Bitcoin’s fate hangs on FOMC decision

March 18, 2025

Reading time: 5 minutes

Cronos set for massive token inflation after controversial governance vote

Key points:

  • Cronos supply to expand: A last-minute governance vote flipped the decision, increasing CRO’s total supply from 30 billion to 100 billion over a 10-year vesting period.

  • Crypto.com’s influence: Large token holders, including Crypto.com’s own validators, tipped the scales in favor of the proposal, leading to accusations of governance manipulation.

  • Market backlash: The CRO token price dropped over 8.5% following the announcement, as community trust in Cronos' decentralized governance eroded.

News - The Cronos blockchain is set for a 200% increase in its token supply after a contentious governance vote saw a last-minute reversal in favor of the proposal. The decision will see CRO’s total supply grow from 30 billion to 100 billion over the next decade, a move that has sparked backlash from community members who argue the process was manipulated by large stakeholders.

The last-minute vote flip - For most of the voting period from March 2-16, the proposal to re-mint 70 billion CRO appeared to be heading for rejection. Initially, 86% of voters opposed the plan, citing concerns over inflation and centralization. However, just hours before the vote closed, a sudden influx of 3.35 billion CRO votes tipped the balance in favor of the proposal. The final tally stood at 61.18% in favor, 17.61% against, and 20.11% abstaining.

Crypto.com’s influence in the vote was evident, as several of its own validators—Electron, Antares, and Minotaur IV—joined two existing validators, Starship and Falcon Heavy, in supporting the proposal. Given that Crypto.com controls between 70-80% of the voting power on the Cronos network, the late-stage vote dump effectively ensured the proposal’s passage, reinforcing criticisms of governance centralization.

Why reissue 70 billion CRO? - The proposal sought to reverse a 2021 token burn that permanently removed 70 billion CRO from circulation. Crypto.com positioned the move as a strategic reserve initiative aimed at boosting Cronos’ ecosystem, supporting AI-driven applications, and potentially launching a CRO exchange-traded fund (ETF). The reissued supply will vest over five years and be placed in an escrow-controlled wallet.

Critics, however, see this as a betrayal of trust. Many believe that Crypto.com’s control over the governance process undermines the decentralized nature of the network and could set a dangerous precedent for future blockchain governance decisions.

Market reaction and community fallout - In the immediate aftermath of the vote, CRO’s price tumbled over 8.5%, reflecting investor skepticism over the decision. Additionally, Crypto.com attempted to soften the backlash by announcing a 50 million CRO burn proposal—just 0.07% of the newly minted supply—on the same day the vote concluded. This move was widely ridiculed as a token gesture, with one validator calling it “a spit in all CRO holders’ faces.”

As the Cronos blockchain prepares for a major network upgrade following the vote, the long-term impact on its credibility and investor confidence remains uncertain. While Crypto.com argues the move is essential for growth, community members fear that the decision has irreparably damaged trust in the network’s governance.

With the re-minting set to roll out in the coming years, all eyes will be on whether Cronos can deliver the promised ecosystem growth—or if this controversial decision will lead to further disillusionment among its user base.

Bitcoin faces FOMC showdown: Crash or rally ahead?

Key points:

  • Bitcoin struggles to break $85K resistance ahead of the Federal Reserve's interest rate decision, with key support levels at $74K and $70K.

  • ETF inflows and whale accumulation signal bullish confidence, but macroeconomic uncertainty keeps BTC in a volatile trading range.

News - Bitcoin has remained stuck below the $85,000 mark, facing repeated rejections at this resistance level as traders await the Federal Open Market Committee’s (FOMC) interest rate decision on March 19. The flagship cryptocurrency has been in a holding pattern, with price movements characterized by uncertainty and conflicting market sentiment.

While Bitcoin saw a modest rebound from its March 10 low of $78,620 to around $83,000, trading volume has significantly dropped. Only $22 billion worth of Bitcoin changed hands in the past 24 hours, a sharp decline from the $49 billion seen a week prior.

Adding to market tensions, spot Bitcoin ETFs saw $274 million in inflows on March 17, the highest since early February. Despite this, Bitcoin remains vulnerable to macroeconomic developments, including the Federal Reserve’s stance on interest rates.

FOMC: The make-or-break event? - According to CME’s FedWatch Tool, there is a 99% probability that the Fed will keep rates steady between 4.25% and 4.50%. While some market participants hope for a rate cut later in the year, Fed Chair Jerome Powell’s speech will be the real driver of Bitcoin’s next move.

Analysts expect Powell to maintain a hawkish tone, citing persistent inflation (CPI at 2.8%) and strong GDP growth (2.3% in Q4 2024). If he hints at rate cuts in the coming months, risk assets like Bitcoin could see renewed bullish momentum.

Key BTC levels to watch - Bitcoin must flip $85,000 into support to target a rally toward $90,000. To achieve this, BTC must reclaim its 200-day exponential moving average (EMA), which it lost on March 9.

