The crypto markets have whipsawed following President Donald Trump’s unexpected announcement of a strategic crypto reserve over the weekend. Bitwise Asset Management’s Chief Investment Officer (CIO), Matt Hougan, contends that traders are overreacting to the proposed plan’s details and missing what could be a bullish development for digital assets. Late Sunday, President Trump revealed a United States government initiative to acquire and hold five different cryptocurrencies—Bitcoin, Ethereum, Solana, XRP, and Cardano—in a strategic reserve. Initially, the market response was emphatically positive: Bitcoin’s price surged from around $85,000 to $95,000. However, as Hougan notes in his latest investor memo, that initial optimism was short-lived. By Monday, the major crypto assets named in the announcement had surrendered their gains. Everyone Is Misjudging Trump’s Crypto Reserve Bitwise released its memo on March 4, titled “The Market Has This Wrong: Thoughts on Trump’s Strategic Crypto Reserve.” In it, Hougan points to overly narrow market interpretations as the principal cause behind the abrupt retracement. “The market is overthinking things. For all the flaws in the rollout, the reserve news is bullish.” Related Reading: Why Is The Crypto Market Down Today? He elaborates on why the proposal is not being greeted with lasting enthusiasm. A large part of the skepticism centers on the White House’s choice of five cryptocurrencies, which critics describe as an overly broad selection. In Hougan’s words: “The inclusion of speculative assets like Cardano feels more calculating than strategic.” Although the plan initially seemed like a vote of confidence from Washington, some crypto commentators—such as Coinbase CEO Brian Armstrong and Castle Island Ventures Founder Nic Carter—have questioned the rationale behind broadening the reserve beyond Bitcoin. Bitwise CEO Hunter Horsley also weighed in shortly after the announcement, publicly expressing a preference for a more conservative, bitcoin-centric reserve. Despite this, Hougan’s memo argues that market participants may be failing to see the bigger picture. In the memo, Hougan outlines three major takeaways regarding the strategic reserve plan. Hougan suggests that President Trump’s first public draft often differs considerably from what eventually becomes policy. The reserve, he argues, might ultimately shift to a “bitcoin-only” approach or evolve to a more balanced composition following industry input. “Over the coming days, big names from the crypto industry will make their feelings felt about the reserve idea.” According to Hougan, the announcement further cements the perception of Bitcoin as a strategically important asset. He believes this could spur competing nations to follow suit, mirroring smaller-scale adoption already seen in El Salvador, Bhutan, and Abu Dhabi. “If you are Honduras, Mexico, or Guatemala, and you’re watching El Salvador and now the US acquire bitcoin, can you really afford to be at zero?” Related Reading: Crypto Market Shaken: Tariff War Hits ETH, XRP, And SOL Hard Hougan also points to the political calculus, suggesting that even a future administration with different views might not divest the reserve once it exists. He notes that the US has historically held onto strategic assets, such as gold, for extended periods. “We learned this in the last election, where the GOP’s courtship of crypto gained it many votes while Democratic hostility gained few. I suspect that any crypto that is purchased will be held for a very long time.” Despite the optimism, Hougan acknowledges the prospect that the pushback could become so intense that the reserve is either scaled down or scrapped. Critics say that including less-established assets alongside Bitcoin only muddies the waters and may undermine the legitimacy of the initiative. Hougan, however, believes that “the final reserve will be nearly entirely bitcoin, and it will be larger than people think.” He also underscores a broader point: The simple acknowledgment by the US government that crypto assets can be deemed “strategic” has potentially game-changing significance. In his view, such a designation could catalyze global adoption, spurring other countries to purchase crypto or ramp up holdings already in place. According to Hougan, Sunday’s announcement should be interpreted as bullish for digital assets—despite the complicated rollout and the resulting price swings. He warns that markets might be letting short-term controversies overshadow the bigger picture: “The US government declaring crypto assets ‘strategic’ is bullish. I think the market will eventually realize that.” As the White House prepares for a scheduled Crypto Summit this Friday—hosted by crypto czar David Sacks—industry voices will likely press for a more measured and possibly narrower reserve structure. Whether the final policy ultimately narrows to a bitcoin-focused plan or persists with multiple coins, Hougan believes it may still mark a meaningful step forward in the mainstream legitimization of crypto. The initial reaction may have been mixed, but, as he succinctly puts it, “after the dust settles, I suspect the final reserve will look pretty good.” At press time, BTC traded at $87,565. Featured image from YouTube, chart from TradingView.com
The National Cryptocurrency Association officially launched on Wednesday, aiming to help Americans better understand the industry.
