3.20 AI Daily Report Crypto Assets Market Rebound Federal Reserve Maintains Interest Rate Unchanged

1. Headlines

1. The Federal Reserve keeps interest rates unchanged, and Powell mentions the impact of tariffs on the economy for the first time.

The Federal Reserve decided to keep the federal funds rate unchanged in the target range of 4.25% to 4.5% at its March interest rate decision meeting. After the meeting, Federal Reserve Chairman Jerome Powell publicly stated for the first time that the tariff policies implemented by the Trump administration are affecting the economy and may push up inflation levels.

Powell pointed out that although the overall US economy remains strong, recent weeks have shown a decline in consumer confidence and spending. He stated that the Federal Reserve needs to assess a series of policy changes under the Trump administration in areas such as trade, immigration, spending, and taxation, as these changes could reshape the economic outlook.

Powell emphasized that the Federal Reserve will closely monitor the impact of tariff policies on the economy. Analysts believe that Powell's remarks send a cautious signal, suggesting that the Federal Reserve may lower interest rates in the future to address the risks of economic slowdown and rising inflation. However, Powell did not provide clear guidance on the timeline and magnitude of any potential rate cuts.

The dot plot from this meeting shows that most officials expect two rate cuts in 2025. However, Powell stated that the Federal Reserve will make adjustments based on changes in economic data. Market participants generally expect that if the economy continues to weaken, the Federal Reserve may begin a rate-cutting cycle later this year.

2. Ripple wins the lawsuit, CEO: SEC will abandon the appeal, XRP price surges.

In a long-standing legal dispute with the U.S. Securities and Exchange Commission ( SEC ), cryptocurrency company Ripple has achieved a significant victory. Ripple's CEO Brad Garlinghouse announced that the SEC will drop its lawsuit against Ripple and will no longer appeal.

After the announcement of this news, the price of XRP surged nearly 10% within 24 hours, briefly breaking the $2.5 barrier. Analysts believe that the SEC's decision marks a significant clearing of obstacles for the development of this cryptocurrency in the United States, allowing XRP to shed its "security" regulatory status.

Garlinghouse stated in a statement that the SEC's decision is a "significant victory" not only for Ripple but also sets an important precedent for the entire cryptocurrency industry. He noted that the SEC has viewed XRP as an "unregistered security" for many years, but the court ultimately dismissed this allegation.

The lawsuit began in December 2020, when the SEC accused Ripple of raising over $1.4 billion through the sale of XRP without adequately disclosing relevant information to investors. Ripple has consistently denied any wrongdoing and views the case as a test for the entire cryptocurrency industry.

Analysts believe that the SEC's decision may encourage more institutional investors to enter the XRP market, while also setting a favorable regulatory precedent for other cryptocurrency projects. However, some lawyers warn that the SEC may seek to amend relevant regulations in the future to strengthen oversight of cryptocurrencies.

3. Circle has newly minted 250 million USDC on the Solana chain, laying out a cross-chain ecosystem.

The well-known stablecoin issuer Circle announced that it has newly minted approximately $250 million worth of USDC on the Solana blockchain. This move is seen as an important step for Circle to further expand its cross-chain ecosystem.

Circle stated that the issuance of USDC on the Solana chain is to meet the growing cross-chain demand. USDC is now available on multiple public chains including Ethereum, Algorand, Stellar, TRON, Avalanche, and Hedera Hashgraph.

Analysts point out that Circle's move reflects its confidence in the Solana ecosystem. Solana has seen rapid growth over the past year due to its high throughput and low transaction fees, attracting a large number of DeFi, NFT, and GameFi projects.

Industry insiders believe that the launch of USDC on the Solana chain will further promote the development of the Solana ecosystem and provide liquidity support for more projects. At the same time, this will also accelerate the circulation of USDC across different chains, facilitating the efficient flow of funds in the cross-chain ecosystem.

However, some analysts have warned that as USDC is issued on more public chains, Circle needs to strengthen auditing and regulation to ensure the transparency and security of the stablecoin. In addition, how the issuance of USDC on the Solana chain is adjusted will also affect its role in that ecosystem.

Overall, Circle's issuance of USDC on the Solana chain is seen as an important part of its cross-chain strategy, which is expected to further enhance USDC's influence in the cryptocurrency space.

