Author: dfmines

World Liberty Financial (WLFI), the Trump family’s crypto project, is planning to release a stablecoin, raising concern over the US president’s exposure to the digital asset industry.The project released a memecoin immediately prior to President Donald Trump’s inauguration, the price of which skyrocketed and crashed soon after, causing many to accuse WLFI of a pump-and-dump scheme. WLFI has also made multimillion-dollar purchases of crypto tokens immediately prior to important crypto-related events the president has attended or announcements influencing the industry. WLFI purchased $20 million of various tokens ahead of the March 7 White House Crypto Summit. As World Liberty Financial’s portfolio grows and regulator oversight disappears from the crypto industry, observers and legal scholars are becoming increasingly concerned over conflicts of interest within the Trump administration. Son Eric Trump pumps his father’s memecoin ahead of the inauguration. Source: Eric TrumpTrump’s stablecoin USD1 riddled with liabilities WLFI announced on March 25 that it will launch the new stablecoin USD1, “100% backed by short-term US government treasuries, US dollar deposits, and other cash equivalents.”WLFI co-founder Zach Witkoff said in the announcement that the coin can be used for “seamless, secure cross-border transactions.” News of USD1’s forthcoming release came just days after WLFI secured more than $500 million through the sale of its own $WLFI tokens. Observers have already begun to raise the alarm about the possible security risks posed by a stablecoin connected to the president. There are also concerns over the possibility of market manipulation and violations of the emoluments clause of the US Constitution — a section of the document that protects against undue influence over American leaders. As regards the latter, cyber and digital media attorney Andrew Rossow told Cointelegraph that the stablecoin is “a direct affront to constitutional safeguards meant to prevent conflicts of interest.”“With Trump and his family controlling 60% of World Liberty’s equity interests, the USD1 stablecoin could facilitate indirect financial gains or undue foreign influence over US policy, particularly if foreign entities invest in or use the stablecoin.”WLFI makes up a sizeable chuck of Trump’s estimated net worth. Source: FortuneCorey Frayer, who worked on crypto policy at the SEC under former President Joe Biden, said that the project’s emphasis on cross-border payments was particularly worrisome and that foreign entities may invest as a way to gain favor with Trump.“There’s a lot of opacity around this marketplace, and prior relationships with illicit finance,” Frayer told The New York Times. US policymakers have already noted the possibility for foreign influence following the launch of Trump’s eponymous memecoin in January.At the time, Democratic Representative Maxine Waters — a top Democrat on the House Financial Services Committee — wrote that “Anyone globally, even individuals who have been sanctioned by the U.S. or banned from our capital markets, can now trade and profit off of $TRUMP through various unregulated platforms.”Related: Congress repealed the IRS broker rule, but can it regulate DeFi?In addition to potential foreign influence, observers are concerned that Trump’s crypto ventures could threaten market stability and integrity, and open up global markets to manipulation. Referencing USD1, Heath Mayo — the founder of the Trump-alternative conservative movement Principles First — said that a sitting president issuing an instrument backed by public debt should be illegal, adding that the project had “terrible incentives and corrupt use of US taxpayer credit.”Rossow said that the president’s role in a stablecoin project while at the same time working to craft stablecoin legislation in the form of the GENIUS Act is “a constitutional violation that could destabilize regulatory integrity.”Trump’s influence over the industry and ability to drop enforcement actions against crypto executives who support him creates “an uneven playing field, disadvantaging competitors and violating principles of equal protection under the law.”What options do regulators have regarding Trump’s crypto conflicts of interestTrump, who has long stated an affinity with former President Andrew Jackson, seems to be holding to the latter’s strategy of acknowledging judicial rulings — and then doing what he wants regardless. The presidential administration has already shown that it is willing to defy orders from federal judges when, earlier this month, it ignored a verbal order from a federal judge to turn around two planes full of alleged gang members bound for the Terrorism Confinement Center in El Salvador. Regarding crypto, Senator Elizabeth Warren has already called for an ethics probe into Trump’s crypto activities. She said that the president’s memecoin “massively