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Why the Market Crash Could Drive a 40% Rally for HBAR Price

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HBAR Correlation With Bitcoin

Hedera price has declined sharply over recent sessions, recording a 15% pullback that pushed HBAR lower. While the move appears bearish at first glance, on-chain and technical indicators suggest a different narrative. 

Investor behavior points to accumulation rather than panic selling. This shift positions the decline as a potential opportunity rather than a breakdown.

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Hedera Following Bitcoin Was The Problem

HBAR’s recent weakness closely mirrors Bitcoin’s price action. The altcoin shares a strong correlation of 0.98 with BTC. Such a high correlation makes HBAR highly sensitive to broader market moves. When Bitcoin fell below $80,000, HBAR followed almost immediately.

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This relationship explains the sudden drop below $0.100. The move was less about Hedera’s fundamentals and more about market-wide pressure.

In periods of sharp Bitcoin declines, highly correlated assets often experience exaggerated moves. That dynamic played out clearly during HBAR’s recent slide.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

HBAR Correlation With Bitcoin
HBAR Correlation With Bitcoin. Source: TradingView

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HBAR Holders Are Doubling Down

Despite price weakness, HBAR holders are pushing back against the bearish outlook. The Chaikin Money Flow indicator shows a notable divergence. Over the past four days, CMF formed lower highs while HBAR price printed lower lows. This pattern signals growing inflows despite a decline in price.

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Bullish divergence often precedes reversals. It suggests investors are accumulating while the price remains suppressed.

Although HBAR has yet to reflect this demand, capital inflows are building beneath the surface. This disconnect increases the probability of a rebound once selling pressure eases.

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HBAR CMF
HBAR CMF. Source: TradingView

The Relative Strength Index further supports a bullish setup. HBAR’s RSI has dropped below the 30.0 threshold, placing the asset firmly in oversold territory. Oversold conditions often indicate selling exhaustion rather than sustained weakness.

Historically, assets trading at these levels experience a slowdown in sell orders. Lower prices tend to attract buyers seeking value entries. For HBAR, this environment increases the likelihood of stabilization and recovery, especially when combined with rising inflows.

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HBAR RSI
HBAR RSI. Source: TradingView

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HBAR Price Eyes Breakout

HBAR price is trading near $0.091 at the time of writing. The altcoin has been moving within a descending broadening wedge for roughly a month. This structure formed after a failed breakout attempt in mid-January. Such patterns often resolve with strong directional moves.

A confirmed breakout from the wedge projects a 43% rally toward $0.146. That target reflects a broader bullish macro scenario. In the near term, HBAR must first reclaim $0.103. A move toward $0.114 would confirm early breakout momentum and validate bullish signals.

HBAR Price Analysis.
HBAR Price Analysis. Source: TradingView

Downside risk remains if conditions deteriorate further. Continued Bitcoin weakness could override positive indicators. If HBAR loses support at $0.091, the price may slide toward $0.084. Such a move would invalidate the bullish thesis and delay any recovery attempt.

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Crypto World

Banks Push Tokenized Deposits as On-Chain Cash Race Heats Up

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Crypto Breaking News

Banks are increasingly testing tokenized deposits as a practical way to move traditional commercial bank money onto blockchain-based payment and settlement rails. A new report from the real-world asset data platform RWA.io, with input from UK Finance, Citi, BNY, JPMorgan’s Kinexys, Standard Chartered, ABN Amro and Digital Asset, argues that tokenized deposits are emerging alongside stablecoins and central bank digital currencies as part of a broader on-chain cash stack for the financial system.

Tokenized deposits are digital representations of ordinary bank deposits on blockchain or other distributed ledger infrastructure. Unlike many stablecoins, they are direct liabilities of the issuing bank and remain governed by existing banking frameworks, including deposit insurance, capital requirements and anti-money laundering and know-your-customer rules. The report highlights a growing slate of pilots and deployments across Europe as banks seek to preserve their role in payments, treasury and deposit-taking amid a proliferation of digital cash instruments.

The report notes visible momentum in Europe, anchored by recent public pilots. In January, Lloyds Banking Group and Archax announced they completed the UK’s first public blockchain transaction using tokenized deposits on the Canton Network. Separately, UK Finance’s Great British Tokenised Deposit pilot is examining person-to-person marketplace payments, remortgaging and digital-asset settlement with a target to advance through mid-2026.

The broader narrative is that banks are trying to reposition themselves at the center of digital money flows as tokenized forms of cash multiply and new settlement rails emerge. The two-tier monetary-ecosystem picture that underpins these efforts is a key theme of the report and a reminder that commercial bank money continues to underpin everyday payments even as the frontier of digital assets expands.

