Weekly Web3 Research | The Market Saw A Large-scale Plunge; Bitcoin Valuation Indicators Entered The Adjustment Range

Weekly Trend Overview

This week, the crypto market was affected by the shock caused by the theft of a crypto trading platform. The market experienced a large-scale plunge. The weekly decline of mainstream coins hit the largest in recent times, and the trend was mainly continuous decline for most of the week. Market users show a tendency to choose risk aversion first. The trend of mainstream coins is a clear, continuous decline, and market sentiment has also dropped to a new low. Near the closing time of the week, the decline of most mainstream coins remains above 10%. There is still a possibility of continued decline in the short term, and the probability of bottoming out and rebounding this week is small.

Most mainstream cryptocurrencies have experienced continuous declines this week, mainly characterized by multiple rounds of declines. The current market trend in the short term is still very unclear, but the crypto market has entered an overall correction cycle.

This week, the price of BTC continued to fall, and has now dropped to the $83,000 range. There is still a risk of further decline. The low point of BTC was around $82,242, and the high point was around $96,473 during the opening period.

Compared with BTC, ETH price fluctuations are larger. The week’s high point is around $2,833, and the low point is around $2,219 in the current period. Affected by hackers’ large-scale purchase of ETH, ETH had a certain short-term rise, but the currency also fell rapidly as the overall market fluctuated. This week, the price trends of most key mainstream coins still show a diving and falling market trend. The current market sentiment has fallen to around 20, and the risk aversion sentiment is heavy. The overall market value growth of the crypto market has dropped significantly, reaching around $2.79 trillion, an increase of 0.01% in 24 hours.

Compared with last week, the overall cryptocurrency market has plunged this week. Affected by the news, there has been a large-scale decline and volatility. The current price of BTC is around $84,000. The current price of ETH remains around $2,276.

Currently, the overall crypto market is in an adjustment cycle, and it is still uncertain whether it will enter a new downward range. A new round of overall changes may occur during the weekend. MKR has the largest increase this week, but the actual increase is not large, reaching about 16% in a week.

The overall cryptocurrency market is expected to experience small fluctuations this weekend, and a bottom may be approaching.

Crypto Market

🔥Fox Business reporter Eleanor Terrett wrote on the X platform that the legal professionals she talked to believed that the U.S. Securities and Exchange Commission was trying to reach a settlement with crypto companies rather than directly dismissing the relevant lawsuits to “prove” that spending millions of taxpayers’ money was reasonable and save a little face.

🔥American producer and rapper Ye (Kanye West) tweeted, “YEEZY is committed to creating real currency. No matter what field I enter, I will learn from the best and treat their life’s work with the highest respect.”

🔥According to Theblock, collaborations between cryptocurrency companies and sports organizations are increasing, from Formula One team sponsorships to football, mixed martial arts, and snooker.

🔥According to News.bitcoin, citing TASS, the Russian Supreme Court is pushing for the classification of cryptocurrencies as property in criminal cases, aiming to strengthen the ability of law enforcement agencies to track, freeze, and confiscate illegal digital assets.

🔥10x Research analyzed that although Bitcoin ETFs have attracted $38.6 billion in net inflows since their launch in January 2024, their analysis shows that only $17.5 billion (44%) represents real long purchases. Most (56%) may be related to arbitrage strategies, in which short positions in Bitcoin futures offset capital inflows.

🔥According to CloverPool data, the difficulty of Bitcoin mining has been adjusted at block height 885,024 (4:29:38 yesterday, Beijing time), and the mining difficulty has been reduced by 3.15% to 110.57 T.

🔥According to the Procuratorate Daily Justice Network, Zhu Jianhua, a professor at Southwest University of Political Science and Law, and others published an article titled “Exploring the Establishment of a Step-by-Step Rule for Judging the Amount of Crime”, which pointed out that according to the law, there is not much controversy about classifying the behavior of state officials who use their position to illegally accept virtual currency from others and seek benefits for others as bribery.