enriched Trump personally, enabled a mechanism for the crypto industry to funnel cash to him, and created a volatile financial asset that allows anyone in the world to financially speculate on Trump’s political fortunes.”Warren, a long-time crypto critic, has taken aim at WLFI. Source: Senate Banking CommitteeThe probe, if it had a chance to begin with, doesn’t appear to have gone anywhere, and Congressional Republicans are busy working on the GENIUS Act, which even has the support of a handful of Democrats. What, if anything, can be done?Rossow said that, despite changes in SEC leadership, other agencies like the Financial Crime Enforcement Network could still pursue investigations. He also noted that state-level action from local regulators and Attorneys General is “not just possible but imperative, especially in states with robust consumer protection laws.He added that international regulatory bodies could exert pressure, stating that the “global nature” of crypto means that foreign governments could work for better oversight and more robust regulations. Related: Who’s running in Trump’s race to make US a ‘Bitcoin superpower?’In any case, he said that the current situation demands multi-faceted action as there is currently a need to “safeguard the principles of fair governance and maintain the US’s credibility in the global financial system.”Some in the crypto industry see no problem at all and believe the president’s involvement is just another sign of how the industry is reaching mainstream appeal. Chris Barrett, senior director of communications at Chainlink, congratulated the project, stating that “The global financial world runs on the U.S. dollar, and stablecoins are about to make that even harder to change.”Arnoud Star Busman, CEO of European stablecoin issuer Quantoz Payments, told Cointelegraph that USD1 is reflective of “increasing validation from world-leading brands that stablecoins are carving the path for the mainstream financial industry to access crypto assets and tokenized real-world assets.”The Blockchain Association — an industry lobby group — declined Cointelegraph’s request for comment. Magazine: Arbitrum co-founder skeptical of move to based and native rollups: Steven Goldfeder

Update March 26, 2:36 pm UTC: This article has been updated to include quotes from Brickken CEO Edwin Mata.BlackRock’s Ethereum-native tokenized money market fund has more than tripled in value over the past three weeks, nearing the $2 billion mark amid rising demand for safe-haven digital assets.BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) saw an over three-fold increase over the past three weeks, from $615 million to $1.87 billion, according to Token Terminal data shared by Leon Waidmann, head of research at Onchain Foundation, a Web3 intelligence platform.BlackRock BUIDL capital deployed by chain. Source: Token Terminal, Leon Waidmann“BUIDL fund TVL exploded from $615M → $1.87B in just 3 weeks. The tokenization wave is hitting faster than most realize,” the researcher wrote in a March 26 X post.BlackRock’s BUIDL fund is part of the wider real-world asset (RWA) tokenization sector, which refers to financial products and tangible assets such as real estate and fine art minted on the blockchain, increasing investor accessibility to and trading opportunities for these assets.The surge in BlackRock’s fund reflects a growing institutional appetite for tokenized RWAs due to more regulatory clarity, according to Edwin Mata, co-founder and CEO of Brickken, a European RWA platform.“The US is witnessing a notable shift toward a more crypto-friendly regulatory environment,” the CEO told Cointelegraph, adding:“The SEC has recently concluded several investigations without enforcement actions, including those involving Immutable, Coinbase and Kraken. This trend suggests a move toward clearer regulatory frameworks that support innovation in the digital asset space.”Related: Crypto markets will be pressured by trade wars until April: AnalystBlackRock launched BUIDL in March 2024 in partnership with tokenization platform Securitize. In a recent Fortune report, Securitize chief operating officer Michael Sonnenshein said the fund aims to make offchain assets “unboring.” RWAs reached a new cumulative all-time high of over $17 billion on Feb. 3, following Bitcoin’s (BTC) decline below $100,000.Related: Redemption arcs of 2024: Ripple’s victory, memecoins’ rise, RWA growthRWAs near $20B record high amid Bitcoin’s lack of momentumThe total value of onchain RWAs is less than 0.5% away from surpassing the $20 billion mark, with a total cumulative value of $19.57 billion, according to data from RWA.xyz.RWA global market dashboard. Source: RWA.xyzRWAs will likely rise to new all-time highs in 2025 as they attract investor interest amid Bitcoin’s lack of momentum, according to Alexander Loktev, chief revenue officer at P2P.org, an institutional staking and crypto infrastructure provider.“Given the recent moves we’ve seen from major financial institutions, particularly BlackRock and JPMorgan’s growing involvement in tokenization, I believe we could hit $50 billion in TVL,” Loktev told Cointelegraph.Traditional finance (TradFi) institutions are “starting to view tokenized assets as a serious bridge to DeFi,” driven by institutions looking for digital asset investments with “predictable yields,” added Loktev.Magazine: Ripple says SEC lawsuit ‘over,’ Trump at DAS, and more: Hodler’s Digest, March 16 – 22