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Two-tier monetary system architecture. Source: RWA.io

Tokenized deposits as a middle ground in the stablecoin, CBDC debate

UK Finance frames tokenized deposits as a vital bridge in a future “multi-money” ecosystem. In their view, tokenized deposits will sit alongside privately issued stablecoins and, potentially, central bank digital currencies, offering a framework in which traditional bank money can operate on new digital rails while preserving regulatory protections and consumer safeguards.

“Bringing that money onto digital rails will underpin the next generation of digital finance,” said Marko Vidrih, co-founder and chief operating officer at RWA.io. “For that reason, it is important to understand how tokenized deposits fit within the broader digital money ecosystem alongside stablecoins and CBDCs.”

ECB advances digital euro work, building tokenized money rails

The policy backdrop in Europe is advancing in parallel. The European Central Bank is expanding its digital euro program as private and public digital money compete for cross-border and domestic use. The ECB has opened applications for experts to contribute to workstreams on how a digital euro would function across ATMs, payment terminals and acceptance infrastructure, with plans to begin a 12-month pilot in the second half of 2027.

In March, the ECB unveiled Appia, its long-term blueprint for tokenized markets in Europe that would work with central bank money. A core element of Appia is Pontes, a new settlement mechanism designed to connect blockchain-based platforms to the Eurosystem’s payment infrastructure. The existing framework, TARGET Services, already processes large-value euro payments, securities settlements and instant payments across Europe. Pontes is scheduled to launch in the third quarter of 2026, with feedback from Appia’s consultation guiding broader tokenized-finance framework decisions for Europe.

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These developments come as policymakers seek to balance innovation with safety, and as banks, fintechs and custodians explore how tokenized assets and on-chain settlement fit within existing regulatory and supervisory regimes.

For market participants, the implication is clear: tokenized deposits could serve as a practical on-ramp for institutions anchored in traditional banking to participate in the digitized economy without abandoning their regulated foundations. The combined push—from UK pilots to European rails—highlights a trend toward interoperable, regulated on-chain money that preserves the institutional protections that users rely on today.

As the ecosystem evolves, investors and users will be watching how these rails interact with private-stablecoin ecosystems, CBDC pilots and cross-border settlement standards. The success of tokenized deposits will hinge on risk controls, interoperable settlement timelines, and the readiness of banks to scale these pilots into durable, insured, compliant products that can operate alongside existing payment networks.

What remains uncertain is how quickly regulators will align around clear standards for tokenized deposits, what coverage and insurance will apply at scale, and how liquidity and settlement finality will be ensured across heterogeneous blockchain rails. Yet the convergence of bank money with tokenized infrastructure marks a notable shift in the trajectory of digital finance, one that could influence how institutions price, manage and settle money in a world where digital and traditional money increasingly coexist.

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Readers should watch the next phase of UK pilots and the European rollout of Appia and Pontes for concrete milestones on settlement timings, interoperability tests and regulatory clarity that could determine whether tokenized deposits become a standard feature of the financial system, or a pioneering set of pilots with limited upside outside controlled environments.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Saylor Hints Strategy Bought More Bitcoin

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Saylor Hints Strategy Bought More Bitcoin

Strategy executive chair Michael Saylor has hinted that his company bought more Bitcoin despite a market tumble over the weekend that has now pushed his company’s Bitcoin bet into a 10% loss. 

“The Orange March Continues,” Saylor posted to X on Sunday, alongside a chart showing Strategy’s roughly $52 billion worth of Bitcoin (BTC) purchases since August 2020. 

Saylor often posts the chart as a signal that his company has bought, or plans to buy more Bitcoin and it is often seen as a bullish signal for investors. 

Source: Michael Saylor

The potential buy would add to Strategy’s larger-than-usual Bitcoin purchases this month, including 17,994 Bitcoin on March 9 and 22,337 Bitcoin on March 16, amounting to $2.9 billion in Bitcoin. 

It also comes amid heightened military tensions between US and Iran, causing fears of a prolonged energy and oil crisis. 

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Bitcoin fell 4% to $67,725 on Sunday before partially recovering to $68,100 at the time of writing.

With Strategy’s average cost per Bitcoin at around $75,696, the company is currently down more than 10% on its Bitcoin bet, according to BitcoinTreasuries.

Details of Strategy’s Bitcoin holdings. Source: BitcoinTreasuries.NET

Strategy had been funding much of its Bitcoin purchases through high-yield perpetual preferred stock offerings — such as Stretch (STRC) — giving investors monthly dividends while the company grows its Bitcoin treasury without diluting MSTR common shares. 

However, it halted funding through STRC last week after failing to raise fresh capital from the preferred stock.

MSTR back in the red after short-lived rally

Strategy (MSTR) shares fell 6.6% last week to $135.66, erasing some of the double-digit gains they made earlier in the month, Google Finance data shows.

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