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Date: 2025-02-26 13:06:11
By Omkar Godbole (All times are given in Eastern Time unless stated otherwise)
The cryptocurrency market is making attempts to recover from yesterday's downturn, as on-chain metrics suggest signs of bitcoin's capitulation. Some tokens, such as MakerDAO's MKR, have shown remarkable performance with a 20% increase in the past 24 hours. This surge can be attributed to the DAO's buyback and burn mechanism.
IP, the native token of the decentralized intellectual property-focused blockchain Story Protocol, is also showing positive growth, having risen nearly 40%. The token's value has doubled in just two weeks following its listing on South Korean exchanges.
Other notable top performers include Celestia's TIA, XDC, QNT, and HYPE. Data from blockchain investigator Lookonchain indicates that whales have been taking advantage of the price dip in the HYPE token. Meanwhile, XRP is holding onto a crucial Fibonacci level, keeping the bulls optimistic for further gains.
Matthew Hougan, the chief investment officer of Bitwise Asset Management, believes that the cryptocurrency market is adjusting to the conclusion of the recent memecoin craze. In its place, productive sectors like stablecoins, real-world assets, and DeFi are expected to emerge. However, Hougan warns that until these sectors gain traction, the loss of energy will continue to weigh down the market.
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Regarding macroeconomic factors, the initial optimism following the Nov. 4 election is giving way to caution. This shift is evident in the recent drop in U.S. consumer confidence to an eight-month low, along with the highest one-year inflation expectations in 1.5 years. President Donald Trump's tariffs have been identified as the primary concern in nearly every household and business survey.
The gloomy sentiment and a strengthening yen may limit the upside potential for risk assets in the near future. Earlier this week, Pierre Wunsch, the head of Belgium's central bank, cautioned that the ECB risks inadvertently implementing too many rate cuts. The Fed, on the other hand, is unlikely to engage in quantitative easing anytime soon.
In terms of key events to monitor, the Senate Banking Committee, chaired by Senator Cynthia Lummis, is set to reevaluate cryptocurrency regulations during Wednesday's scheduled hearing titled "Exploring Bipartisan Legislative Frameworks for Digital Assets." Stay informed!
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