A whistleblower at Binance has revealed details of insider trading and front-running by an internal team member. We look at how the news could impact presales like the Best Wallet Token. Action Taken Against the Employee On further investigation by the Binance internal audit team, it was revealed the employee used information from his previous role at BNB Chain to benefit from a token generation event. Although the employee was working with the Binance wallet team, he had information about on-chain projects and the upcoming TGE event. Before the official token launch, the employee purchased many tokens through multiple wallets. After the announcement was made, he sold a part of the token to realize huge gains. It’s worth noting that a significant part of the tokens (with huge unrealized gains) are still held by the employee. Investigations found this to be a breach of company policy, as the employee used non-public information for personal financial profits. As expected, the employee was met with immediate suspension, with the finance team planning for further disciplinary action. The company also plans to bring legal action against the employee as per his jurisdiction. Binance Vows to Tighten Up Internal Controls After this incident, Binance has vowed to strengthen its internal controls and refine internal policies so that incidents like this can be avoided in the future. The official information note also stressed the company’s user-first principle and its commitment to upholding fairness, integrity, and transparency in its operations. Together, we can uphold a transparent, healthy blockchain ecosystem and build a safer, more trustworthy trading environment for all users – Binance To encourage whistleblowers, a reward of $100,000 will be distributed equally among four people who informed the audit team about the ongoing insider trading. Although reports were also publicly shared on X, rewards will only be distributed to those reports that were received through Binance’s official email. The Need for Security-First Projects like Best Wallet Token Incidents like this, as well as the Bybit hack, which saw over $1.5B worth of $ETH being stolen away from the exchange’s storage, remind us of the importance of making the blockchain ecosystem more secure, fair, and free from scams and rug pulls. Enter Best Wallet Token ($BEST). It’s the native cryptocurrency of the Best Wallet app, one of the best crypto wallets that has emerged as the go-to solution for privacy-conscious crypto users. Read on to find out why the Best Wallet Token is attracting huge investor bids and has raised more than $11M in its presale so far. Best Wallet – Easy-to-Use, Fully Self-Custodial Crypto Wallet Best Wallet is a non-custodial (or self-custodial) crypto wallet. This means it provides you complete control over your own private keys. Self-custody is your best bet if you want to reduce reliance (and therefore the probability of a mishap) on even the best crypto exchanges and wallets like Bybit and Binance. Having full authority over the private key would mean that no one other than you will be able to access your stored crypto in Best Wallet. Furthermore, Best Wallet is the among the first in the industry to employ Fireblock’s MPC-CMP wallet technology. It comes with state-of-the-art cryptographic techniques, which, combined with Best Wallet’s 2FA/biometrics login option, ensure the airtight privacy of your crypto assets. Another standout feature is that it provides you with foolproof crypto insurance. This will protect your assets against any hacks or phishing attacks. Aside from security, Best Wallet does well on the user-friendliness front as well. For instance, it’s the ONLY crypto wallet to offer early-bird access to new meme coins on presale. Essentially, while other wallets ask you to visit the token’s presale website and connect your wallet to purchase it, Best Wallet allows you to buy the best crypto presales directly from within the app. It’s also worth noting that the internal Best Wallet team vets every single crypto they offer on their platform. You can rest assured that you won’t fall prey to any rug pulls or scam tokens. What’s more, this also negates the possibility of you buying tokens from a legitimate-looking phishing website. Last but not least, Best Wallet supports most major blockchains, meaning you won’t have