4. Trump will attend the Digital Assets Summit and deliver an important speech.

The current President of the United States, Donald Trump, will deliver a speech at the Digital Assets Summit (DAS) on March 20, marking the first appearance of a U.S. President at a conference focused on cryptocurrency.

Trump's speech has attracted attention because he has always maintained a cautious attitude towards cryptocurrencies. Analysts believe that Trump may take this opportunity to elaborate on his policy stance regarding digital assets, which will have a significant impact on the entire industry.

In addition to Trump, this summit will feature speeches from well-known figures such as Congressman Ro Khanna, Tom Emmer, Michael Saylor, and Brad Garlinghouse. Garlinghouse will also announce a significant victory that Ripple has achieved in its lawsuit against the SEC at the summit.

Analysts point out that the Trump administration has always taken a cautious stance on cryptocurrencies and has repeatedly expressed concerns about their regulation. However, as the influence of digital assets continues to grow on Wall Street and among institutional investors, Trump may adjust his position.

Some experts believe that Trump may emphasize the importance of cryptocurrency regulation in his speech while also calling for space for innovation. Others expect that Trump may announce some favorable policies to attract more cryptocurrency companies to develop in the United States.

Regardless, Trump's speech at the Digital Assets Summit will be closely watched worldwide. This speech is seen as an important indicator of the U.S. government's direction on cryptocurrency policy.

5. The three major US stock indices rose collectively, and Bitcoin broke through $87,000.

After the Federal Reserve announced its decision to keep interest rates unchanged, the three major U.S. stock indices collectively rose, and the price of Bitcoin also saw a significant rebound.

The Nasdaq Composite Index rose by 1.4%, the S&P 500 Index increased by 1.08%, and the Dow Jones Industrial Average gained 0.9%. Technology stocks such as Tesla, Apple, and Nvidia led the rally.

At the same time, the price of Bitcoin surged rapidly after the Federal Reserve's decision was announced, briefly breaking through the $87,000 mark, reaching its highest level since March 9. Analysts believe that the market reacted positively to the Fed's decision to pause interest rate hikes.

The stock prices of cryptocurrency-related companies have also risen to varying degrees. The stock prices of Bitcoin mining companies Deer and Core Scientific increased by 6.5% and 5.8%, respectively.

However, some analysts warn that although the Federal Reserve has paused interest rate hikes, inflationary pressures still exist, and the economic outlook remains uncertain. If the economy further weakens, the Federal Reserve may begin a rate-cutting cycle later this year.

Overall, investors have shown a cautiously optimistic attitude towards the Fed's decision this time. The rebound in the stock market and the cryptocurrency market reflects an improvement in market expectations for the economic outlook. However, the long-term trend still needs to observe changes in economic data.

2. Industry Data

1. BTC

Recent transaction price 83201.6000 USD, daily increase +0.04%.

2. ETH

Recent transaction price 1931.9600 USD, intraday increase +1.40%.

3. XRP

Recent transaction price 2.2950 USD, intraday increase +0.20%.

4. GT

Recent trading price is $22.1090, with a daily increase of +0.30%.

5. PI

Recent transaction price 1.1366 USD, intraday decline -4.00%.

3. Industry News

1. Bitcoin breaks through the $86,000 mark, market sentiment is optimistic.

The price of Bitcoin broke the $86,000 mark on March 20, reaching a new high in nearly a month. This increase was mainly driven by positive news regarding the Federal Reserve's decision to maintain interest rates and slow down the pace of balance sheet reduction.

Analysts point out that the Federal Reserve's dovish stance has alleviated market concerns about the pace of interest rate hikes, injecting confidence into risk asset investments. At the same time, the Bitcoin futures market has seen a large-scale deleveraging, with open interest decreasing by $10 billion over three weeks, releasing a significant amount of liquidity and providing support for the rise of Bitcoin.

Exchange data shows that Bitcoin reached a daily high above $87,000, with both trading volume and the number of active addresses experiencing a significant increase. Analysts believe that if Bitcoin can gain strong support at its current position, it is likely to further attack the $90,000 mark. However, macroeconomic uncertainty and geopolitical risks may still trigger market fluctuations, so investors need to remain cautious.

2. Ethereum breaks through $2000, DeFi and Layer 2 sectors strengthen

Ethereum broke through the $2,000 mark on March 20, up more than 5% in 24 hours. In addition to benefiting from the rise of Bitcoin, the activity of the DeFi and Layer 2 sectors in the Ethereum ecosystem is also the main driving force.

