March 24th Financial News

Daily News

Summary:

UK Chancellor Reeves eyes billions in civil service spending cuts; The U.S. economic data presents a mixed picture; Stournaras: A rate cut in April is expected…

[Quick Facts]

1. UK Chancellor Reeves eyes billions in civil service spending cuts

2. Japan's factory activity contracted at its quickest pace in a year during March, while the services sector also experienced a downturn:

3. The U.S. economic data presents a mixed picture

4. German President formally approves fiscal package, signaling a significant shift in fiscal policy

5. The U.S. is deploying a second aircraft carrier to the Middle East to intensify strikes against the Houthi rebels

6. Stournaras: A rate cut in April is expected

7. Waller: U.S. bank reserves remain above abundance

[News Details]

UK Chancellor Reeves eyes billions in civil service spending cuts

UK Chancellor Reeves is targeting approximately GBP1.5 billion (US$1.94 billion) in annual administrative budget cuts across government departments by the 2028/29 fiscal year. The measures are slated for announcement next Wednesday during the release of the semi-annual budget update. Concurrently, the UK's fiscal watchdog will unveil the latest economic and public finance forecasts. This initiative aims to ensure adherence to fiscal rules. Reeves plans a 10% reduction in civil service administrative budgets, projecting an annual saving of GBP1.5 billion by the end of the current parliamentary term.

Japan's factory activity contracted at its quickest pace in a year during March, while the services sector also experienced a downturn

The au Jibun Bank Japan Manufacturing Purchasing Managers' Index (PMI) fell to 48.3 in March from 49.0 in February, marking a one-year low. This index has remained below the 50.0 threshold, which separates expansion from contraction, for nine consecutive months.

Driven by declines in both production and new orders, Japan's factory activity saw its sharpest contraction in a year during March, signaling a concerning trend for the economy. The services sector, previously a bright spot for Japan's economy, also lost momentum, with business activity contracting for the first time in five months.

The U.S. economic data presents a mixed picture

Recent U.S. data releases have been inconsistent, sparking debate over whether anxieties stemming from the Trump administration's trade policies will significantly depress the slowing economy. "Soft data" signals a pronounced economic slowdown ahead, while "hard data" suggests that concerns about stagflation and recession are overblown. This dichotomy has unsettled Washington and Wall Street regarding the U.S. outlook. In a matter of weeks, the U.S. has shifted from being a global economic leader to the primary source of uncertainty. The OECD has stated that U.S. trade policies will contribute to a global growth slowdown.

German President formally approves fiscal package, signaling a significant shift in fiscal policy

On March 22, local time, German President Steinmeier officially signed the amendments to the Basic Law, removing the final hurdle for the German government's substantial fiscal plan, which will be financed through increased debt. This extensive fiscal initiative will allocate hundreds of billions of euros towards defense, infrastructure, and climate investments. This decision represents a major turning point in Germany's fiscal policy.

According to the amendment, the German government will relax the debt brake stipulated in the Basic Law in specific areas, permitting new debt to be utilized for defense, civil defense, intelligence agencies, and cybersecurity infrastructure development. This implies that any expenditure exceeding 1% of the gross domestic product can be financed through borrowing. Based on the current economic scale, this amount will surpass EUR44 billion in 2025. Furthermore, the government will establish a special fund of up to EUR500 billion, which is not subject to the debt brake, primarily for the purpose of repairing Germany's aging infrastructure.

The U.S. is deploying a second aircraft carrier to the Middle East to intensify strikes against the Houthi rebels

On March 21, local time, the U.S. will deploy a second aircraft carrier to the Middle East, intensifying strikes against the Houthi rebels. According to two U.S. defense officials, Secretary of Defense Hegseth has ordered the USS Harry S. Truman, currently operating in the Red Sea, to extend its deployment by at least one month. In the coming weeks, the USS Carl Vinson and its accompanying destroyers will join the carrier's escort. This marks the second time in the past six months that the U.S. has deployed two carrier strike groups to the Middle East.

Stournaras: A rate cut in April is expected

The European Central Bank (ECB) Governing Council member and Governor of the Bank of Greece stated on Friday that the restrictive nature of monetary policy has demonstrably diminished, though it remains somewhat restrictive. I believe the trajectory of monetary policy is clear, pointing towards further interest rate cuts. Two more rate cuts are anticipated this year, with a terminal rate of 2%. The next rate cut could potentially occur in April, though this may be imprudent given the current high level of uncertainty.

