Liquidity

Matrixport: Liquidity indicators may not accurately predict BTC trends; attention should be paid to native crypto driving factors or policy impacts

ChainCatcher news, according to Matrixport analysis, the correlation between the rise in global liquidity and the increase in Bitcoin prices has certain limitations. The global liquidity indicator, measured by the total money supply of 28 central banks (in USD terms), although visually correlated with Bitcoin price trends, has its predictive accuracy questioned due to the non-stationarity of the time series and scale differences.The analysis points out that while the growth of money supply may have a lagging effect on the Bitcoin market, this lag time lacks strong theoretical support. Furthermore, although the correlation between Bitcoin and Nasdaq has slightly increased in recent years, it remains below the 60% peak during COVID, indicating that Bitcoin trading is more driven by its own dynamics rather than acting entirely as a proxy asset for tech stocks.Matrixport believes that the broad consolidation of Bitcoin prices may continue, and solely relying on liquidity indicators to predict market trends may not be reliable enough. In contrast, focusing on native driving factors of cryptocurrencies or macro variables with direct policy impacts (such as political leaders supporting cryptocurrencies) may be more valuable. Although market perceptions may have mathematical flaws, their widespread acceptance could still have a tangible impact on market behavior.

BNB Chain has launched a permanent liquidity support program with a total of 100 million USD, rewarding the native tokens of the top ten exchanges in the ecosystem

ChainCatcher message, after the previous two phases of $4.4 million liquidity activities, BNB Chain announced today the launch of a new $100 million permanent liquidity support program. This initiative aims to enhance on-chain liquidity by incentivizing the native project tokens of BNB Chain and collaboratively building long-term value for the industry.The activity starts today and will run for a trial period of 3 months, with adjustments made based on community feedback. BNB Chain native tokens listed on the following three categories of centralized exchanges will be eligible for corresponding rewards, with exchange rankings based on CMC spot rankings and standards:Category 1: Binance, Coinbase, Upbit - listing on any one of these can earn a maximum reward of $500,000.Category 2: Kraken, Bybit, and OKX - listing on any one of these can earn a maximum reward of $250,000.Category 3: Bitget, Mexc, Gate.io, Kucoin, Crypto.com - each listing can earn a reward of $10,000, with a maximum of $50,000.Each project can repeatedly earn rewards, with a single project eligible for a maximum of $800,000 in liquidity rewards across the three categories.Award requirements: The token must be a new token issued after the start of the activity and must be 100% a native token of BNB Chain. The token issuance time must exceed 48 hours to be eligible for rewards.On-chain basic requirements: Market capitalization of no less than $5 million, at least 10,000 unique wallet addresses, daily average on-chain trading volume of no less than $1 million, and distribution of tokens, etc.Final rewards will be distributed in the form of permanent liquidity. Before the rewards are distributed, BNB Chain will announce the reward list on its official Twitter for community review. Any cheating behavior will result in disqualification, and the first user to provide evidence of cheating will receive a $10,000 BNB Chain reward.

4E: The Federal Reserve keeps interest rates unchanged, slows down balance sheet reduction to release liquidity, and both the US stock market and cryptocurrency market rise collectively

ChainCatcher news, the Federal Reserve decided to keep the policy interest rate unchanged, in line with market expectations. At the same time, it announced a significant slowdown in the pace of balance sheet reduction (QT), easing market liquidity pressures. Powell reassured investors that the risk of recession is low, the U.S. economy remains strong, and the job market is still solid.According to 4E monitoring, the Fed's dovish stance boosted risk assets, with all three major U.S. stock indices rising on Wednesday: the S&P 500 up 1.08%, the Dow up 0.92%, and the Nasdaq up 1.41%. Tech stocks led the gains, with Tesla rising 4.68% and Nvidia up 1.81%.The cryptocurrency market rebounded significantly, with Bitcoin continuing to rise to $87,453 driven by tech stocks, before slightly retreating to $85,866 at the time of writing, a 24-hour increase of 3.6%. Other major tokens also rose collectively, with Ethereum returning above $2,000, while XRP surged over 11% due to the SEC dropping its appeal against Ripple.In the forex commodities sector, the U.S. dollar index soared, but the increase quickly narrowed to 0.21% after the Fed announced its decision to hold steady; U.S. oil closed up 0.39%; spot gold prices hit a historic high during trading for two consecutive days, approaching $3,052 during Powell's press conference.Powell acknowledged at the press conference that Trump's economic policies have brought significant uncertainty to the U.S. economy, but reiterated that the Fed is not in a hurry to adjust monetary policy. The updated dot plot indicates that the Fed will cut interest rates twice this year, consistent with the forecast from December last year. At the same time, the Fed downgraded its economic growth forecast while raising its inflation expectations, showing characteristics of "stagflation."

The BNB Chain liquidity competition is in full swing: the Meme sector is leading strongly, and the daily trading volume of BSC DEX has topped the entire network for two consecutive days

ChainCatcher news, according to GMGN data, the ongoing $4.4 million liquidity support program for BNB Chain's second round competition weekly ranking shows significant pattern differentiation. Currently, among the top 50 projects, the Meme sector occupies half of the seats with 22 entries, followed by AI (7), DeFi (6), and gaming (3).The trading volume dimension shows a two-tier differentiation trend, with Meme projects contributing 72.52% of the absolute share, among which 59% of Meme project tokens have increased by over 20%. The DeFi sector ranks second with a 14.61% share, with more than 60% of projects achieving over 20% growth. The AI sector contributes 1.75% of the trading volume, while the DeFi derivatives field accounts for 8.67%. Notably, among the top 50 participating projects, 24 have achieved over 20% growth during the competition period, with some assets experiencing nearly a hundredfold increase in a single day.Additionally, according to DeFilama's monitoring on March 18, the 24-hour trading volume of BSC ecosystem DEX reached $2.544 billion, surpassing Ethereum ($1.348 billion) to top the public chain DEX trading leaderboard.The second round of the liquidity incentive program is currently in full swing, and the latest developments of various early projects on BSC can be captured through official channels.
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