Huobi Bi-Weekly Bitcoin Market Report Part 1/2（Mar.2023）

1.Bitcoin’s price collapsed in the first half of March after intense distribution throughout Feb, triggered by bad news catalysts: Silvergate Capital and Silicon Valley Bank closing down, but quickly bounced back from its Realized Price. The recent bounce factors:

• Market anticipated Fed pausing rate hikes to ease economic conditions and started to reprice to an eased economic condition.
• CZ announced to convert the $1B BUSD Industry Recovery Funds to native cryptos including BTC, ETH and BNB, triggering FOMO and retail demand.
• Huge Short squeeze after bad news
• A spike in Inverted RRP showing a short period of boosted risk appetite

2. We expect Bitcoin’s price to consolidate for a week until FOMC interest rate decision clears the path for the real move. Meanwhile, there are initial signs of re-distribution:

• Spot CVD divergence indicates continuous supply dominance
• A significant inflow of BTC into exchanges (supply)
• SSR flashed a sell signal (3 times since Feb)

3. When the macro trend is not trending (no doubt BTC trading sideways $15k — $26k since Sep 2022) and total stablecoins outflow continues, we expect price to reach for internal liquidity.

For the full version of the report, please view and download it from this link here.

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Huobi Blockchain Application Research Institute (referred to as “Huobi Research Institute”) was established in April 2016. Since March 2018, it has been committed to comprehensively expanding the research and exploration of various fields of blockchain. As the research object, the research goal is to accelerate the research and development of blockchain technology, promote the application of the blockchain industry, and promote the ecological optimization of the blockchain industry. The main research content includes industry trends, technology paths, application innovations in the blockchain field, Model exploration, etc. Based on the principles of public welfare, rigor and innovation, Huobi Research Institute will carry out extensive and in-depth cooperation with governments, enterprises, universities and other institutions through various forms to build a research platform covering the complete industrial chain of the blockchain. Industry professionals provide a solid theoretical basis and trend judgments to promote the healthy and sustainable development of the entire blockchain industry.