to look anywhere else to manage your crypto assets. Buy $BEST to Ride Best Wallet’s Growth Best Wallet is slated to capture over 40% of the non-custodial crypto wallet market by 2026. This isn’t just a pipe dream, by the way, as the app already boasts over 500K users. Buying Best Wallet Token puts you in a pole position to benefit from Best Wallet’s industry takeover and enjoy a set of unique holder benefits. $BEST token holders, for instance, pay lower fees when they buy, sell, or swap cryptos on Best Wallet. They’ll also be the first to be given access to all meme coin presales. This means they’ll have the opportunity to get in while high-potential tokens are at their lowest possible prices. As mentioned, $BEST is currently still in presale. One token will cost you just $0.024475 if you choose to buy $BEST within the next 8 hours. Beyond that, the price will see a slight increase as the presale enters its next stage. For more technical information about the project, check out $BEST’s whitepaper. Visit its X feed and join its Telegram channel for regular updates. Here’s a detailed guide on how to buy Best Wallet Token. Last Word on Smart Investing Crypto investments, however, are subject to market risks. While the best altcoins like $BEST can rocket to the moon, they can also fall flat (through no fault of their own, might we add) if the market doesn’t move favorably. We recommend that our readers only invest after doing their own research. It’s also advisable to jump in with only a small amount first and then scale in should you wish to. Lastly, keep in mind that none of the above is financial advice. If you’re looking for expert guidance, please consult a financial professional.

Olufemi Adewole, Executive Secretary of DAPPMAN, warns that Nigeria’s Naira-for-crude oil transaction framework could destabilize foreign exchange (FX), deter foreign direct investment (FDI), and worsen economic challenges. He highlights the volatility of the Naira and stresses that crude oil transactions traditionally rely on the U.S. dollar for stability and global acceptability. Adewole cautions that deviating […]

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Key takeawaysExit liquidity traps occur when new investors unknowingly provide liquidity for insiders to cash out, leaving them with devalued assets.​FOMO drives impulsive trades, often leading to costly mistakes and becoming exit liquidity for early movers.Beware of projects with exaggerated claims, low liquidity, anonymous teams or sudden price surges.Investing in high-market-cap coins, avoiding hype-driven projects and using reputable exchanges reduce the risk.Are you concerned about having bought a cryptocurrency only to later realize that your investment facilitated someone else’s profitable exit? This scenario is called an exit liquidity trap, a deceptive market dynamic where unsuspecting traders provide liquidity for insiders or seasoned investors to offload their holdings at inflated prices.By the time you recognize you have been trapped, the price crashes, leaving you with devalued tokens. But how do you spot these traps before it is too late? This guide breaks down exit liquidity traps, their warning signs and strategies to protect your crypto investments.What is exit liquidity?In traditional finance, the term refers to buyers who acquire shares from early investors or founders during liquidity events such as acquisitions, mergers or initial public offerings (IPOs). However, in the cryptocurrency market, it has taken on a more negative connotation.In the cryptocurrency market, exit liquidity refers to unsuspecting investors who purchase tokens with little or no real value, thereby providing liquidity to sellers aiming to offload their holdings.This situation often arises when traders buy digital assets that later become difficult to resell due to low demand or loss of value. Understanding exit liquidity is crucial for crypto traders to avoid being caught in schemes where their investments primarily benefit those looking to exit the market.The sheer number of tokens launched every month suggests the scale of exit liquidity traps crypto traders face. In early 2024, over 540,000 new crypto tokens were created, averaging approximately 5,300 new tokens launched daily.Did you know? In 2024, over 2 million tokens were launched. Of these, roughly 870,000 tokens, representing 42.35%, were available for trading on decentralized exchanges (DEXs).How can you end up becoming an exit liquidity for others’ profit?Unforeseen circumstances can sometimes turn your investments against you, making you an exit liquidity victim. Here are some common scenarios where this might happen:Pump-and-dump schemesPump-and-dump schemes happen when a group of individuals artificially inflates the price of a cryptocurrency by aggressively creating a buzz around it. New investors are drawn in as the price surges, believing they