Gate.io Blog Daily News | BTC and ETH Continue to Decline; SLERF Accidentally Burned A Large Number of Tokens, but Solana Meme Is Still Hot; Technology Stocks Slightly Boost Cautious Global Markets

Daily News | BTC and ETH Continue to Decline; SLERF Accidentally Burned A Large Number of Tokens, but Solana Meme Is Still Hot; Technology Stocks Slightly Boost Cautious Global Markets

19 March 11:38

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![](https://gimg2.gateimg.com/image/article/17108194731_13.png)
## Crypto Daily Digest: BTC and ETH continue to decline; SLERF accidentally burned $10 million tokens, but the Solana meme is still hot
First, let's look at the trading activity of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETFs. According to Farside Investor data, on March 19th, Grayscale's GBTC funds continued to <a href="/price/flow-flow" target="_blank" class="blog_inner_link">Flow</a> significantly, reaching a maximum of $642.5 million this month. Meanwhile, Fidelity Bitcoin spot ETF (FBTC) inflow was $5.9 million, Bitwise Bitcoin spot ETF (BITB) inflow was $17.6 million, and ARK 21Shares Bitcoin spot ETF (ARKB) inflow was $2.7 million.

In the past two days, BTC ETH has shown a significant decline. According to Coingecko data, BTC is currently at $65,754.33, down 3.2% in 24 hours; ETH reported $3,405.20, down 16.2% in 24 hours. The profit-taking of long-term and short-term holders may be the most important factor, and for Bitcoin, this is a typical price retracement before halving. It is observed that the most likely retracement occurs 2-3 weeks before the halving occurs.

By observing the liquidation situation, it can be observed that the Bitcoin futures market is experiencing drastic fluctuations. The time of long liquidation coincides with increased volatility. Within 24 hours of March 18th, over $40 million in long positions were liquidated. Bitcoin's long liquidation soared to over $15 million on the same day within 4 hours.

When Bitcoin bulls are liquidated without buying pressure from traders, the price of Bitcoin will be negatively affected. The trading volume of Bitcoin has decreased by over $25 billion compared to its peak daily trading volume of $45 billion at 3.5 this year. This is also one of the reasons for the current price decline.

The price of Bitcoin is influenced by profit-taking by holders, macroeconomic events such as regulatory actions, and the Federal Reserve's monetary policy. However, in the long run, market participants still expect Bitcoin prices to rebound, especially as more and more financial institutions embrace Bitcoin.

The open interest contracts for Bitcoin futures in March reached a historic high, increasing from $22.2 billion on February 25 to $35.5 billion on March 14. Furthermore, the imbalance in leverage demand leads to distortion, which is rarely sustainable.

The perpetual contract includes interest rates that are recalculated every eight hours. A positive funding interest rate indicates an increasing demand for leverage among those holding long positions. Cointelgraph reported that on March 15, Bitcoin's financing rate dropped to 0.25% per week, considered neutral in markets where traders are usually bullish. This indicates little demand for short positions, suggesting they are hesitant to bet on Bitcoin prices falling below $65,000.

Recently, the meme project on <a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> has been very popular, and Slerf is a meme coin on Solana that has received widespread attention from the community. On March 17, the creator raised 535,000 SOL tokens to launch memecoin, but accidentally burned $10.4 million worth of Solana tokens while attempting to clean up the wallet.

But this move did not reset Slerf to zero. After the developer admitted on the X platform that they were "really sorry for messed up everything" and "destroyed LP and airdrop reserved tokens due to misoperation, and the minting rights have been revoked," the project actually "went viral" due to a mistake; Affected by community sentiment, prices skyrocketed and even reached a market value of $500 million within a few hours.

Even with risk factors, the pre-sale of Solana meme coins still attracts people's interest. For example, the pre-sale of a project called "Are You Stupid" accumulated 420.69 SOL ($83,717) in a single transaction. As of March 16th, users have 48 hours to send funds to the "areyoustupid.sol" wallet address, and investors have a 99.99% chance of not receiving any return, but they still invest in it.

The recent meme coin craze is easy to compare with the foam of the <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> First Token Issuance (ICO) era in 2017, when several crypto projects raised millions of dollars, but many failed to deliver.

