JessyPL

🔹 ETH/BTC is in a Reversal Zone

Friends, today I opened the Ethereum/Bitcoin chart and noticed that it has reached a key support level, which is currently considered one of the strongest areas for a potential reversal.

In the medium term, a reversal from this level is highly likely.

🔤 Why is it important to watch the ETH/BTC pair?

The ETH/BTC pair reflects Ethereum's strength relative to Bitcoin. When ETH rises against BTC, it often signals a shift in demand from Bitcoin towards altcoins.

Thus, the growth of this pair can indicate the beginning of an «altseason» — the phase we've all been eagerly awaiting.

❕That's why it's crucial to closely monitor ETH/BTC — a reversal from this support level could serve as an early signal for broader market growth🔥

💰 Bitcoin on historically high buyback

Friends, if you pay attention to the chart, you will see that bitcoin reserves have fallen to an unprecedented low, which creates a strong shortage of coins and has a positive impact on the price of the asset.

🔤 A sharp yet strong market buyback has begun, which serves as a good driver for further gains.

The most interesting thing is that this happened in just a week. In a couple of days, the mood of the market has completely changed.

Yes, earlier I was expecting a deeper correction.

However, due to the recent news background (improved economic relations between China and the U.S.), the breakout of key resistance levels, and a sharp increase in buying volumes, the market outlook has shifted to a bullish trend.

❕ Given the current market components, the upward trend should continue in the medium term 🔥

💸 Dominance is breaking records again

Friends, Bitcoin dominance has reached its highest level since February 2021 — 64%!

🔤 The unfortunate part is that there are still no signs of a reversal, which means altcoins are likely to continue their decline.

Due to Bitcoin’s overwhelming dominance, the altcoin sector simply has no room to move independently.

That’s why expecting any strong growth from alts right now is unrealistic.

It’s also important to note that the current situation is amplifying the capitulation effect across the altcoin market.

❕ Many traders and investors, especially newcomers, are starting to exit their positions at a loss, which only accelerates the downward movement — and, at the same time, brings us closer to the bottom 🐳

🔎 The market is drawing market formations

Friends, altcoin market capitalisation has perfectly tested the multi-year support line today.

95% of useless projects are gone or didn't survive in the market - this is a good sign for new growth.

❕ If you've been waiting for a good time to accumulate altcoins, I think you can buy (although most of you are probably already sitting with bags of tokens) 🐳

Adoption of stablecoins as a growth factor

Today, I want to discuss the topic of stablecoin adoption.

🔤 Recently, Tether CEO Paolo Ardoino stated that an audit of Tether’s reserves could finally take place thanks to the cancellation of Chokepoint 2.0.

The company is currently working with a «Big Four» auditing firm to carry out the audit of its reserves.

The Choke Point 2.0 operation is a term used to describe the Biden administration's alleged strategy aimed at limiting cryptocurrency companies’ access to banking services.

🔎 What will this bring? It will reduce concerns about USDT, including accusations of illegal activities, and confirm Tether’s reserves (~$143 billion).

This is important since Tether is the 7th largest holder of U.S. government debt.

It was reported yesterday that the U.S. House will consider stablecoin legislation on April 2.

🔖 It seems that China also doesn’t want to fall behind in this «war», and rumors are already circulating that the government plans to accelerate the development of stablecoins backed by the yuan.

It’s safe to say that stablecoins will play an increasingly important role in the global economy, and their adoption and integration into financial systems will only benefit cryptocurrency.

❕ The market capitalization of stablecoins is currently $237 billion, nearly double last year’s figure. New ATHs for stablecoins are historically bullish for the crypto market, though time is needed.🔥

Amsterdam 🤗

💰 What was discussed at the Crypto Summit from the White House

Friends, yesterday the highly anticipated crypto summit took place, and here are the key takeaways that were discussed:

🔤 Trump:

— The United States is already one of the largest holders of BTC, with about 200,000 BTC.
— The Treasury Department and the Department of Commerce will explore ways to acquire additional BTC reserves.
— We are concluding Operation «ChokePoint 2.0» (the de-banking of the crypto industry).
— I want stablecoin legislation passed before the August recess. America will never sell its BTC.
— Assets not related to BTC will be stored in a separate vault.

🔎 Scott Bessette (U.S. Treasury):

— We will focus a lot on creating a regulatory framework for stablecoins and end the repression of the crypto industry.
— We will cancel and amend all previous recommendations from the IRS regarding cryptocurrency.

Bitcoin is no longer just «digital gold», but a strategic asset. It will be accumulated and held, with no pressure from potential government sell-offs, and finally, a regulatory framework for stablecoins will emerge.

And this is just what was said openly to the press. What was discussed behind closed doors — we’ll find out or see later.

❕ So, the best thing to do now is to be patient and wait, as such processes take time. But the most important thing is — the ice has broken 🔥

💸 Why is a market crash beneficial for Trump?

Friends, the image summarizes the rationale behind the current administration’s actions and the reasons why they negatively impact the market in the short term.

1️⃣ In the next six months, $7 trillion in debt needs to be repaid. If not, it will have to be refinanced.

2️⃣ The Trump administration does not want to refinance the debt at rates above 4%, yet this year, the yield on 10-year bonds reached 4.8%.

3️⃣ How can the yield on 10-year bonds be lowered? By creating the perception of slower economic growth, demonstrating that the inflation reduction program is working, and pushing for lower interest rates.

To achieve this, tariffs are introduced, causing uncertainty in the markets. As a result, investors start selling stocks and buying bonds, which lowers their yields.

🔎 This, in turn, gives the Federal Reserve grounds to cut interest rates, making debt refinancing even cheaper.

Although tariffs typically lead to higher inflation and should, in theory, increase bond yields, the opposite is happening: fear in the market is driving investors toward safe-haven assets — specifically, bonds.

❕ This is exactly what Trump’s team is aiming for in the short term — to reduce the cost of servicing the national debt 🐳