Waller: U.S. bank reserves remain above abundance

Federal Reserve policymakers, during this week's March FOMC meeting, concurred on a slower pace for the balance sheet reduction. Commencing in April, the Federal Reserve will decrease the monthly cap on the non-reinvestment of maturing Treasury securities from US$25 billion to US$5 billion. Officials maintained the cap for mortgage-backed securities at US$35 billion.

Waller dissented from this decision, favoring the continuation of the US$25 billion monthly reduction in Treasury securities.

In his Friday address, Waller stated that it would be appropriate to further slow or halt securities redemption as reserve levels approach an ample state. However, in my view, we have not reached that point, as reserve balances exceed US$3 trillion, a level indicative of abundance. There are no indications from money market indicators or my external communications suggesting that the banking system is nearing an abundant reserve level. The Federal Reserve possesses "multiple tools to address" potential market disruptions during portfolio runoff. The Federal Reserve should rely on these tools and develop contingency plans to address short-term pressures, rather than altering the current pace of balance sheet reduction.

[Today's Focus]

UTC+8 16:15 France March SPGI Manufacturing PMI Preliminary

UTC+8 16:30 Germany March SPGI Manufacturing PMI Preliminary

UTC+8 17:00 Eurozone March SPGI Manufacturing PMI Preliminary

UTC+8 17:00 ECB Governing Council member Holzmann speaks

UTC+8 17:30 UK March SPGI Services PMI Preliminary

UTC+8 21:45 U.S. March SPGI Manufacturing PMI Preliminary

Pending U.S. and Russian officials hold talks in Riyadh, Saudi Arabia, regarding the Russia-Ukraine conflict

Risk Warnings and Disclaimers

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Thomas

Economic

US President Donald Trump’s second term has seen the swift retraction of climate policy, leaving green investment, financing and infrastructure projects vulnerable. As the future of the Inflation Reduction Act is thrown into question, this uncertainty is forcing investors to navigate policy risks and focus more on long-term economic trends.

This was the focus of a roundtable hosted by OMFIF’s Sustainable Policy Institute, which brought together industry experts on US climate policy to examine the implications of the retreat from transition goals and net-zero targets.

Threats to clean energy investment

The election of a fully Republican government has shaken US climate policy introduced under President Joe Biden, threatening the over $500bn invested in US clean energy projects since the IRA was enacted. Trump’s executive orders over the last two months have paused the distribution of IRA funds and increased the focus on US energy security.

Further clarifications on the extent of changes to the previous administration’s policy package are expected in May 2025. The Congressional tax bill is likely to consider targeted revisions, and changes like shortening credit timelines and altering eligibility are probable. Certain tax codes, particularly those for electric vehicles, are also vulnerable to full repeal due to their unpopularity in the Republican party.

The IRA spans several critical sectors, including industry, energy and healthcare, and targets historically under-resourced communities. It works to secure a durable and broad energy transition through a series of tax codes that promote investment into clean energy and EVs. It also features investment packages to be incorporated by the Environmental Protection Agency and Department of Energy into national clean energy infrastructure projects, some of which have broken ground.

Speakers at the OMFIF roundtable discussed how the Trump administration might restrict communication to limit the overall access and scope of the IRA. They said that, even though certain projects might be underway, application and permitting challenges are likely to continue.

There is already evidence of this happening. The IRA handbook has been taken down from the White House website in a move that clearly signals the administration’s intentions. Earlier this month, the EPA terminated grants worth $20bn that were issued through the Greenhouse Gas Reduction Fund, a green bank created in 2022 through the IRA. This move is being challenged legally but reveals how the administration is threatening further restrictions on climate financing.

Low appetite for complete reversal

However, given the speed of capital flow into clean energy infrastructure by the IRA, its complete destruction remains politically undesirable. Clean energy investment in energy-producing communities has doubled, meaning that representatives from these historically Republican districts are going to be hesitant to enact policies to slow this progress. Infrastructure development likewise shows signs of bipartisan support. As such, energy is the key sector in the long term due to investment opportunities in energy storage infrastructure and renewable energy sources.