🔥Adam, a macro researcher at Greeks.live, released an English community briefing on the X platform, revealing that community members are cautiously bearish in the short term, but still bullish in the long term, and expect the market to fluctuate in the near future.

🔥Infini founder @Christianeth posted on the X platform: “I know that hackers may monitor my tweets, so I sincerely tell everyone: I have done my best to prove to everyone that there are still kind and responsible people in this industry. I deeply regret my mistakes and will work hard to make up for them. I hope there is a way to recover our losses. I am willing to provide 20% of the stolen amount and promise not to take any legal action if the funds are returned.”

🔥According to Business Insider, Nic Puckrin, founder of The Coin Bureau, said that people in the current crypto market have begun to get tired of Meme coins, and current investor sentiment may be as low as when FTX collapsed, or even lower.

🔥IntoTheBlock published a statement stating that last Sunday, Bitcoin miners’ share of total on-chain transactions fell to 2.4%, the lowest level since May 2023.

🔥According to Guangzhou Daily, a Guangdong court recently concluded a virtual currency fraud case. The defendant Xie Moumou founded Company A to issue a virtual currency called “AA Chain”, promising investors that the currency would be listed on the exchange and receive high returns.

🔥Crypto analyst Miles Deutscher wrote that the overall market sentiment has returned to its 2024 lows, although the trading price is much higher than the previous level. The correlation between cryptocurrency market sentiment and altcoin performance is higher than Bitcoin’s, and altcoins have performed weakly recently.

🔥According to crypto analyst Miles Deutscher, the premium rate of Strategy (formerly MicroStrategy)’s market value relative to its Bitcoin holdings has dropped from 3.4 times in November last year to 1.6 times at present.

🔥The modular blockchain network Hemi Mainnet will officially launch on March 12, 2025, aiming to achieve deep integration of Bitcoin and Ethereum through Hemi Virtual Machine (hVM).

🔥According to Cointelegraph, Ohio’s Bitcoin Strategic Reserve Bill has passed the committee stage, one step closer to final approval.

🔥 According to The Block, Time.fun founder Kawz said he would consider issuing the platform’s tokens in the future. If other platforms are built on tokenized time, then a platform-based token can connect them all together.

🔥According to Alternative.me data, the cryptocurrency panic and greed index fell to 10 on the 27th (yesterday, it was 21), hitting a new low since June 2024, and the level was extreme panic.

🔥CryptoQuant research director Julio Moreno posted on social media that it is not possible to say that Bitcoin’s price has bottomed out now. All valuation indicators have entered the adjustment range, and this process may take more time. Note: MVRV is a relative indicator, which is the ratio of the circulating market value (Market Cap, MV) to the realized market value (Realized Cap, RV).

🔥According to TheCryptobasic, the price of Bitcoin fell to around $86,000 on Tuesday, hitting its lowest level since November last year and down more than 20% from its historical high in January.

🔥Adam, a macro researcher at Greeks.live, released an English community briefing saying that group members were generally bearish as Bitcoin plummeted from over $100,000 to a low of $80,000, which traders described as “crisis contagion.”

🔥According to TheCryptobasic, Geoff Kendrick, head of digital asset research at Standard Chartered Bank, pointed out that part of the reason for the depreciation of Bitcoin is the frenzy in the Meme coin market. Although Bitcoin is not directly related to this market, a series of Meme coin scandals are undermining investors’ trust in the entire cryptocurrency eco, a trend that is particularly unfavorable for altcoins.

🔥According to Cointelegraph, the legal and consulting costs of the FTX bankruptcy case have accumulated to $950 million, making it one of the most expensive bankruptcy cases in US history, second only to the Lehman Brothers case.

🔥According to CoinDesk, Timothy Massad, former chairman of the U.S. Commodity Futures Trading Commission (CFTC), called on Congress to prioritize the development of a stablecoin regulatory framework and postpone discussions on crypto market structure legislation for several years. He believes the current market structure proposals may exacerbate regulatory confusion rather than provide clear guidance.

