Global markets shifted into a risk off environment under the combined impact of high interest rate expectations and escalating geopolitical tensions. Rising Treasury yields pressured the valuation of risk assets, while precious metals corrected sharply after their earlier surge. The crypto market weakened in tandem, with BTC falling below $70,000. Meanwhile, crude oil remained resilient amid expectations of potential supply disruptions, and energy factors continued to influence the inflation path. Overall, macro variables have reasserted dominance over market pricing, and risk appetite has clearly contracted.
Key highlights from last week:
- Market Focus: Strengthened hawkish expectations from the Fed, combined with escalating geopolitical tensions, pushed global markets into a defensive mode. Precious metals corrected from elevated levels, crypto assets weakened, and energy prices remained resilient, with uncertainty around inflation and the rate path still the core theme.
- Liquidity: BTC and ETH ETFs turned to net outflows, indicating a clear slowdown in short term incremental capital. However, overall AUM remains elevated, suggesting that long term capital has not exited. Macro asset trading continues to dominate in Perp DEX, but overall volumes declined, with CEX TradFi perpetual trading volume dropping significantly on a weekly basis.
- On-chain Data: The DEX structure saw a clear reshuffle, with liquidity further concentrating in leading and high efficiency protocols. Meteora rose rapidly, reshaping the competitive landscape. Stablecoin supply remained broadly stable, with marginal growth shifting toward protocol native stablecoins. DeFi credit demand moved back toward stablecoin arbitrage and capital rotation use cases.
- Derivatives: BTC funding rates remained negative, indicating persistent short dominance, though signs of short squeeze risk emerged later in the week. Open interest first increased and then declined, reflecting overall deleveraging. In the options market, longer dated contracts gained share, implied volatility stayed elevated, and the market continued pricing in uncertainty and downside risks.
- Outlook: Key data including Core PCE, GDP, and initial jobless claims will be in focus, directly shaping the rate path and risk asset pricing. At the same time, geopolitical developments and energy supply dynamics may further amplify volatility.
- Institutional Updates: Gate’s institutional contracts significantly outperformed the market, boosting spot and futures market share by 38% and 33% respectively. The optimized fee structure and market-making mechanism further enhanced liquidity and trading depth.
Discover more details today → Gate Institutional Weekly: Oil Supply Shock Worsens, Meteora Volume Surges Sharply (Mar 16–22, 2026)
Gate Research is a comprehensive blockchain and cryptocurrency research platform that provides deep content for readers, including technical analysis, market insights, industry research, trend forecasting, and macroeconomic policy analysis.
Disclaimer
Investing in cryptocurrency markets involves high risk. Users are advised to conduct their own research and fully understand the nature of the assets and products before making any investment decisions. Gate is not responsible for any losses or damages arising from such decisions.
Gate Team
25 Mart 2026
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