Data shows that the DeFi sector has increased by 6.22% in the past 24 hours, with Chainlink and Uniswap rising by 6.58% and 7.05% respectively; the Layer 2 sector has increased by 3.1%, with major projects like Arrum and Optimism experiencing varying degrees of growth. Analysts indicate that the continued development of the DeFi and Layer 2 ecosystems is expected to enhance the practicality and usage rate of Ethereum, thereby supporting the rise in the price of Ether.

However, Ethereum's high transaction fees and congestion issues have not yet been fundamentally resolved, and how to achieve scalability in the future remains a top priority. In addition, Ethereum's dominant position in popular areas such as NFTs and GameFi is also challenged by other public chains. Investors need to closely monitor the development trends of the Ethereum ecosystem.

3. The Cardano ecosystem continues to heat up, with ADA rising over 6%.

The Cardano ecosystem token ADA rose by 6.75% on March 20, reclaiming a spot in the top ten by market capitalization, with its dominance increasing by 78%. This is mainly attributed to the increased activity within the Cardano ecosystem and optimistic expectations for its future development.

The data shows that the number of active addresses and transaction volume on Cardano has seen a significant increase in recent times. In addition, the continuous emergence of new projects and applications in the Cardano ecosystem has also brought impetus to the price increase of ADA. Analysts believe that Cardano's advantages in scalability, sustainability, and decentralization are expected to drive its wider adoption in DeFi, NFTs, and other fields.

However, some analysts have warned about a slowdown in the development of the Cardano ecosystem. They believe that Cardano needs to strengthen its efforts in attracting more developers and increasing ecosystem activity; otherwise, it may be difficult to maintain the current upward momentum. Overall, the development prospects of the Cardano ecosystem are still worth ongoing attention.

4. Project News

1. NULS AI brand upgrade, focusing on AI + blockchain innovative applications

NULS announces its brand upgrade to NULS AI, entering the new era of AI + blockchain. To align with the new strategic direction, NULS will officially promote the ticker change to NAI, focusing on decentralized AI agents, AI smart contracts, AI-enabled DeFi/NFT/DAO, and We security monitoring.

This upgrade will promote the NULS AI ecosystem to develop in a smarter, more efficient, and secure direction, providing global developers and users with more powerful AI+We solutions. NULS is a blockchain infrastructure aimed at customized services, a global open-source community project. By introducing AI technology, NULS will empower the blockchain ecosystem to achieve smarter operations and management.

NULS AI will focus on areas such as DeFi, NFT, and DAO, utilizing AI algorithms to optimize smart contracts and enhance security and efficiency. At the same time, NULS AI will also play an important role in the We security monitoring field, using AI models to identify and prevent potential risks, providing users with a safer experience.

Industry insiders believe that NULS's brand upgrade aligns with the trend of industry development. The combination of AI and blockchain is expected to propel the We ecosystem into a new stage, achieving smarter and more efficient operations. The innovative exploration of NULS AI is worth looking forward to, as it is expected to bring new development opportunities to the industry.

2. Sui Overf 2025 Hackathon Launches, New Programmable Storage Track Added

Sui Overf 2025 Hackathon officially launched, currently in the registration and global roadshow phase. With the Sui ecosystem's decentralized storage project Walrus mainnet about to go live, the programmable storage track has become a new highlight of this Sui Global Hackathon.

This track aims to encourage developers to build innovative storage solutions and tools based on the Walrus network, exploring the application prospects of programmable storage in the Web domain. In addition, other tracks of the hackathon include DeFi, infrastructure and tools, AI, cryptography, Degen, payments, entertainment and culture, multi-chain interoperability, and exploration of emerging application scenarios.

As an emerging public chain ecosystem, Sui has always focused on technological innovation and ecological construction. This hackathon not only provides a platform for developers to showcase their abilities but also promotes the diversified development of the Sui ecosystem. Programmable storage is regarded as an important component of We infrastructure and is expected to drive innovative breakthroughs in the field of data storage and management.

Industry insiders say that the holding of the Sui hackathon reflects the highly open and inclusive characteristics of the ecosystem. By attracting participation from developers around the world, it will undoubtedly inject new vitality and momentum into the Sui ecosystem, accelerating its layout in the We field.

