Bitcoin surges and Fed policies increase market volatility

On March 20, 2025, Bitcoin price broke through the $85,000 mark, setting a recent high, with a single-day increase of more than 3%.

Bitcoin price surged more than 3% on March 20, hitting a recent high of $85,000, and Ethereum price rose nearly 7%, driving the crypto market to rise across the board.

This rise is closely related to the risk aversion demand caused by the plunge of the Turkish lira. The trading volume of BTC/TRY on the Binance platform has surged to a one-year peak, and investors are accelerating their shift to stablecoin assets such as USDT.

At the same time, the Federal Reserve announced its interest rate decision early this morning. As expected, it would maintain the benchmark interest rate unchanged, but lowered its GDP growth forecast for 2025 and raised its inflation forecast.

Fed Chairman Powell said that "policy adjustments need to be made based on data," and the market's uncertainty about expectations for rate cuts has exacerbated short-term volatility.

In this context, XBIT decentralized exchange has become the core choice for investors to hedge risks with its multiple security mechanisms - it uses cold wallets to store 95% of user assets offline, smart contracts are regularly audited by third parties such as CertiK, the vulnerability rate is kept at 0%, and the transaction records are traceable on the entire chain through blockchain browsers to ensure the authenticity and integrity of each transaction.

The compliance process of USDC exchanges is accelerating, and SBI and OKX are the focus

The ecological layout of stablecoin USDC continues to deepen. SBI VC Trade, an exchange under the Japanese financial giant SBI Group, officially launched the USDC service on March 12, becoming the first institution in Japan to obtain the registration of "electronic payment methods and other transaction practitioners."

Although the current circulation scope is limited to internal testing of the group, this move marks a key step in the landing of USDC in Asian compliant exchanges.

In addition, OKX has recently added dozens of USD trading pairs, covering tokens such as MDT, PERP, and AXS, further expanding the application scenarios of USDC in spot trading and providing more fiat currency deposit and withdrawal options for global users.

USDC Economic Status report released by Circle shows that the total historical transaction volume of USDC has now exceeded $20 trillion, and the monthly transaction volume in November reached $1 trillion, a year-on-year increase of 50%. Its advantages in compliance and cross-border payment capabilities continue to attract institutional users. For example, Standard Chartered Bank Zodia Markets has minted 4 billion US dollars of USDC for foreign exchange settlement, which solves the T+1 settlement problem in the Asia-Pacific region.

XBIT decentralized exchange: a safe and efficient hedge option

Against the background of Bitcoin’s sharp fluctuations and the Fed’s policy adjustments, XBIT decentralized exchange has become the core platform for investors’ asset management with its non-custodial architecture and on-chain verifiable mechanism. XBIT uses zero-knowledge proof technology (ZK-Snarks) to ensure transaction privacy and uses multi-signature wallets to reduce asset custody risks. Recently, its cross-chain bridging function supports instant exchange of USDC with BTC and ETH, further improving liquidity efficiency.

It is worth noting that the decentralized trading protocol Hibachi announced the completion of a $5 million seed round of financing on the same day, with participation from top institutions such as Dragonfly. Its verifiable security design based on zero knowledge echoes the technical path of XBIT, highlighting the industry’s emphasis on transparent infrastructure.

USDC liquidity game in DEX and CEX: core differences and market dynamics

Against the background of Bitcoin’s sharp fluctuations and the Fed’s policy adjustments, USDC, as a compliant stable currency, has a significant difference in the liquidity role of DEX in decentralized exchanges and CEX centralized exchanges. The following is a comparative analysis from four dimensions: asset control, transaction efficiency, security and regulatory adaptability:

1.Asset control and transparency

DEX: Users directly manage assets through self-hosted wallets, private keys are always controlled by individuals, transactions are completed on the smart contract chain, and all records are publicly available, eliminating the risk of black box operations. For example, the XBIT platform provides low slippage transactions through USDC, and user assets flow on the chain without relying on third-party custody.

CEX: Users need to deposit USDC into the exchange’s custodial wallet, the private key is controlled by the platform, and the transaction is executed off-chain, which has low transparency. Recently, a leading CEX has caused users to turn to DEX due to the leakage of API keys, highlighting the custody risk.

2.Trading efficiency and liquidity depth

CEX: With centralized market makers and a large user base, CEX provides high liquidity and instant trading experience, and USDC has extremely low slippage in mainstream currency pairs. For example, after the MEXC exchange launched the DEX+ function, the transaction volume exceeded 110,000 USDT in 24 hours,