Huge ETFs Outflows
Over the last few days the entire crypto market has been under some extreme sell pressure. The EFTs have been on a 8 day streak of outflows and on 2/25 the Bitcoin ETFs saw the biggest outflow 1,138 million. All the tariff news have been a major factor in the broad selling and pressure on crypto and the markets. Bitcoin touched $78,200 before finding some support and bouncing back above $80,000 a few hours later. Technical charts show major support levels around the $78,000 range, however if that level gets broken Bitcoin could fall to the $73,000 range.
The majority of the selling seems to be associated with short-term holders (STHs)—defined as addresses that have held Bitcoin for a period of fewer than 155 days. While long-term holders have mostly kept their Bitcoin in their wallets a not sent many to the exchanges to sell.
Today (2/28) provided a little of a silver lining as the ETFs showed a nice inflow of buying totaling 338 million. Lets hope this trend continues over the weekend and into next week.
Chicago Mercantile Exchange Group to launch Solana Futures
The Chicago Mercantile Exchange (CME) Group, a globally recognized derivatives exchange, announced it will launch Solana futures contracts on March 17, pending a review by United States financial regulators.
The addition of Solana futures contracts gives traditional finance investors additional exposure to the crypto markets and provides the crypto markets with fresh capital injections that should support prices.
Memecoins Aren’t Securities
The SEC says it does not view memecoins as securities but warned any fraudulent tokens could still be subject to enforcement actions by other regulators.
The agency’s Division of Corporation Finance stated, memecoins “do not involve the offer and sale of securities under the federal securities laws” and “are akin to collectibles.”
BlackRock Adds 1%-2% IBIT To Model Portfolio
Blackrock the world's largest asset manager is adding a 1% to 2% IBIT shares to its target allotment for Target Allocation with Alternatives which are aimed at investors with higher risk tolerance. BlackRock’s model portfolios manage around $150 billion in assets as of December 31, 2024.
This is a huge step marking the first time BlackRock decided to add IBIT to any of their models. Assume this trend continues and additional allocations are made to other managed portfolios millions of dollars could flow into Bitcoin on a steady basis from BlackRock clients.
Trump to Host Crypto Summit
President Trump will host the first-ever White House Crypto Summit on March 7, bringing together industry leaders, CEOs, investors, and members of the President’s Working Group on Digital Assets. This meeting support the internal working group chaired by Sacks to create regulation framework for crypto.
Quick Hits
- MetaMask one of the largest crypto wallets plans to add support for Solana in May and Bitcoin will also be integrated in the third quarter.
- Stablecoins is the focus of the first US Digital Assets Subcommittee Hearing.
- Texas Senate Business & Commerce Committee Passes Strategic Bitcoin Reserve Bill SB 21 with a 9-0 Vote in favor.
- Arizona Senate advances bills for state-managed Bitcoin reserves.
Generally anytime the Fear and Greed Index goes under 25, it's a good time to buy!