“The President definitely thinks that there's a Bitcoin strategic reserve,” Lutnick said, "other crypto tokens will be treated differently."
Bitwise CIO Matt Hougan said the market is "overthinking things" amid the U.S. crypto-reserve fueled Trump pump and slump.
The Bitcoin price action is showing strong bullish signals, as a rare Inverse Head and Shoulder pattern has just broken out and retested its neckline. This technical setup suggests that Bitcoin could be gearing up for a mega rally to $300,000 soon. Analyst Forecasts Bitcoin Price Reversal On Monday, crypto analyst Gert van Lagen took to X (formerly Twitter) to forecast an imminent Bitcoin price surge to $300,000. The analyst presented a detailed price chart depicting the formation of an Inverse Head and Shoulder pattern, showcasing its left shoulder, head, right shoulder, and neckline. Related Reading: Bitcoin $166,000 Target Still In Play? The Extension That Determines Where Price Goes Next Based on his analysis on X, Lagen highlights that Bitcoin has successfully broken above the neckline of this technical pattern, confirming a possible bullish reversal. Specifically, the Inverse Head and Shoulder pattern is a classic technical indicator that signals a shift from a bearish trend to a bullish trend. The left shoulder of the pattern highlights a price decline followed by a temporary recovery. The head suggests a deep drop, marking the lowest point of the trend. The right shoulder indicates a smaller decline followed by a breakout above the neckline. Bitcoin broke above the pattern’s neckline around the $86,972 price point. Lagen has pointed out that a successful retest of this neckline could solidify Bitcoin’s bullish move. This is because, historically, once this pattern is confirmed, cryptocurrencies tend to witness significant upside momentum. Based on the measured move of the Inverse Head and Shoulder, Lagen predicts that Bitcoin is on track to reach $300,000 this bull cycle. This would represent a whopping 258.4% increase from its current market price. The analyst also highlights a sell line between $340,000 and $380,000; here, traders are likely to exit or take profits. Supporting this bullish outlook is a parabolic step-like formation on the Bitcoin price chart. Lagen revealed that this follows a series of formations from Base 1 to 4 before triggering an explosive price rally. Currently, Bitcoin has completed Base 3 and is entering its final parabolic phase. This technical formation aligns with the Elliott Wave theory that suggests that a strong Wave 5 could result in a significant price surge. While the analyst is confident in his $300,000 Bitcoin price projection, he warns that it could be completely invalidated if BTC drops below $72,900 in the weekly timeframe. Furthermore, a break below this threshold could signal a deeper price correction and delay the rally. Update On BTC’s Price Analysis While analysts remain optimistic about Bitcoin’s future outlook, the cryptocurrency experiences bearish momentum. In just 24 hours, Bitcoin lost virtually all the price gains it had accumulated since President Donald Trump announced plans for a crypto reserve. Related Reading: Bitcoin Flag Pole Pattern Puts Price At $120,000, Analyst Explains The Roadmap The cryptocurrency was trading above $92,000 the previous day. However, Bitcoin has been down 9.18% in the last 24 hours and a whopping 16% over the past month, according to CoinMarketCap. This severe price decline has pushed the value of Bitcoin down to $83,699 as of writing. Featured image from Adobe Stock, chart from Tradingview.com
With a split among Democrats, the Senate resolution to erase the IRS' DeFi-focused crypto broker rule passed with a massive majority and is now up to the House.
As the U.S. Senate began its process to consider a resolution to erase the recent IRS rule that targets DeFi, the White House cheered it on.