are riding a profitable opportunity. However, the manipulators dump their holdings, causing a sharp crash in cryptocurrency, primarily memecoins. Those who bought late end up with significant losses and illiquid assets. Project failures and scandalsA major security breach, financial mismanagement or controversy involving a crypto project can lead to a rapid decline in its token value. When panic selling begins, investors who exit early minimize their losses, while those who hold on too long become exit liquidity victims as the price crashes. Regulatory crackdownsGovernment actions against specific cryptocurrencies can suddenly shift market dynamics. If a cryptocurrency is declared illegal or subjected to strict regulations, its trading volume and liquidity can collapse, leaving investors struggling to sell.Exchange delistingsWhen a cryptocurrency is removed from major exchanges, its liquidity can dry up quickly. Finding buyers for the token becomes increasingly difficult without access to a large trading platform. Novice investors may become an exit liquidity medium for those offloading their holdings ahead of the delisting. Market manipulationCertain deceptive trading practices, such as wash trading or spoofing, can mislead investors into believing there is a strong demand for cryptocurrency. Manipulators create an illusion of price growth, encouraging new investors to buy in. Once the price reaches their target, they sell their holdings, leaving others with depreciating assets.ICOs and token sale fraudsSome initial coin offerings (ICOs) and token sales are designed to deceive investors. Project founders may sell large amounts of tokens under the promise of delivering a groundbreaking project but later abandon it or fail to fulfill commitments, leading to a steep decline in token value.Did you know? As per Chainalysis, the number of tokens launched in 2024 was 2,063,519. Among these, the number of suspected pump-and-dump tokens was 74,037.FOMO — The core reason for exit liquidity trapsFOMO, or fear of missing out, is a key factor behind crypto traders becoming exit liquidity victims. It is an emotional reaction where traders rush into perceived market opportunities, fearing they will miss potential gains. This leads to trades executed without thorough analysis, increasing the risk of losses.Trend-chasing: FOMO-driven traders enter positions based on hype rather than fundamentals, making them vulnerable to market downturns.Neglect of risk management: These traders frequently neglect risk management strategies like diversification or stop-loss orders. This leaves them exposed to sudden price drops.Focus on short-term gains: FOMO-driven traders prioritize short-term gains over sustainable investment strategies, leading to frequent, costly trades that erode overall returns. Impulsive decision-making: The traders’ heavy reliance on social media, news and peer influence further drives poor decision-making, as they react to market hype instead of conducting independent research.Factors behind FOMOSeveral factors trigger FOMO in crypto trading: Market rallies: Sharp price surges create a sense of urgency. Traders rush to buy assets without analyzing fundamentals, fearing they will miss out on quick profits. Social media hype: Social media influencers and online communities often create hype, leading traders into making risky, emotionally driven decisions. Peer pressure: Peer pressure is another factor, as seeing friends or colleagues profit from trades can push individuals to follow suit. Chasing trends: The tendency to chase trends pushes traders to neglect personal financial strategies. The fear of missed profits drives impulsive trades, which drives the trend. Regret: Watching asset prices rise creates regret in traders if they don’t hold the cryptocurrency themselves, prompting traders to act without proper analysis.News-induced anxiety: Overexposure to market news produces anxiety. Constant updates and financial reports create a sense of urgency, prompting traders to react hastily rather than sticking to a well-thought-out plan. Did you know? According to Glosten et al.’s (1993) GJR-GARCH model, neither Baur and Dimpfl (2018) nor Cheikh et al. (2020) found the FOMO effect for Bitcoin or Ether during 2013–2018. But Wang et al. (2021) discovered a FOMO effect in the Bitcoin market between 2014 and 2019.How to detect exit liquidity traps in cryptoDetecting exit liquidity traps requires diligent analysis on your part. Consider the project’s development activity, the team behind it and community engagement. Here are the red flags to spot potential exit liquidity traps:Coins without solid fundamentals and exaggerated claimsSteer clear of projects that artificially inflate the price of a coin, luring in unsuspecting investors before insiders dump their holdings for profit. Known as pump-and-dump scams, these often involve exaggerated claims, assured returns