Investors must keep an eye on these long-term economic trends to navigate any short-term policy risks. The attractiveness of sustainable investment continues to be evidenced through the increased integration of climate risk assessment tools like carbon footprinting and climate value-at-risk models in investment strategies.

With the shifting position and uncertainty at the national government level, a crucial space is emerging for state-led initiatives like California’s climate disclosure laws. State governments can explore policy innovation and climate action plans, green banks and procurement strategies in this respect. Public funds also have a chance to lead in this space. For instance, the New York State Common Retirement Fund is committing billions to sustainable investment and identifying climate risk as a core fiduciary duty.

Policy moves from the current administration do not reflect the fact that transition still appears inevitable. A speaker at the roundtable argued that it is ‘the most predictable and consequential transition in human history’. As clean energy costs decline relative to those of fossil fuels, the long-term economic attractiveness of sustainable investment projects will continue to grow.

The Trump administration will most likely continue to favour US energy security over climate protection. Still, the space for discussions on investing in the transition will remain and continued collaboration between policy-makers and investors will be critical to ensure stability.

Source:Isabella Frymoyer

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

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Owen Li

Economic

Digital wallets have already begun to take hold of our payments behaviour, accounting for 29% of card transactions in 2023, up from 8% in 2019. Their capabilities are only set to grow as identity solutions, new forms of money and other functions come online. But regulators are starting to become concerned that there are only really two games in town: Apple and Google. Their respective wallets, bundled with iOS and Android respectively, absolutely dominate the market.

From a Borkian perspective, as yet, there is little cause for worry. It is hard to argue that consumer welfare has been harmed by the growth in digital wallet use. For one thing, if people didn’t want to use these wallets, they could still pay with cards or cash. It is only the convenience of wallets that has driven the immensely rapid growth of digital wallets in payments.

But the Financial Conduct Authority and the Payment Systems Regulator are concerned. A report published in February reveals several potential worries. Chief among these is the possibility that the control Apple and Google exert over their mobile ecosystem is anti-competitive.

‘Digital markets are a challenging area in competition, because incumbents can have huge user bases and significant market positions,’ said Dan Moore, head of strategy, analysis and engagement at the PSR. ‘The risk is that, without other wallets that are able to compete, we could see quality of service reduced, opportunities for innovation missed and additional charges enter the system and eventually be passed onto consumers.’

What is the central issue?

Are Apple and Google to blame for their market dominance? Or is there a dearth of attractive alternatives?

Apple at least was ruled to be engaging in anti-competitive behaviour by restricting access to its iOS near field communication system to Apple Pay. The European Commission investigated this and, in July 2024, extracted legal commitments from Apple to open this functionality to third-party app developers. With the release of iOS 18.1 in October 2024, Apple complied with this both in the European Union and in the UK, although the details in the UK are slightly different. However, we have yet to see a third-party wallet app achieve traction even with access to NFC systems.

This has at least theoretically improved the competitive environment, but if NFC access were the only limiting factor, then we would surely have seen competitors to Google Pay arrive on the Android app store. The fact is that Google and Apple have enormous user bases already and therefore benefit tremendously from network effects and economies of scale that other potential wallet providers simply cannot match.

Again, we return to the question: is this a problem? If users still get access to digital wallets, does it matter if they are only provided by big tech companies?

Protecting consumer welfare

The fundamental question is: is healthy competition valuable for its own sake or is it only worth pursuing if its absence is harming consumer welfare?

When answering this, regulators need to consider not just present consumer welfare, but possibilities. Even if a small group of companies achieves a dominant market share through innovation and improvements to efficiency, if viable alternatives do not exist, over time this market share may create the opportunity for these companies to extract value and degrade the service they offer at the expense of consumers.

The extreme concentration of market power is visible already. Apple Pay and Google Pay do not rely on open banking application programming interfaces but are driven by bilaterally negotiated contracts with the underlying card providers. The growing importance of these wallets means that Apple and Google have an immensely advantageous position in these negotiations. It is possible that this could result in them pushing costs onto other elements of the ecosystem, i.e. card issuers and banks, and that these could be passed onto merchants and eventually consumers.