3. The Pandora Chain Ecosystem Conference has opened, starting a new chapter in ecosystem construction.

The Pandora Chain ecological conference was grandly held recently, marking the beginning of a new chapter in ecological construction for this next-generation super public chain designed for complex computations. As an open, inclusive, and vibrant ecosystem, this conference will provide developers and projects with richer resources and support.

Pandora Chain is a new public chain focused on complex computations, aimed at addressing the challenges of scalability, privacy, and security faced by current blockchains. Its innovative consensus mechanism and layered architecture design enable high throughput, low latency, and high scalability, providing strong support for complex computational applications.

During the conference, the Pandora Chain ecosystem will see a series of major releases and upgrades, including new developer tools, application case demonstrations, and ecosystem incentive programs, injecting new momentum into the ecosystem. Attendees will include top scholars, industry leaders, and innovative project parties, who will engage in in-depth discussions on topics such as the development trends, technical challenges, and solutions related to We complex computing.

Insiders believe that the holding of the Pandora Chain ecological conference demonstrates the ambition of this public chain in the field of complex computing. Through continuous technological innovation and ecological construction, Pandora Chain is expected to become a leader in complex computing, contributing new momentum to the industry's development.

5. Economic Dynamics

1. The Federal Reserve keeps interest rates unchanged, focusing on inflation and economic growth prospects.

The current economic environment remains strong overall, but inflationary pressures are persistently high. The latest data shows that the annualized GDP growth rate for the first quarter in the United States is 2.6%, slightly lower than the previous quarter's 3.2%. The core Personal Consumption Expenditures Price Index (PCE) in February rose by 4.7% year-on-year, exceeding the Federal Reserve's target level of 2%. The unemployment rate remains low at 3.6%, and the job market is still tight.

The Federal Reserve decided to maintain the target range for the federal funds rate at 4.25%-4.50% during its monetary policy meeting in March. The meeting statement noted that although economic activity has slowed, the labor market remains strong. The Federal Reserve will continue to assess the impact of further policy actions to achieve its dual mandate of maximum employment and price stability.

This decision triggered a positive market reaction. All three major U.S. stock indexes rose, with the S&P 500 index closing up 1.08%. Cryptocurrencies like Bitcoin also saw a rebound. Investors believe that the Federal Reserve's pause on interest rate hikes is beneficial in alleviating the pressures of an economic slowdown. However, some analysts express concerns that if inflation remains high, the Federal Reserve may have to raise interest rates again in the future.

Goldman Sachs Asset Management's co-head, Whitney Watson, stated that the Federal Reserve's economic forecast revision has a hint of "stagflation" as the predictions for growth and inflation are contradictory. Currently, the Federal Reserve is in a wait-and-see mode, closely monitoring whether the economic slowdown will develop into a more serious issue.

2. Trump's policies raise inflation concerns, putting pressure on the Federal Reserve for policy adjustments.

Recently, the tariff policy introduced by the Trump administration has raised concerns in the market about inflation. Federal Reserve Chairman Powell mentioned the term "tariffs" for the first time at a press conference, acknowledging that the tariff policy is part of the reason for rising inflation. He stated that it is difficult to accurately analyze how much inflation is driven by tariffs, but the Federal Reserve will work to clarify this.

This statement reflects that the trade policy of the Trump administration is putting pressure on the Federal Reserve's monetary policy formulation. Analysts point out that if tariffs continue to drive up inflation levels, the Federal Reserve may have to adjust its policy in the future to respond.

The market has reacted differently to this. Some investors believe that the tariff policy may force the Federal Reserve to accelerate interest rate hikes to control inflation expectations. However, there is also the view that if tariffs lead to an economic slowdown, the Federal Reserve may be forced to cut interest rates in the future.

American economist Brian Jacobsen stated that the Federal Reserve may not easily concede to the economic slowdown caused by tariffs. He believes that the Fed's decision to slow down the pace of reducing the balance sheet is somewhat unexpected, showing a cautious attitude.

3. Uncertainty about the economic outlook has risen, and investors are focused on risk diversification

The latest economic data and policy trends indicate that the uncertainty surrounding the future economic outlook is increasing. The Federal Reserve has lowered its GDP growth forecast but raised its forecasts for inflation and unemployment rates. Officials generally believe that the economy is facing downside risks.

In this context, investors are beginning to reassess their portfolios and seek opportunities for risk diversification. Traditional safe-haven asset gold is favored, with recent price increases. At the same time, cryptocurrencies such as Bitcoin have also attracted some capital inflows, being regarded as a new form of digital gold.