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
On Sunday, Cardano (ADA) saw a massive 80% pump following the US President’s announcement of a “Crypto Strategic Reserve” that will include ADA. As the cryptocurrency retests its key support levels, some analysts believe it might be poised for a 125% rally from current levels. Related Reading: Dogecoin Breaks Above Falling Wedge Pattern – Analyst Sets $0.43 Target Cardano Attempts Reclaiming $1 On March 2, US President Donald Trump announced the establishment of a “US Crypto Reserve” comprised of Cardano, XRP, and Solana (SOL), with Bitcoin (BTC) and Ethereum (ETH) at the heart of the strategic reserve. On his social media platform, Truth Social, Trump stated the strategic reserve would “elevate the critical industry after years of corrupt attacks by the Biden Administration.” The announcement sent many cryptocurrencies into an end-of-week pump to reclaim some recently lost support levels. ADA has been in a downtrend since December when it hit its 3-year high of $1.32 but failed to hold the $1 support in mid-January. The February market retraces sent the cryptocurrency’s price below several key support zones, with the token hovering between the $0.60-$0.80 price range. Following Trump’s announcement, Cardano rose 60% in two hours, climbing from $0.64 to the $1 barrier for the first time in over a month. ADA continued its surge in the following hours, recovering over 80% from its Friday low of $0.58. On Sunday, ADA hit a two-month high of $1.17 before retracing over 20% to the key $0.90 support zone. Cardano investor Sebastian noted that the retest of the $0.92 level was “perfectly normal after such an insane move.” The investor suggested it could consolidate within the $0.90-$1.00 range for a few days before resuming its ascending trajectory. Moreover, he asserted that If ADA breaks above its December high, the token could likely see a new all-time high (ATH) soon. ADA’s New High Could Be Near Crypto analyst Ali Martinez stated that Cardano “could be poised for a rally to $2.20.” According to the post, investors should “watch for a 12-hour candlestick close above $1.19” to confirm the bullish breakout and target an 84% jump from the breakout level. Martinez also highlighted that Cardano whales bought over 420 million ADA in the past 24 hours, which could signal strong sentiment from large-scale investors on the cryptocurrency. Meanwhile, Sjuul from AltCryptoGems affirmed that Cardano’s chart displays a “big power of 3 in the making.” This pattern divides the price cycle into three phases: accumulation, manipulation, and distribution. Related Reading: Bitcoin Reclaims Key Levels And Faces Resistance At $97K – Can It Break $100K This Week? The first phase consists of a consolidation near the recent high after a strong price performance. The second phase sees a token’s price falling below the accumulation phase’s support level and trades within a range below the recently lost zone. In the third phase, a strong price breakout occurs, with momentum building and participants entering the market. According to Sjuul, “the chart never lies,” and Cardano entered the distribution phase after Sunday’s pump, suggesting that ADA could retest December highs soon. As of this writing, ADA trades at $0.91, a 9.9% retrace in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
ARKB remains the top allocation within Ark Invest's Next Generation Internet fund, with a weighting of 10.3%.
Despite recovering from bearish lows following its recent uptick, a crypto analyst has predicted that the XRP price could undergo a further decline in its price to $1.5. The analyst has pinpointed a critical resistance level that XRP will need to hold lest it crashes to new lows and eradicates recent gains. Analyst Predicts XRP Price Crash To $1.5 TradingView crypto analyst MadWhale has shared a new price analysis focusing on XRP’s future price potential. The analyst emphasized his strong track record of cryptocurrency trends, underscoring that he has accurately identified and hit all the gain targets. Related Reading: XRP Price Pump To $3.35 On The Horizon With Bullish Cup And Handle Pattern Formation MadWhale predicts that the XRP price could crash below $1.9 to $1.5. The analyst revealed that XRP is currently in a downtrend and has been making lower highs and lower lows, indicating a bearish structure. According to his price chart, the cryptocurrency is also trading within a descending channel and fast approaching a key resistance level. This critical resistance point at the $2 mark has been tagged as a psychological level where sellers are likely to emerge and trigger further downward pressure on the cryptocurrency. If a rejection occurs at this $2.00 resistance level, MadWhale highlights that the next support area and downside target will be around $1.90, representing a 17.62% value drop. If the resistance level fails completely and the $1.90 support level breaks, the TradingView crypto analyst has forecasted another major breakdown in the XRP price. He predicts that the cryptocurrency could experience a more profound decline of 35%, possibly dropping down to the next major support level at $1.5. This crash target aligns with the lower boundary of the descending channel in which XRP currently resides. MadWhale has revealed that the decline to $1.5 could serve as a pivotal point for price stabilization, hinting at a possible reversal in the cryptocurrency once bearish pressures wane. The analyst’s price chart also shows that