March has been a turbulent month for the crypto industry. Bitcoin (BTC) recorded its highest weekly close in 10 months and raised hopes among many that the bear market is over. One of the key drivers of this expectation was a series of banking collapses in the United States. This made investors hope for falling interest rates later this year, despite Federal Reserve Chair Jerome Powell’s insistence that lower rates were not part of the base scenario for 2023.
However, optimism about the macro environment risks being offset by the regulatory crackdown on the industry in the United States. This mixed environment is markedly different from the typical bull and bear market action that the crypto industry is used to and affects its various areas in different ways.