
03/31/2025

What Is the Crypto Market Watching Right Now?

Over the past week, both the crypto market and traditional assets traded in a subdued state as investors awaited the impact of tariffs set to take effect on April 2. However, that wasn't the only factor weighing on the market. Positive signals from regulatory policy and the rapid growth of stablecoins are drawing particular attention. Tariff Impact & Market Sentiment On March 27, President Trump announced a 25% tariff on imported automobiles

What Is the Crypto Market Watching Right Now?

Over the past week, both the crypto market and traditional assets traded in a subdued state as investors awaited the impact of tariffs set to take effect on April 2. However, that wasn't the only factor weighing on the market. Positive signals from regulatory policy and the rapid growth of stablecoins are drawing particular attention.

Tariff Impact & Market Sentiment

On March 27, President Trump announced a 25% tariff on imported automobiles and reciprocal tariffs on U.S. trading partners. This heightened risk-off sentiment, yet markets held steady — largely driven by short squeeze activity rather than any fundamental shift.

Against this backdrop, liquidity on centralized exchanges remained thin. Spot and derivatives trading in BTC, ETH, and SOL showed no breakout, even during what is typically a period of month-end portfolio rebalancing flows.

Meanwhile, GameStop announced plans to issue $1.3 billion in zero-coupon convertible notes due 2030, with the stated goal of buying Bitcoin as a treasury reserve asset. This reflects a growing trend, with an increasing number of publicly listed companies — including Metaplanet, Solidion Technology, and Semler Scientific — announcing plans to hold Bitcoin as part of their long-term financial strategy.

Crypto Policy & Regulatory Progress

The U.S. is taking a more proactive stance on crypto regulation. President Trump recently spoke at the Digital Asset Summit, emphasizing the importance of American dominance in the space. Legislative efforts such as a stablecoin bill and a crypto market structure framework are also being advanced.

On March 21, the U.S. Securities and Exchange Commission (SEC) held the first of five planned crypto roundtables, focused on determining the conditions under which a digital asset may be classified as a security. These discussions will continue through June 2025, covering topics including digital asset custody, tokenization, and decentralized finance (DeFi).

The U.S. Senate also recently passed a resolution 70–0 to overturn the IRS's DeFi broker reporting rule. The resolution now awaits President Trump's signature to take effect.

The Stablecoin Boom & the Multi-Chain Trend

Stablecoins remain a major focal point. On March 26, the U.S. House of Representatives released a draft of the "Stablecoin Transparency and Accountability for a Better Ledger Economy" (STABLE Act), which would impose stricter rules on stablecoins. The bill prohibits paying yield to stablecoin holders and blocks the launch of new algorithmically collateralized stablecoins for the next two years.

At the same time, several institutions are pushing to expand the stablecoin market. World Liberty Financial is developing a new stablecoin backed by U.S. Treasuries. Fidelity Investments is piloting its own stablecoin, though it has yet to confirm an official launch plan.

The state of Wyoming is also entering a testing phase with the Wyoming Stable Token (WYST). Notably, WYST won't be limited to Ethereum — it's expanding to multiple blockchains including Avalanche, Solana, Arbitrum, Optimism, Polygon, and Base, through a partnership with LayerZero. This signals that the future of stablecoin adoption may be inherently multi-chain, rather than Ethereum-centric as it is today.

Similarly, BlackRock has expanded its tokenized money market fund BUIDL to the Solana blockchain, following its existing presence on Ethereum, Arbitrum, Avalanche, Optimism, and Polygon. In March, BUIDL attracted an additional $1.3 billion, bringing total assets under management to $1.9 billion. While the majority of capital still sits on Ethereum (90% of BUIDL's total supply), the expansion to other chains signals that institutional issuers are prepared to adapt to shifting capital flows and liquidity dynamics going forward.

Crypto Market Recap & Outlook

The crypto market is gradually recovering, with Bitcoin reclaiming the key support level at its 200-day moving average. However, the Coinbase Coin 50 index remains in a downtrend, reflecting broad weakness across altcoins.

In the near term, we expect price action to remain range-bound — at least until April 2, when Trump's tariffs officially take effect. Futures funding rates are sitting low while stablecoin supply on exchanges is at elevated levels, suggesting many traders are still sitting on the sidelines.

Historically, April, May, and June tend to be unfavorable months for the crypto market. As such, maintaining a defensive posture may be a prudent strategy until more meaningful economic data comes in.