XRP recently tested the upper boundary of the descending channel but faced a rejection near the resistance. The main daily resistance area for the XRP price is marked in red on the chart, suggesting that $2.6 is where selling pressure might occur. As of this writing, XRP is trading at $2.8, already significantly above MadWhale’s daily resistance area. Trump’s Crypto Reserve Plan Triggers Major XRP Price Surge After experiencing a significant price crash over the past few weeks, the XRP price seems to be recovering at an alarming pace. In just one day, the cryptocurrency saw a double-digit price surge, successfully reversing its previous downtrend. Related Reading: Pundit Who Correctly Predicted XRP Price Crash To $2.5 Says Demand Zone Will Send It Soaring Analysts have attributed this unexpected sharp surge to the recent United States (US) crypto reserve plan announced by Donald Trump. The US President had included XRP in his plans for a crypto reserve aimed at boosting the country’s debt strategy and crypto dominance. As news of this strategic plan spread, the XRP price saw a 24.5% increase, pushing its value significantly above the $2.5 threshold once again. Featured image from iStock, chart from Tradingview.com
The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.
What Are Crypto Leaders Saying About Trump Crypto Reserve Plans? Read Here to Find Out
Trump's reserve announcement raised further questions over asset allocations, how it would be funded and how likely it is to be enacted.
Trump said Sunday that XRP, SOL, and ADA, along with BTC and ETH, will be included in the proposed crypto reserve.
Trump is scheduled to hold the first Crypto Summit at the White House on Mar.7, where he is expected to share further plans on how crypto regulations and businesses will be supported in the country.
The Bybit hack, a more hawkish Federal Reserve and weakened sentiment contributed to the negative flows, James Butterfill said.
Analyst says expectations 'may remain high' until Friday, citing Crypto Czar David Sacks' hints of 'more to come' at the upcoming Summit.
Sacks' comment came after concerns emerged online over potential conflicts of interest regarding his ties with Bitwise.
Brian Armstrong said while he was still forming an opinion, including only Bitcoin in the reserve would 'probably be the best option.'
Earlier today, Bitcoin (BTC) dropped below $80,000 for the first time in over three months. According to data from Binance, BTC hit a low of $78,258, filling the Chicago Mercantile Exchange (CME) gap between $78,000 and $80,000. Bitcoin Fills CME Gap, Is It Time For Rebound? With today’s dip, BTC has now filled every CME gap since March 2024. At the time of writing, the leading cryptocurrency is trading in the low $80,000 range. Related Reading: Bitcoin Hits Its Most Oversold Level Since August 2024 – Is A Rebound Coming? For the uninitiated, the CME gap refers to the price difference that occurs on the CME Bitcoin futures chart between Friday’s closing price and Monday’s opening price, as CME does not trade on weekends. These gaps are often filled later as Bitcoin’s price naturally retraces to these levels, acting as key support or resistance zones. A new CME gap has now emerged due to the ongoing market sell-off, triggered by US President Donald Trump’s confirmation that trade tariffs on Canada, China, and Mexico will take effect on March 4. According to crypto analyst Rekt Capital, the new CME gap lies between $92,800 and $94,000. If past data is anything to go by, this new CME gap may work as a price magnet, pulling BTC upward and initiating a bullish trend reversal. For example, back in January 2021, BTC filled a CME gap between $29,410 and $33,050. After filling the gap, BTC continued to dip further, before surging to as high as $40,000. That said, macroeconomic and geopolitical factors remain significant. The US Federal Reserve (Fed) and Trump continue to clash over interest rate policies. While the Fed has maintained that it is in no rush to cut rates, Trump has repeatedly called for immediate reductions. However, positive inflation data could pressure the Fed to accelerate rate cuts. According to an X post by The Kobeissi Letter, January’s PCE inflation – the Fed’s preferred measure – aligned with its projection of 2.5%. Similarly, core inflation – which measures the change in consumer prices excluding volatile items like food and energy – was in-line with expectations of 2.6% as well. However, data from CME FedWatch suggests that the Fed is likely to keep interest rates unchanged at the March 19 FOMC meeting. Is The BTC Bottom In? Although BTC has fallen nearly 20% over the past month, some analysts believe further downside may still be ahead. A recent forecast from Standard Chartered suggests BTC could decline another 10% before finding support. Related Reading: Is Bitcoin Showing Early Signs Of Bullish Divergence? Analyst Explains However, there are also signs that BTC may be forming a local bottom. Crypto analyst Ali Martinez noted that sell-side pressure is easing, which could indicate that BTC is stabilizing. Additionally, the Cryptoasset Sentiment Index recently flashed a strong contrarian buy signal, further hinting at a potential price floor for BTC. At press time, BTC trades at $83,508, down 2.5% in the past 24 hours. Featured image from Unsplash, Charts from X and TradingView.com
Crypto and AI Czar David Sacks, "prominent founders, CEOs and investors" will convene at the White House with U.S. President Donald Trump.