and aggressive marketing. Examine if the project has a lopsided token distribution — a high concentration of tokens among a few wallets signals manipulation.Bundled buys and developer activityBundled transactions can be used to manipulate token distributions, making a project seem more legitimate than it is. Developers may execute multiple transactions immediately after liquidity is added, securing tokens at the lowest price and later selling at a premium. For example, to identify bundled buys on Solana, use GeckoTerminal. When you search for your desired token, the right sidebar displays its GT Score. The Soul Scanner section enables you to view the “Bundled Buy %,” which reveals the number of tokens acquired through bundled buys tactics. This metric provides insight into the bulk buying activity of a specific token.Over-hyped coinsAggressively promoted coins with weak fundamentals and a low number of use cases are likely to crash eventually. Such coins often experience short-term price surges driven by influencers. Developers who actively create the buzz around these coins, allocate tokens to themselves and dump their holdings after prices shoot up. Launched in 2016, Bitconnect was marketed as a high-yield investment platform, promising substantial returns through a proprietary trading algorithm. Its multilevel marketing structure and unrealistic returns led to suspicions of it being a Ponzi scheme. In January 2018, Bitconnect abruptly shut down its lending and exchange services, causing the token’s price to plummet from an all-time high of nearly $525 to below $1, resulting in significant investor losses.Invisible teamCryptocurrency projects lacking identifiable team members present significant risks. The inability to verify developer identities prevents accountability. This anonymity enables developers to disappear with invested capital. The absence of transparency creates problems in evaluating a project’s legitimacy and progress. Moreover, the lack of visible leadership undermines trust, which is essential for any successful enterprise. Regulatory issuesIf a project faces regulatory issues regarding compliance or money laundering, consider it a red flag. Additionally, legal frameworks vary across jurisdictions, adding complexity and potential risks. Noncompliance could lead to hefty penalties or even the project’s shutdown.How to avoid exit liquidity traps in cryptoIf you are a crypto investor, you must understand how to avoid exit liquidity traps. Thankfully, there are strategies to help you avoid this situation and protect your investments. Here is a breakdown of such methods: Invest in coins with high market capitalization: Coins with high market capitalization are typically more stable and liquid. These assets attract a large number of buyers and sellers, making it easier to enter and exit positions without major price fluctuations. Low-cap coins, on the other hand, can be highly volatile and often lack sufficient liquidity, increasing the risk of being stuck with unsellable assets. Always check a coin’s market cap and trading volume before investing. Choose coins with active trading communities: A strong, engaged trading community is a key indicator of a coin’s liquidity. Coins with active investors and consistent trading activity tend to have stabler demand, reducing the risk of getting trapped in an illiquid market. Look for projects with active discussions on social media, consistent developer updates and healthy buy-sell activity on exchanges. Avoid pump-and-dump scams: Be cautious of coins that gain sudden attention without any solid fundamentals. Conduct thorough research and avoid assets that appear too good to be true. You should consider vesting periods. Sudden developer sell-offs can crash prices and leave investors with worthless assets. Use reputable exchanges: Trading on well-established exchanges like Binance and Coinbase ensures better liquidity and smoother transactions. Trustworthy platforms do their due diligence before listing projects so you can feel safer with the coins on offer. While regulatory hurdles — such as the removal of Tether’s USDt (USDT) in the European Union — or unforeseen events like the Terra ecosystem collapse in May 2022 can lead to delistings, reputable exchanges typically do not remove coins without significant reasons.Focus on the coin’s long-term viability: If you feel a coin is overly promoted, especially in the memecoin space, take it as a warning sign. Instead of following social media trends, focus on a coin’s fundamentals and community strength. Your goal should be the long-term viability of the coin and not a short-term gain.Stay informed about changing regulations: Staying informed about evolving cryptocurrency regulations is crucial for investors. Legal frameworks significantly impact market dynamics, asset valuation and investment strategies. Changes can introduce new compliance