To some extent, this may already be happening in the case of fraud. Card issuers are ultimately liable for unauthorised transactions, even if these take place through digital wallets. Although wallets typically have good security standards like biometric authentication, they can still be a vector for fraudsters to attack. Card issuers and merchants will end up bearing the additional overheads and chargebacks without being able to address wallet providers’ security standards themselves.

Open banking has not lived up to its promise

The FCA and PSR report highlights that digital wallets are entrenching card payments, and regulators would prefer account-to-account payments enabled by open banking to grow. But open banking has not yet lived up to its promise. Despite the support of regulators, successful, scalable business models built on making use of open banking APIs remain thin on the ground.

Does this suggest a lack of innovative spirit among payments fintechs? Open banking’s failure to take off reflects the challenge of encouraging grassroots innovation in payments. The industry runs on networks. Adoption, scaling and usability are everything. This gives incumbent payment system operators a huge advantage and means that only technology companies with their own adoption networks have managed to insert themselves into the industry.

Digital wallets are likely to form a core component of any solution that scales A2A payments. Moore said: ‘If A2A is going to provide a real competitive alternative to other payments systems – which we very much hope to see – it will have to be available for a variety of types of payments, including in-hand at point of sale. That probably means we need digital wallet solutions which include A2A over time.’

Perhaps the problem of excessive dominance of Apple and Google in wallet provision and the problem of a lack of vehicles for A2A payments have the same answer: a digital wallet offering convenient A2A payment solutions. As yet though, none has emerged and, even if one does, gaining traction will be a struggle given Apple and Google’s ability to steer users towards their own tools.

Encouraging innovation over regulation

So, what can regulators do? The PSR is certainly doing everything it can to encourage innovation from small players. Moore said: ‘My preference is always to encourage competition and for good outcomes to arise through that, rather than detailed regulation, wherever possible. We should remember that these wallets are producing a lot of convenience and consumer benefit, and that maintaining a positive regulatory environment for innovation is important.’

But at some point, we may be forced to confront the possibility that good ideas are not enough to compete with the big players in payments. The Competition and Markets Authority is investigating this and will issue a decision on the wallets’ ‘strategic market status’ by October 2025.

In an era where so much economic growth takes place in big tech companies, governments might be unwilling to apply too many brakes to their growth in order to create a generation of smaller fintech challengers. At that stage, we will have admitted that competition is no longer our main priority and we will have to hope that we have other levers to ensure that their market position does not compromise consumer welfare.

Source:Lewis McLellan

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

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Central Bank

Dollar ignores Powell’s dovish soundbites

The US dollar has been on a positive footing since the March FOMC meeting, as Fed Chair Jerome Powell downplayed the risk of a recession while maintaining caution over the inflation outlook. Treasury yields, in contrast, dipped after the meeting, and stocks on Wall Street rose, backing the notion of a dovish surprise by the Fed.

Week Ahead – Flash PMIs, US and UK Inflation Eyed as Tariff War Rumbles On_1

The dollar’s contradictory response could be explained by the fact that it hadn’t been tracking the recovery in yields from earlier this month, so this was just catchup. However, it’s debatable how dovish Powell really was. Yes, he soothed market nerves by suggesting that any inflationary effect from higher tariffs would likely be transitory, but he wasn’t particularly upbeat about the Fed hitting its 2% target anytime soon either.

The fact that FOMC members maintained their prediction of just two 25-basis-point-cuts this year and signalled gradual easing over the course of the forecast period indicates the Fed is still in inflation fighting mode. Markets, on the other hand, think there’s a strong likelihood of a third cut this year, as many investors are betting that the US economy will slow more than what the Fed is projecting.

Is the US consumer still spending?

Hence, growth data could climb to the top of investors’ minds over the coming months, if it hasn’t already, with inflation metrics attracting somewhat less attention. The highlight next week will be Friday’s personal income and outlays report, which includes the PCE inflation readings.

Week Ahead – Flash PMIs, US and UK Inflation Eyed as Tariff War Rumbles On_2

The Cleveland Fed’s own Nowcast model is estimating that the headline PCE price index moderated from 2.5% to 2.4% y/y in February but that the core PCE price index stayed unchanged at 2.6% y/y.