The head of digital assets at BlackRock stated that Bitcoin should not be regarded as a risk asset, and the related narrative leads to a distortion in market valuations. He believes that Bitcoin is considered a unique store of value, and an economic recession may drive its price up.

Experts urge investors to closely monitor changes in the macroeconomic situation. In the current environment, it is particularly important to appropriately diversify investments and manage risks. At the same time, one should also be wary of the volatility risks of emerging assets.

6. Regulation & Policy

1. The Federal Reserve keeps interest rates unchanged, focusing on the impact of tariffs on inflation.

The Federal Reserve decided to maintain the target range for the federal funds rate at 4.25%-4.50% during its meeting on March 20. As the highest monetary policy-making body in the United States, the Fed's decisions aim to achieve the dual objectives of maximum employment and price stability.

At this meeting, Federal Reserve Chairman Powell mentioned the "tariff" issue for the first time. He stated that it is difficult to analyze how much inflation is driven by tariff policies, but they will work hard to clarify it. Powell pointed out that the policies introduced by the new Trump administration will affect the economy, but he will cautiously avoid making overly definitive judgments about this impact.

Market participants believe that Powell's statement reflects the Federal Reserve's growing concern about the impact of tariff policies on inflation. As the Trump administration implements trade protectionist policies, tariffs may drive up the prices of imported goods, consequently raising the inflation level. This will increase the uncertainty for the Federal Reserve when formulating monetary policy.

Whitney Watson, Co-Head of Global Asset Management at Goldman Sachs, stated that the Federal Reserve's revisions to economic growth and inflation forecasts have a bit of a "stagflation" feel, as the predictions for both are going in opposite directions. Currently, the Federal Reserve is in a wait-and-see mode, closely monitoring whether the slowdown in economic growth will develop into a more serious issue.

2. The UK eases cryptocurrency staking regulations to promote industry development.

The UK Treasury recently revised the Financial Services and Markets Act, excluding cryptocurrency staking from the regulatory scope of collective investment schemes. This move aims to promote the compliant development of the cryptocurrency staking ecosystem, reduce its cost burden, but also increases investment risks.

Cryptocurrency staking refers to investors depositing their held cryptocurrencies into a platform, which uses them as collateral for lending transactions, allowing investors to earn certain returns. This model provides investors with a new source of income while also injecting liquidity into the cryptocurrency market.

The UK's Financial Conduct Authority believes that cryptocurrency staking activities are significantly different from traditional collective investment schemes and should be treated differently. This revision separates cryptocurrency staking from the regulation of collective investment schemes, which is beneficial for reducing compliance costs and promoting industry development.

Industry insiders believe that the UK's move demonstrates its efforts to achieve a balance in promoting the development of the cryptocurrency industry. On one hand, easing regulations helps attract more businesses to the market; on the other hand, investors also need to bear greater risks.

Cryptocurrency analyst Conor Ryder stated: "This move clears the way for the development of the UK's cryptocurrency staking ecosystem. However, at the same time, investors need to remain vigilant about potential risks and conduct thorough risk assessments."

3. Pakistan embraces cryptocurrency, attracting foreign investment.

The Pakistani government recently announced plans to create a clear regulatory framework for cryptocurrency trading to attract foreign investment and establish a cryptocurrency hub in South Asia. This initiative aims to leverage the local young workforce to build a digital ecosystem.

Saqib, the chief advisor on digital asset management in Pakistan, stated that countries around the world, including Pakistan, will have to pay attention to cryptocurrencies. According to data from Chainalysis, Pakistan ranks ninth globally in terms of cryptocurrency adoption rate.

Cryptocurrency industry analyst Esther Shaulova believes that Pakistan's move reflects its realization of the potential of cryptocurrencies to promote foreign investment and economic modernization. By establishing a clear regulatory framework, Pakistan is expected to attract more cryptocurrency companies to settle in the country and promote the development of the local cryptocurrency ecosystem.

However, she also reminded that: "The clarity and accessibility of regulation are key to promoting cryptocurrency adoption. Pakistan needs to seek a balance between protecting investor rights and fostering industry development, avoiding excessive regulation that stifles innovation."

Overall, Pakistan's decision to embrace cryptocurrency reflects the growing importance that developing countries place on blockchain technology. With the continuous improvement of regulatory policies, cryptocurrencies are expected to gain development opportunities in more emerging markets.