requirements, tax implications or even outright bans, affecting the stability of your portfolio.Fundamental analysis of cryptocurrencies: A robust tool to deal with exit liquidity traps Fundamental analysis is a crucial tool for investors looking to avoid exit liquidity traps. Unlike traditional assets such as stocks, cryptocurrencies lack standard valuation metrics like price-to-book ratios. But assessing a crypto asset’s actual value beyond its price movements can help identify solid investments and reduce liquidity risks. When evaluating a cryptocurrency, one of the key questions is: Will businesses adopt it? While individual and institutional investors may drive demand by holding assets, long-term value is best determined by utility rather than scarcity alone. A cryptocurrency with real-world applications and industry adoption is more likely to sustain liquidity over time. For instance, Ethereum introduced smart contract functionality, enabling decentralized applications (DApps). Despite its technological significance, issues like network congestion and high fees limited its public adoption. This highlights the importance of evaluating both innovation and practical usability when conducting fundamental analysis. Other factors to consider include developer activity, transaction volume and network security. A strong development team, consistent upgrades and a growing user base signal a cryptocurrency’s potential for long-term viability. By focusing on these elements, investors can make informed decisions, reducing the chances of being trapped in illiquid assets.Leveraging behavioral finance to avoid exit liquidity traps“The investor’s chief problem — and even his worst enemy — is likely to be himself.” — Benjamin GrahamAs Graham insightfully points out, investors often become their own worst enemy, making decisions driven by emotion rather than logic. To avoid exit liquidity traps, you need as much knowledge of behavioral finance as you do about crypto trading fundamentals. Understanding how human behavior influences financial decisions can help you recognize and mitigate irrational choices. Humans are not always rational in our decision-making — emotions such as greed, fear and hope, along with cognitive biases, often drive trading behavior. Recognizing these psychological tendencies is crucial to making informed, objective investment decisions.While honing hard skills like financial analysis and conducting due diligence on project teams is essential, it is equally important to develop behavioral skills. Practicing patience, managing FOMO and making balanced decisions can help you avoid impulsive trades and minimize risks in volatile markets.

Solana (SOL) is showing early signs of recovery after enduring several days of selling pressure and heightened volatility. The altcoin is now trading above the $135 mark, a psychological level that bulls have managed to defend in recent sessions. While this move offers some relief to investors, Solana still has work to do before confirming a sustained uptrend. The broader market remains cautious, and SOL must reclaim key technical levels to strengthen the case for a full recovery rally. Related Reading: Ethereum Accumulation Is Almost Over – Breakout Above $2,200 Could Trigger Expansion Phase Adding to the optimism, top analyst Big Cheds highlighted a notable technical signal: Solana has tagged the upper Bollinger Band (BB) on the daily chart for the first time since it traded in the $270 range. This rare occurrence suggests that momentum is slowly shifting in favor of the bulls, though confirmation is still pending. The upper BB tag is often seen as an early indicator of building strength, especially when supported by increasing volume and follow-through in price action. For now, investors are watching closely to see if Solana can hold above $135 and push toward resistance levels that could confirm a trend reversal. Until then, the recovery remains tentative — but the signal from Big Cheds adds an encouraging twist. Solana Struggles Below $150 Solana (SOL) is now at a critical junction as it pushes to set new local highs just below the $150 level. While this upward move has brought temporary relief, analysts warn that the latest price surge could be nothing more than a bull trap. Related Reading: Dogecoin Breaks Above Bullish Daily Pattern – Analyst Sees A Surge To $0.43 Many are calling for a continuation of the broader downtrend, citing weak market sentiment and the possibility of deeper corrections across altcoins. The fear of an incoming bear market is growing among investors, with some choosing to exit positions, while others hold through unrealized losses in hopes of a future recovery. Ched’s analysis highlights that Solana has tagged the upper Bollinger Band on the daily chart — a signal not seen since the $270 range. This technical indicator could suggest that bullish momentum is building, possibly