Such numbers are likely to neither please nor upset the markets, and so the personal income and spending component of the report could take the spotlight. Personal consumption fell by 0.2% m/m in January. But this was after several months of strong increases. Analysts are forecasting a rebound of 0.6% m/m in February. Therefore, any unexpected weakness could revive slowdown fears, putting the dollar on the backfoot again.

Week Ahead – Flash PMIs, US and UK Inflation Eyed as Tariff War Rumbles On_3

Recession angst could return

It’s possible, though, that recession concerns could resurface much earlier in the week, as the March flash PMI survey by S&P Global is out on Monday. The Conference Board’s consumer confidence index will be watched on Tuesday along with new home sales. Durable goods orders for February will follow on Wednesday, with pending home sales and the final estimate for Q4 GDP drawing some interest on Thursday.

Any unforeseen softness in the upcoming releases could have a devastating impact on risk appetite if they are accompanied by fresh tariff headlines. The April 2 deadline for the Trump administration’s reciprocal tariffs is fast approaching and the President may decide to ratchet up the rhetoric ahead of it.

Pound on stagflation watch

March has been a strong month for sterling, as it’s surged by about 3% against the US dollar. Much of that is attributed to the dollar’s dramatic pullback. But another factor is that UK economic indicators over the past couple of months have been somewhat better than expected. More importantly, inflation is on the rise again.

The Bank of England is facing a difficult dilemma, as it’s worried about a possible rise in both unemployment and inflation in the months ahead. The high risk of stagflation could cap further gains for the pound, although the UK’s exclusion from Trump’s trade war is a significant source of support for the time being.

The March PMI numbers due Monday will provide a crucial update as to whether British businesses are being affected by the global trade uncertainty, if any of them are planning to reduce their workforce and if prices pressures are easing or not. But investors will probably be focusing more on Wednesday’s CPI report for February.

Week Ahead – Flash PMIs, US and UK Inflation Eyed as Tariff War Rumbles On_4

The headline CPI rate jumped to 3.0% y/y in January, which is at the top of the Bank of England’s 1.0%-3.0% inflation buffer. The Bank expects CPI to reach 3.75% in Q3, so another reading above 3.0% is unlikely to alarm markets. Instead, investors will be looking underneath the surface, to see whether core and services CPI are accelerating at a similar rapid pace.

Last chance for reeves?

Any upside surprises could cast a dark cloud over the UK’s embattled finance minister Rachel Reeves’ Spring Statement later in the day where she is expected to outline big spending cuts. The bulk of the reductions will likely come from the welfare system – something that’s bound to be greeted more positively by the market than by voters.

A cut in spending would not only be taken as a sign that the government is not keen on any further tax increases to close the budget hole, but it’s also disinflationary, potentially making it easier for the BoE to resume rate cuts later in the year. For the pound, however, there could be an immediate boost from the budget update if Reeves also announces some new measures aimed at kickstarting the stagnant economy.

The run of data will continue on Friday with February retail sales and revised Q4 GDP figures.

Euro bulls pin hopes on PMIs as uptrend stalls

The euro’s incredible rally on the back of the German government’s substantial fiscal package and reform to borrowing rules appears to be petering out. The single currency is still the best performing major against the dollar in the year to date, but for investors to take the uptrend to the next level, they will probably need some fresh incentives.

That could come in the form of Monday’s flash PMI figures, but the odds aren’t looking good as business confidence has deteriorated in the face of US tariffs and Trump’s fury at the European Union’s retaliatory levies.

Week Ahead – Flash PMIs, US and UK Inflation Eyed as Tariff War Rumbles On_5

The Eurozone composite PMI was flat in February, as an improvement in manufacturing activity was offset by a weaker services PMI. A pickup in the latter, however, can’t be ruled out as the services sector is less exposed to the immediate effects of higher tariffs, and so the euro stands some chance of receiving a lift from the data.

Traders will also be keeping an eye on Germany’s Ifo business climate gauge on Tuesday for signs that the new coalition’s spending plans are boosting optimism.

Tariffs complicate RBA and BoJ policy paths

Elsewhere, inflation will be the dominant theme in Australia and Japan where the latest releases are expected on Wednesday and Friday, respectively. Inflation in Australia is forecast to have stayed at 2.5% y/y for the third consecutive month in February, which may not be very encouraging. However, concerns are growing about the economy amid the trade tensions that threaten to cause turmoil in Australia’s largest export market – China.

