Welcome to the US Morning Crypto Briefing - We'll inform you about today's key cryptocurrency developments.
While having coffee, check how Standard Chartered is observing early signs of institutional investors using Bit as a hedge against stock market volatility. Meanwhile, Coinbase is concluding its worst quarter after the FTX collapse, and US regulatory authorities are getting closer to a unified stablecoin bill.
Standard Chartered: Using Bit to Hedge Market Volatility
Jeff Kendrick, Standard Chartered's digital assets research head, is seeing indications that institutional traders are beginning to use Bit as a hedge against stock market volatility.
In a recent exclusive interview with BeInCrypto, Kendrick emphasized that this trend is already underway, with investors seeking alternatives to traditional tools. "This is already happening," Kendrick said. "Investors previously used FX, especially AUD, due to high liquidity and positive correlation with stocks. But now Bit is being used because it trades 24/7 and has high liquidity."
Additionally, Kendrick expanded on Bit's evolving role in investment portfolios in a March-end investor note, suggesting that over time, Bit could serve both as a hedge against traditional financial market volatility and as a proxy for tech stocks.
He pointed to market expectations of a less severe tariff announcement on April 2nd in the US. "Since this quarter has been the worst for Nasdaq since Q2 2022, some portfolio rebalancing (buying) will be necessary," Kendrick added.
As of April 1st, 2025, Bit is showing resilience amid broader market uncertainty. The cryptocurrency is trading at $84,282, up approximately 3.32%. This increase coincides with an overall rise in global cryptocurrency market capitalization. Meanwhile, US stock futures, including Dow, S&P 500, and Nasdaq futures, are declining in pre-market trading, reflecting investor caution ahead of the expected tariff announcement.
One Day Before Trump's 'Liberation Day', Bit Options Active
Joshua Lim, FalconXCrypto's global market co-head, mentioned that cryptocurrency funds are actively purchasing Bit options at two key strike prices ahead of Wednesday's Trump tariff "Liberation Day": $75,000 to hedge potential downside losses and $90,000 to capitalize on potential price surges.
Lim emphasized that the options market is pricing in a 4% Bit price movement during the event. "The implied movement in Bit options is about 4% for the April 2nd event," he told BeInCrypto.
He also noted that traders are likely to continue purchasing put options as short-term protection, maintaining high option premium costs. "We believe the front of the options curve will maintain premiums, with traders hedging portfolios or replacing spot positions with limited loss option positions," Lim added.
Furthermore, he mentioned that the VIX increasing by 4 points indicates investors expect higher volatility in the coming days, aiming to manage risk or leverage price movements through options. "US stocks are also showing bids in options, with last month's VIX rising 4 points to 22v last week," he said.
Cryptocurrency Stocks Decline... Coinbase Worst Quarter Since FTX Collapse
Coinbase is concluding its worst quarter since the FTX collapse, with stock prices dropping over 30% since January. In Monday's US pre-market trading, it declined nearly 1% but has since recovered and is currently up about 1%.
Other cryptocurrency-related companies are also under pressure. Galaxy Digital Holdings dropped over 8% in pre-market trading, while mining companies Riot Platforms and Core Scientific are barely holding on with less than 0.5% gains.
Meanwhile, CoreWeave, which transitioned from Bit mining to AI infrastructure, is struggling after a disappointing IPO. Initially targeting $2.7 billion, it settled for $1.5 billion and lowered its proposed price from $47-55 per share to $40. Since listing last Friday, its stock has declined 6.8% and dropped 7.3% in the past 24 hours.
Byte Size Alpha
– Today's JOLTS report, a key indicator of US job openings, could strengthen the dollar and impact cryptocurrencies if data is strong, or potentially raise rate cut expectations and boost risk assets if there's a sharp decrease.
– Bit is experiencing its worst start to a quarter since 2018, declining nearly 12% in Q1 2025, but whale accumulation, exchange supply reduction, and signs of correction suggest potential rebound.
– Cryptocurrency scams are increasing, with fake Gemini bankruptcy emails and Coinbase employee breaches fueling phishing attacks.
– OKX appointed former NYDFS supervisor Linda Lacewell as chief legal officer, strengthening regulatory credibility while accelerating global expansion into regions like Europe and UAE.
– Unified US stablecoin regulation might soon become reality, with STABLE and GENIUS bills differing by only 20% and receiving strong bipartisan support with SEC and CFTC involvement.
– Efforts are ongoing for expanded cryptocurrency supervision, and CFTC's next chairman Brian Quintenz is meeting with Senator Chuck Grassley to discuss cryptocurrency spot market regulation.