## Market Trends: BTC enters the adjustment range, and Altcoins generally fall
The market's overall trend is weak, with BTC entering an adjustment range and Altcoins generally falling significantly. The inflow of BTC ETFs has significantly decreased, while the Grayscale Bitcoin Trust Fund (GBTC) maintains a huge outflow, even reaching a new high since the passage of spot ETFs.

Regarding macroeconomics, US stocks rose slightly, and the market is generally concerned about the Federal Reserve's monetary policy meeting this week. This meeting may significantly impact the overall trend of the financial market, so investors are cautious about this.
### Market Hotspots
1. The strong Meme and Artificial Intelligence (AI) concept tokens in the early stage led the market to decline, with a general decline of over 15%. The significant decrease in NEAR tokens is consistent with the market's expectation that AI-related projects may be hyped up through the Nvidia Artificial Intelligence Conference. After the conference, NEAR tokens indeed showed a downward trend.

2. SOL tokens experienced a pullback after breaking through $200, leading to a general decline in tokens on the Solana chain. Yesterday afternoon, after the launch of the sloth project SLERF, it surged more than ten times in a short period, attracting widespread market attention. Gate.io also launched SLERF for the first time yesterday. Another popular Meme token, BOME, had a high initial increase and has now entered a correction phase, falling 66% from its historical high.
![](https://gimg2.gateimg.com/image/article/17108195101.png)
Source: Gate.io
### Analysis and Outlook
Overall, the market has entered a period of adjustment after the Meme frenzy, and investor sentiment is relatively cautious. With the adjustment of BTC, Altcoins may continue to be impacted, and it is necessary to monitor the trend of BTC closely. In addition, the market's attention to the Federal Reserve's monetary policy meeting is also high, which may, to some extent, affect the cryptocurrency market trend. When choosing investment targets, investors must be cautious and closely monitor market trends.

## Macro: Wall Street closed higher, market enthusiasm for technology stocks regains tension with the Federal Reserve
On the global market side, major Wall Street stock indexes closed higher on Monday, with large growth stocks such as Alphabet and Tesla supporting the rebound of the tech-dominated Nasdaq index. Meanwhile, investors anxiously await the Federal Reserve's meeting this week.

The Dow Jones Industrial Average (.DJI) rose by 0.20% to 38790.43 points, while the Standard & Poor's 500 Index (.SPX) rose by 0.63% to 5149.42 points; The Nasdaq Composite Index (.IXIC) ended three consecutive days of decline, increasing 0.82% to 16103.45 points.

The NVDA.O Artificial Intelligence Developers Conference opened, and CEO Huang Renxun kicked off the company's annual developer conference with a series of announcements. He introduced Nvidia's latest chip, which is 30 times faster than its predecessor in specific tasks. The new chip has become the focus, and Nvidia's stock price rose 0.7% but closed far below the intraday high.

Google's parent company, Alphabet, is in talks to integrate Google's Gemini AI engine into the iPhone, which has significantly boosted the market. Supported a nearly 3% increase in the communication services sector, reaching its highest level since September 2021 and leading the way in the 11 major sectors of the S&P 500 index.

Meanwhile, the market expects the Federal Reserve to maintain interest rate stability on Wednesday, with attention paid to the latest economic data from policymakers, comments from Chairman Jerome Powell, and interest rate forecasts. Last week's stronger-than-expected inflation report led traders to reduce their bets on this year's interest rate cut, with the market expecting a 71 basis point cut this year. At the beginning of this year, traders expected a price reduction of 150 basis points.

The Bank of Japan becomes the focus of the Asian market. The Japanese stock market fell on Tuesday with regional markets. In contrast, the Japanese yen remained stable and is about to hold a crucial Bank of Japan meeting, which could end eight years of negative interest rates and usher in the country's first policy tightening since 2007. All signs indicate that the central bank is abandoning its ultra-loose monetary policy.

Regarding commodities, US crude oil fell 0.13% to $82.61 per barrel, while Brent crude oil fell 0.09% to $86.81.
On Tuesday, gold prices remained stable as investors remained cautious ahead of this week's Federal Reserve policy meeting, which may provide further clues about the timing of potential interest rate cuts this year. Spot gold rose 0.1% to $2,161.79 per ounce, and US futures rose 0.1% to $2,165.30.

<div class="blog-details-info">
<div>Author:**Sherry S. & Icing**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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