Week Ahead – Flash PMIs, US and UK Inflation Eyed as Tariff War Rumbles On_6

The Australian dollar hasn’t enjoyed much of a rally against the greenback, but a stronger-than-forecast CPI print could push it higher if investors reduce their rate cut bets for the RBA.

In Japan, tariffs are also weighing on the outlook and the Bank of Japan is hesitant to commit to a timeline for further rate hikes. The absence of more hawkish signals from the BoJ has led to a bit of a pullback in the yen, though not so much against the dollar.

But the yen could resume its ascent if the incoming data points to ongoing price pressures, bolstering the case for a near-term rate increase. Producer prices for the services sector are out on Wednesday, while the March CPI estimates for the Tokyo region are due on Friday.

Week Ahead – Flash PMIs, US and UK Inflation Eyed as Tariff War Rumbles On_7

A potentially bigger driver for the yen, however, could be Friday’s Summary of Opinions of the BoJ’s March meeting. If the summary reveals board members are keener on further tightening than indicated by Governor Ueda in his latest press conference, investors might bring forward their rate hike expectations, bolstering the yen.

Source:XM

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Devin

Economic

The cryptocurrency sphere has experienced continuous pressure over the last 95 days due to significant BTC price fluctuations. As altcoin holders grapple with diminishing values, the impending implementation of tariffs by Donald Trump on April 2 looms large, raising concerns about its effects on the crypto market.

What Are Trump’s Recent Statements Indicating?

In recent communications, Trump hinted at a potentially positive outcome, suggesting that April 2 could be a turning point. Previously, he had maintained that tariff flexibility was off the table; however, he has revisited this stance, proposing a mutual approach to tariff negotiations.

How Will This Affect the Market?

This change in tone has garnered a positive reception, particularly as the EU has deferred retaliatory actions. The market has priced in adverse scenarios, making any form of tariff leniency beneficial for cryptocurrency valuations. Such developments indicate a potential for recovery in the sector.

Trump’s remarks indicate a shift towards flexibility in tariffs.
The EU’s postponement of retaliatory measures suggests a cooperative approach.
Market participants have already absorbed negative sentiments.
The U.S. military’s actions in the Middle East could continue to influence global market stability.

As discussions progress, the intersection of trade policy and cryptocurrency dynamics could set the stage for notable shifts, impacting market confidence and investment strategies moving forward.

Source: CryptoSlate

To stay updated on all economic events of today, please check out our Economic calendar

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Justin

Cryptocurrency

SHIB Exchange Reserves Reported at Historic Low Levels

Reports indicate SHIB exchange reserves are at unprecedented lows, impacting the cryptocurrency landscape as of March 21, 2025.

The decline in SHIB reserves could influence market stability, though recent price trends show upward movement despite the absence of senior developer comments.

SHIB Exchange Reserves Hit Unprecedented Low Levels

Recent reports suggest SHIB reserves on exchanges have reached historic lows, yet market prices remain stable. Data analysis tools have offered this evidence, though direct sources have not confirmed.

The Shiba Inu community and developers have not shared official updates about exchange reserves. Recent metrics indicate market resilience, showing a 1.2% 24-hour increase despite reserve concerns.

Market Stability Amid Record-Low SHIB Reserves

The decline in reserves may have limited immediate effects on SHIB holders. Continued market activity presents a confident front, while exchanges maintain operational norms.

Without official commentary, financial analysts observe a cautiously optimistic outlook. Market movements suggest changes in trader behavior might affect cryptocurrency trends.

Low SHIB Reserves Mirror Past Market Consolidations

Similar reserve levels have previously hinted at market consolidations. Past occurrences showed varied outcomes based on market conditions and trader activity.

Experts recommend monitoring trends to predict future outcomes. Historical data indicates price dynamics may stabilize if trader activity supports the existing market framework.

Source: CryptoSlate

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Warren Takunda

Cryptocurrency

Bitcoin is being capped at $87,500 thanks to manipulation by one or more whales, new analysis says.

The latest market coverage by trading resource Material Indicators on March 20 reveals why BTC/USD is stuck in its current range.