However, if BTC fails to break above resistance, downside risks remain. The immediate support levels lie at $78,000 and $74,000, the latter being the previous all-time high from early 2024. If bearish momentum intensifies, Bitcoin could test $70,530-$66,810, erasing the gains from the “Trump pump.”

Popular analysts like SuperBitcoinBro believe BTC’s worst-case scenario involves a pullback to $71,300-$73,800, while others suggest BTC must reclaim $86,250 for bullish confirmation.

Whales accumulate despite uncertainty - On-chain data reveals that Bitcoin whales have acquired over 1 million BTC since November 2024, with 200,000 added this month alone. This signals long-term confidence despite the recent price slump.

Meanwhile, Bitcoin futures open interest has dropped 30% since its January peak of $69 billion, reflecting growing uncertainty in the derivatives market.

What’s next? - Bitcoin is currently at a crossroads, awaiting macroeconomic cues from the FOMC. If Powell signals rate cuts later this year, BTC could reclaim $85,000 and push higher. However, if a hawkish stance prevails, BTC might slip back toward $77,000-$74,000.

With ETF inflows rebounding and whale accumulation growing, Bitcoin’s long-term trajectory remains bullish—but in the short term, all eyes are on the Fed.

MicroStrategy’s bold move: $500M stock sale to buy more Bitcoin

Key points:

  • MicroStrategy (MSTR) plans to issue 5 million shares of Series A Perpetual Strife Preferred Stock (STRF) to raise $500 million for Bitcoin purchases.

  • Despite recent skepticism about Bitcoin’s bull cycle, MicroStrategy continues accumulating BTC, nearing a historic 500,000 BTC milestone.

News - MicroStrategy, the world’s largest corporate holder of Bitcoin, has unveiled a new strategy to raise $500 million through the issuance of 5 million shares of its Strife (STRF) Series A Perpetual Preferred Stock. The funds will be used for Bitcoin acquisitions and general corporate purposes, according to a recent SEC filing.

STRF offers a fixed 10% annual dividend, an increase from the 8% on MicroStrategy’s earlier preferred stock issuance. If dividends go unpaid, they will compound at an additional 1% per year, up to a maximum of 18%. The company also has the right to redeem the shares under certain conditions, while investors can demand a buyback in case of a fundamental change.

The offering will be listed on Nasdaq within 30 days and managed by Morgan Stanley, Barclays, Citigroup, and Moelis & Company.

MicroStrategy nears 500,000 BTC milestone - Despite a sluggish market, MicroStrategy continues adding to its Bitcoin treasury, recently acquiring 130 BTC for $10.7 million. This marked its smallest Bitcoin purchase since 2020, amid a broader market downturn.

Currently, MicroStrategy holds 499,226 BTC, worth approximately $41.1 billion, with an average purchase price of $66,360 per BTC. If the company acquires just 774 more BTC, it will cross the historic 500,000 BTC threshold, owning approximately 2.38% of Bitcoin’s total supply.

Bullish double bottom pattern forms on MicroStrategy stock - While Bitcoin's price action has been uncertain, MicroStrategy’s stock (MSTR) is showing signs of a bullish double bottom pattern, a technical signal that suggests a potential price breakout.

The stock recently formed two consecutive troughs at $230, with a neckline resistance of $320.94. A breakout above this level could push MSTR to $410, marking a potential return to bullish momentum.

Interestingly, this pattern is the inverse of Bitcoin’s recent double top, which signaled a price decline earlier this year. Given MicroStrategy’s deep ties to Bitcoin, the correlation between these patterns remains a key factor to watch.

What’s next? - MicroStrategy’s latest stock sale for Bitcoin comes amid growing debate over the Bitcoin bull cycle’s sustainability. While some analysts argue the market is entering a cooling phase, CEO Michael Saylor remains committed to doubling down on BTC accumulation.

With 500,000 BTC within reach, all eyes are on MicroStrategy as it continues to redefine corporate Bitcoin investment strategies.

Xapo Bank launches $1M Bitcoin-backed loans for hodlers

Key points:

  • Xapo Bank is offering Bitcoin-backed loans up to $1 million, targeting long-term BTC holders seeking liquidity without selling.

  • The loans feature a conservative 20%-40% loan-to-value ratio, ensuring borrower protection, and have no early repayment penalties.

News - Crypto-friendly bank Xapo has introduced Bitcoin-backed loans, allowing users to borrow up to $1 million in cash without liquidating their BTC holdings. The initiative is aimed at long-term Bitcoin investors, offering them a way to leverage their BTC for major expenses such as property upgrades, car purchases, and other financial needs.

Unlike risky margin-based lending seen on exchanges, Xapo’s product focuses on wealth management and asset protection. The loan-to-value (LTV) ratio ranges from 20%-40%, meaning a borrower must provide at least $5 million in Bitcoin collateral to access the full $1 million loan.

Repayment terms are flexible, with options of 30, 90, 180, or 365 days, and borrowers face no penalties for early repayment. A loan health tracker provides real-time risk monitoring, alerting customers if additional collateral is needed.