marking the start of a recovery rally. While confirmation is still needed, the tag hints at a shift in sentiment as bulls try to regain control. Currently, Solana remains 51% down from its January all-time high, highlighting the steep correction it has suffered in just a few months. Speculation, increased volatility, and heavy sell pressure have defined recent price action, leaving traders unsure about the next direction. However, a key technical development could shift the narrative. Price Action Details: Key Resistance Looms Solana (SOL) is currently trading at $144, with bulls facing strong resistance at the critical $150 level. Despite recent attempts to push higher, momentum remains weak, and buyers have yet to establish a clear breakout. The $150 mark is proving to be a psychological barrier, and failure to break through could signal more downside in the short term. However, the more decisive level to reclaim lies between $170 and $180 — a zone that has consistently acted as strong resistance during past rallies. For a true recovery to take shape, SOL must gain traction above this range and turn it into support. Until that happens, the risk of further downside remains elevated. Related Reading: Ondo Finance Eyes Breakout As Price Tests $0.89 Channel Resistance – Analyst If SOL continues to face rejection at $150 in the coming days, a drop below $135 becomes increasingly likely. This would reinforce bearish sentiment and potentially open the door to lower support levels, especially if broader market weakness persists. With price action stuck between key levels and uncertainty still dominating the market, Solana’s next move could set the tone for the weeks ahead. Bulls must act quickly to reclaim critical ground before selling pressure returns in force. Featured image from Dall-E, chart from TradingView 

Bitcoin (BTC) saw the return of US selling pressure at the March 26 Wall Street open as analysis eyed a “key shift in market structure.”BTC/USD 1-hour chart. Source: Cointelegraph/TradingViewBitcoin sees classic US dip as dollar gainsData from Cointelegraph Markets Pro and TradingView showed BTC/USD heading below $87,000.The pair had enjoyed support through the day’s Asia trading session, but the start of US hours triggered a familiar downward reversal.Bitcoin copied US stocks’ lack of momentum, with the S&P 500 and Nasdaq Composite Index both heading lower at the open.The US dollar index (DXY), traditionally inversely correlated with BTC/USD, conversely nudged three-week highs of 104.46.US dollar index (DXY) 4-hour chart. Source: Cointelegraph/TradingViewCommenting on the current risk-asset landscape, trading firm QCP Capital retained emphasis on US President Donald Trump’s trade tariffs ahead of a fresh round of measures due to go live on April 2.“Uncertainty surrounding U.S. trade policy and the broader political landscape remains front of mind. Trump has teased further tariff measures ahead of the April 2nd deadline,” it wrote in its latest bulletin to Telegram channel subscribers. “However, the market still lacks clarity on the scope, timing and magnitude of these potential actions. Until then, we expect more sideways volatility.”QCP nonetheless suggested that Bitcoin could still “outperform tactically in the near term,” citing the decision by video game retailer GameStop to add BTC to its corporate treasury.“While this is not a first in the corporate adoption story, the symbolic weight of GME’s meme status could rekindle speculative fervour among retail participants,” it argued. “As the 2021 playbook reminds us, retail flows, if coordinated, have the power to challenge institutional positioning.”Daily chart breakout joins bullish BTC price hintsContinuing the positive theme, popular trader Titan of Crypto had good news for those following the daily BTC price chart.Related: RSI breaks 4-month downtrend: 5 things to know in Bitcoin this weekAfter three months, he revealed to X followers on the day that Bitcoin had escaped a downtrend, marking the latest in a series of recent reversal cues.“BTC has just broken out of a 3-month descending channel, signaling a key shift in market structure,” he summarized alongside an explanatory chart.BTC/USDT 1-day chart. Source: Titan of Crypto/XAs Cointelegraph reported, two key leading Bitcoin price indicators, the relative strength index (RSI) and the Hash Ribbon metric are both giving preemptive upside signals this week.BTC/USD 1-day chart with RSI data. Source: Cointelegraph/TradingViewThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin ETFs recorded an eighth consecutive day of inflows totaling $27 million, led by Blackrock’s IBIT, while ether ETFs resumed outflows, losing $3 million. Bitcoin ETFs Achieve Eighth Consecutive Day of Inflows With $27 Million Addition Investor enthusiasm for bitcoin ETFs remained strong on Tuesday, March 25, with an additional funds inflow of $26.83 million, […]