“Spoofy the whale” gets blame for BTC price range

Bitcoin has managed to sustain $80,000 as support for more than a week while hitting two-week highs of $87,500 on March 20.

Despite following broad volatility across risk assets, BTC/USD may have gone even higher were it not for maneuvers of large-volume trading entities on exchange order books.

Looking at global trading platform Binance, Material Indicators argued that shifting blocks of ask liquidity above price were keeping it pinned in a specific area — a classic manipulatory device known as “spoofing,” which has often been used by whales in the past.

“If you are wondering why Bitcoin price hasn't been able to rally past $87.5k yet, the reason is price suppression from Spoofy the Whale,” it summarized in a post on X. Here’s Why Bitcoin Price Can’t Go Higher Than $87.5K_1

Here’s Why Bitcoin Price Can’t Go Higher Than $87.5K_1

BTC/USDT order book liquidity data. Source: Material Indicators/X

An accompanying chart shows that the liquidity in question currently sits at $89,000. It also tracks investor order classes, showing all but the largest “whale” transactions distributing.

Discussing the data, Material Indicators hinted that support at the recent multimonth lows of $76,000 was insufficient as a firm market floor.

Bitcoin bulls keep up battle for key trend lines

Meanwhile, popular trader Daan Crypto Trades said that the current low-timeframe area of interest at $84,000 was essential for bulls going forward.

“The bulls would want to hold on to the $84K-$85K region to keep the momentum. Otherwise you're at risk of visiting those lower liquidity clusters which then can end up in a full retrace as price is still choppy,” part of his own X post explained.

“Local market structure is trying to shift to a small uptrend but the bulls need to step in and keep it that way or it will just be a quick deviation/short stop hunt.” Here’s Why Bitcoin Price Can’t Go Higher Than $87.5K_2

Here’s Why Bitcoin Price Can’t Go Higher Than $87.5K_2

BTC/USDT liquidation heatmap. Source: Daan Crypto Trades/X

Daan Crypto Trades paid additional attention to the 200-day simple moving average (SMA) and exponential moving average (EMA), key bull market trendlines that bulls are currently in the process of trying to flip to support at around $85,000. Here’s Why Bitcoin Price Can’t Go Higher Than $87.5K_3

Here’s Why Bitcoin Price Can’t Go Higher Than $87.5K_3

BTC/USD 1-day chart. Source: Daan Crypto Trades/X

Source: Cointelegraph

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March 24th Financial News

[Quick Facts]

[News Details]

[Today's Focus]

What Trump turbulence means for US climate policy

Threats to clean energy investment

Low appetite for complete reversal

Source:Isabella Frymoyer

Digital wallet dominance: a competition issue or an innovation deficit?

What is the central issue?

Protecting consumer welfare

Open banking has not lived up to its promise

Encouraging innovation over regulation

Source:Lewis McLellan

Week Ahead – Flash PMIs, US and UK Inflation Eyed as Tariff War Rumbles On

Dollar ignores Powell’s dovish soundbites

Is the US consumer still spending?

Recession angst could return

Pound on stagflation watch

Last chance for reeves?

Euro bulls pin hopes on PMIs as uptrend stalls

Tariffs complicate RBA and BoJ policy paths

Source:XM

Will Trump’s Tariff Talks Impact Cryptocurrency Prices?

What Are Trump’s Recent Statements Indicating?

How Will This Affect the Market?

Source: CryptoSlate

Shib Exchange Reserves Reported At Historic Low Levels

SHIB Exchange Reserves Reported at Historic Low Levels

SHIB Exchange Reserves Hit Unprecedented Low Levels

Market Stability Amid Record-Low SHIB Reserves

Low SHIB Reserves Mirror Past Market Consolidations

Source: CryptoSlate

Here’s Why Bitcoin Price Can’t Go Higher Than $87.5K

“Spoofy the whale” gets blame for BTC price range

BTC/USDT order book liquidity data. Source: Material Indicators/X

Bitcoin bulls keep up battle for key trend lines

BTC/USDT liquidation heatmap. Source: Daan Crypto Trades/X

BTC/USD 1-day chart. Source: Daan Crypto Trades/X

Source: Cointelegraph

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