A safer approach to crypto lending? - Xapo CEO Seamus Rocca highlighted that, unlike exchanges offering leveraged lending for speculative trading, Xapo’s Bitcoin-backed loans are designed for financial flexibility rather than high-risk investments.

“If an exchange is offering secured lending, it’s to encourage leverage,” Rocca stated. Also adding that “the risk of losing money is very high.”

Xapo has also ensured that Bitcoin collateral remains secure throughout the loan period. Unlike some failed lending platforms like Celsius and BlockFi, which rehypothecated (reused) customer assets, Xapo stores collateral in a BTC vault with institutional-grade custody.

Bitcoin lending makes a comeback - Xapo’s move comes amid a revival in crypto lending, following the collapse of major lenders in 2022. Other firms, including Coinbase, have also reintroduced BTC-backed loans, signaling renewed interest in the sector.

Additionally, Xapo’s expansion aligns with broader trends in institutional crypto lending. Bitwise and Maple Finance have been tapping into decentralized finance (DeFi) lending protocols, showing that demand for Bitcoin-backed financing is growing once again.

What’s next? - With high-net-worth Bitcoin investors and institutions seeking liquidity options, Xapo’s regulated, risk-managed approach to BTC-backed lending could help rebuild trust in crypto lending.

As the crypto market matures, the ability to access cash without selling BTC—while avoiding the pitfalls of past lending failures—could prove game-changing for Bitcoin holders worldwide.

Interesting facts

  • Since the introduction of EIP-1559, Ethereum has burned over 4 million ETH, reducing its total supply. As of 2025, Ethereum is one of the first major deflationary blockchains, with more ETH being burned than issued.

  • In Texas and other energy hubs, Bitcoin miners join demand response programs, pausing operations during peak demand to free up electricity. Some also repurpose flare gas from oil drilling, turning waste into mining power while reducing emissions.

  • High-end fashion brands, including Louis Vuitton and Prada, are now embedding blockchain-based digital certificates (NFTs) in their products. These NFTs serve as proof of authenticity, preventing counterfeits in the luxury market.

Top 3 coins of the day

Tron (TRX)

Key points:

  • At press time, TRX was trading at $0.22, reflecting a 1.90% increase over the last 24 hours.

  • The Chaikin Money Flow (CMF) turned positive, suggesting growing buying pressure, but the 9-day SMA remained above the price, signaling potential resistance.

What you should know:

Tron’s price saw a modest uptick, possibly influenced by market sentiment surrounding Justin Sun’s cryptic social media post and recent reports of a potential integration with Solana. Despite this, the broader trend remained neutral, with TRX oscillating within a narrow range for the past few weeks. The 9-day Simple Moving Average (SMA) acted as resistance, preventing a strong breakout. Meanwhile, the CMF indicator turning positive suggested an increase in capital inflow, hinting at renewed investor interest. However, trading volume remained relatively low, indicating that the rally lacked strong momentum. For TRX to sustain its upward movement, it needs to break above the $0.23 resistance level. Conversely, support rests near $0.21, and a breakdown below this level could push the price lower. Traders should watch for any official announcements from the Tron ecosystem, as they could drive volatility in the short term.

Cosmos (ATOM)

Key points:

  • At press time, ATOM was trading at $4.76, reflecting a 2.78% increase over the last 24 hours.

  • Technical indicators signaled bullish momentum, with the Parabolic SAR flipping below the candlesticks and the RSI nearing overbought levels.

What you should know:

ATOM maintained its upward trend, aligning with technical indicators that pointed to further gains. The Parabolic SAR flipped below the candlesticks, confirming bullish control, while the RSI hovered around 56.8, suggesting increasing buying pressure. Volume remained stable, indicating sustained interest from traders. If ATOM continues its ascent, the next resistance level to watch would be $5.20, with immediate support resting near $4.50. A break above resistance could reinforce further upside potential, while failure to hold current levels might trigger a retracement. Market participants should monitor broader market trends and liquidity inflows to gauge the sustainability of this upward movement.

Cronos (CRO)

Key points:

  • At press time, CRO was trading at $0.079, reflecting a 7.07% decline over the last 24 hours.

  • The Parabolic SAR remained above the candlesticks, signaling bearish sentiment, while the MACD hovered near the zero line, hinting at weak momentum.

What you should know:

Cronos continued to face selling pressure after a controversial governance vote approved the minting of 70 billion new CRO tokens. The move sparked backlash from the community, raising concerns about inflationary risks and potential dilution of value. Market sentiment appeared to react negatively to this decision, with CRO experiencing a notable decline. Despite slight attempts at recovery, the Parabolic SAR maintained its bearish stance, while the MACD signaled a lack of strong upward momentum. Immediate support lays near $0.075, and if selling pressure persists, a further drop toward $0.070 could be expected. On the upside, resistance remains at $0.085, and a breakout above this level might help restore bullish confidence. Investors should monitor developments surrounding Crypto.com’s governance decisions, as further reactions to the minting proposal could impact price action.

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