Crypto Markets: Stuck in Neutral

(March 24 Edition)

This is a big step in blending traditional finance with crypto. The S&P 500, which tracks the largest U.S. companies, is now being used for perpetual futures trading on Hyperliquid. Perpetual contracts let traders bet on price movements without an expiration date, making them popular in crypto. This means people can now trade the stock market index in a more flexible, 24/7 crypto-native way. It also shows how demand is growing for traditional assets to be available on blockchain-based platforms.

For traders, this opens up new strategies and more access, especially outside normal market hours. Overall, it’s another sign that the lines between Wall Street and crypto are starting to blur. If this trend continues, more major indices could follow into crypto markets.

Backpack is officially stepping deeper into the crypto space by launching its own token on Solana. The platform comes from Coral, the team founded by Armani Ferrante and Tristan Yver, who also built the Backpack wallet, exchange, and the Mad Lads NFT collection. Tokens like this are usually used for things like governance, rewards, or powering features inside the platform. Since it’s built on Solana, users can expect fast transactions and low fees. This move could help Backpack grow its ecosystem and attract more users and developers. It also puts them in direct competition with other platforms that already have strong token economies.

For users, it could mean new incentives, airdrops, or ways to earn by participating early. How well this token performs will likely depend on how strong their ecosystem actually becomes.

The FTX Recovery Trust is preparing to send out about $2.2 billion to creditors at the end of March. This is part of the ongoing effort to repay users after the exchange collapsed. While it’s good news that people are getting money back, it’s been a long and painful process. For many, this distribution is just one piece of what they originally lost. Still, every payout helps restore some confidence in how bankruptcies in crypto can be handled. There’s also a market angle, since some recipients may reinvest that money back into crypto.

Overall, it’s a reminder that the fallout from FTX is still playing out years later. How this capital gets redeployed could have a short-term impact on market liquidity.

Polymarket traders are now pricing in a 25% chance that the Federal Reserve will raise interest rates in 2026. That might not sound huge, but it shows expectations are shifting. Interest rate hikes usually happen when inflation is still a concern or the economy is running hot. Higher rates tend to slow things down and can put pressure on risk assets like crypto and stocks. The fact that people are betting on this outcome shows uncertainty is still very much alive.

Markets don’t just react to decisions, they react to expectations like this. If those odds keep rising, you’ll likely see volatility pick up across the board. It also shows how prediction markets are becoming a real signal traders are starting to watch.

Kraken has decided to pause its plans to go public, citing tough market conditions. IPOs usually happen when markets are strong and investor demand is high, so this signals things aren’t ideal right now. The crypto industry has been dealing with uncertainty, regulation pressure, and mixed investor sentiment. By holding off, Kraken is likely waiting for a better window to get a stronger valuation. It’s a strategic move, not necessarily a negative one long term.

Still, it shows even major crypto companies are feeling the pressure. For the broader market, it’s another sign that the road to mainstream adoption isn’t always smooth. A successful future IPO could still be a major milestone once conditions improve.