Regulatory & Macro Policies

🔥According to Cointelegraph, the U.S. Montana House of Representatives rejected the “Strategic Bitcoin Reserve” bill by 41 votes to 59, with many lawmakers worried that the investment committee would use taxpayers’ money for excessive speculation.

🔥SEC documents show that the U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Gemini Trust Company, LLC, and decided not to take enforcement action.

🔥According to Cointelegraph, the U.S. state of Georgia has proposed a second Bitcoin reserve bill (SB228), allowing the state to invest in Bitcoin without any investment restrictions.

🔥According to Watcher.Guru, the U.S. Securities and Exchange Commission (SEC) has officially confirmed receipt of an application submitted by Grayscale to allow its Ethereum spot ETF to provide staking services.

🔥According to Yonhap News Agency, the South Korean Financial Intelligence Unit (FIU) announced on February 25 that it would implement regulatory measures on Upbit, South Korea’s largest cryptocurrency exchange. According to the regulations, Upbit will be restricted from cryptocurrency deposits and withdrawals for newly registered users in the next three months.

🔥According to Decrypt, Illinois Senator Dick Durbin proposed the Crypto ATM Anti-Fraud Act, which aims to curb the growing problem of crypto ATM fraud. The bill proposes to set a daily transaction limit of $2,000 and a 14-day transaction limit of $10,000 for new users, and requires operators to contact users directly for verification when the transaction exceeds $500 to prevent fraud.

🔥SEC documents show that the U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Gemini Trust Company, LLC, and decided not to take enforcement action.

🔥According to CoinDesk, the U.S. Senate Banking Committee held its first digital assets panel hearing, focusing on stablecoin legislation and the role of Congress in future crypto regulation.

🔥According to CoinDesk, the U.S. House of Representatives Fundraising Committee passed a resolution with a vote of 26-16 to initiate the repeal of the Internal Revenue Service’s (IRS) new tax regulations on decentralized finance (DeFi) platforms.

🔥According to Solid Intel, Oklahoma’s Strategic Bitcoin Reserve Act (HB 1203) has passed the State House Government Oversight Committee and will be submitted to the full legislature for a vote. The bill allows up to 10% of public funds to be invested in Bitcoin or digital assets with a market value of more than $500 billion.

Crypto Market Highlights

⭐️Last week, the overall trend of the cryptocurrency market plunged severely. The trend of mainstream coins has stabilized, but further decline is still possible. The overall total value of the market has changed greatly within a week, mainly due to consecutive rounds of decline. The overall market is unlikely to see a large-scale rise in the short term, and there is still a trend of further decline in the future.

⭐️This week, MKR’s increase in the crypto market ranked first among mainstream coins, but the currency’s increase was also quite limited. In the overall market volatility this week, this currency was one of the first to recover, with a weekly increase of about 16%. The current price remains around $1,701, and it is currently showing a relatively obvious continuous fluctuation trend. The rise and fall are expected to remain in a small range.

BTC & ETH Weekly Performance

Bitcoin (BTC)

(Data Courtesy Of TradingView)

This week, the price of BTC showed a stable trend after the opening. After being affected by external news, it began to fall in multiple rounds during the mid-week period. The continuous decline trend was very obvious, falling below $90,000. Currently, the price of BTC is in a small fluctuation trend, maintaining around $84,000. The price of BTC has been bottoming out for most of this week. There is a possibility and trend of further decline, which depends on the impact of the overall market trend.

Ethereum (ETH)

(Data Courtesy Of TradingView)

Compared with BTC, the price change of ETH this week is relatively intense, but the overall trend is similar, and the continuous decline is obvious. The price of ETH is stable below $2,300, with slight fluctuations, and it continues to rise and fall within a small range. The high point of ETH’s price in the week is around $2,850. There is expected to be a new round of ups and downs during the weekend, with a high probability of small price fluctuations.

Web3 Project Trend

This week, the total market value of the seven types of projects has dropped significantly, and the market conditions of most tracks have dropped significantly, with a diving trend as the main trend. The overall market was mainly affected by news factors, and there is still a possibility of further decline in the short term.