In the Market's Grip: Crypto Volatility Surges, But Strong Recovery Follows

On March 21, 2024, the crypto market experienced significant volatility with bitcoin (BTC) and ether (ETH) initially plummeting, then rebounding to trade as much as 15% higher than their Wednesday lows. Both BTC and ETH saw increases of up to 11% within the past 24 hours, leading gains among major tokens. Other cryptocurrencies such as Solana's SOL, Cardano's ADA, and BNB Chain's BNB also surged by as much as 8%, according to CoinGecko data. The broader crypto market, as measured by the CoinDesk 20 Index, was up by 7.62%. Tokens of layer-2 platforms, along with meme coins, showed significant gains, with an average jump of 25% and 16% respectively in the past 24 hours, according to CoinGecko data. Additionally, BlackRock (BLK) unveiled its tokenized asset fund, the BlackRock USD Institutional Digital Liquidity Fund, on the Ethereum network, represented by the BUIDL token. The fund, backed by cash, U.S. Treasury bills, and repurchase agreements, will provide yield paid out via blockchain rails daily to token holders. Securitize, BNY Mellon, and other prominent entities are involved in facilitating this venture. Furthermore, Kraken announced a qualified custody service for institutional clients in Wyoming, leveraging its SPDI charter obtained in 2020, showcasing the region's regulatory efforts to foster crypto adoption.