US spot bitcoin ETFs also saw an eight-day negative streak, and Patrick McHenry joined Ondo Finance as advisory board vice chairman.
The elimination of capital gains taxes on crypto might not be the huge boon to American investors that it would appear to be.
The trademark application notes the "TRUMP"-branded metaverse would offer virtual entertainment, economic and educational experiences.
Bitcoin has plunged below $80,000, marking its lowest point since November 2024, as the broader crypto market experiences a significant downturn. The ongoing sell-off has erased nearly all gains recorded after Donald Trump’s election victory, signaling a period of intense volatility. $1 trillion loss Data from CryptoSlate shows that Bitcoin fell by more than 8% […]
The post Bitcoin’s dip below $80k and crypto market turmoil as $1 trillion in unrealized profit vanishes appeared first on CryptoSlate.
The Bitcoin price has experienced such severe downward pressure and volatility that many are starting to believe that the bear market may have begun. While some analysts hope for a price reversal to the upside, others predict a further crash to $70,000, eradicating almost all gains achieved after the US election rally. Popular crypto analyst and Co-founder of BitMEX Arthur Hayes has shared a bearish prediction for the Bitcoin price. Hayes projects a further breakdown in Bitcoin’s value, suggesting an imminent drop between $70,000 and $75,000. Bitcoin Price Crash To $70,000 A Possibility The crypto founder shared a 2-hour Bitcoin price chart from BitMEX, explaining how the pioneer cryptocurrency could experience this decline and citing macroeconomic factors tied to United States (US) President Donald Trump as a trigger for this price drawdown. Related Reading: End Of The Road For Bitcoin? Analyst Reveals When Price Will Crash To $50,000 Hayes suggests that the market is entering a cooling phase, characterized by a potential retracement to pre-election liquidity levels. A cooling phase is a period during which the price of a cryptocurrency declines and consolidates as the market attempts to stabilize. It typically comes after a cryptocurrency experiences an explosive price increase. Looking at his price chart, the BitMEX Co-founder pinpointed a demand zone around the blue-shaded area between $76,000 and $65,000. This price range serves as a critical support area, where traders expect significant buying interest, enough to prevent further price declines. Hayes believes that the Bitcoin price’s possible decline to $70,000 hinges on Trump’s budget and debt ceiling decision. He suggests that if Trump fails to pass a budget that increases spending and raises the debt ceiling, then further market capitulation could occur. This means that the market may undergo a rapid sell-off by a large number of investors, triggering a panic that could lead to further declines in the Bitcoin price. Additionally, if Trump’s influence over the Republican Party weakens, Hayes indicates that market uncertainty could grow, potentially triggering a continuation of the current Bitcoin downturn. Moreover, a debt ceiling reduction could negatively impact the market’s liquidation and fuel more price fluctuations. Overall, Haye’s bearish outlook for Bitcoin is tied to Trump’s fiscal influence. The BitMEX Co-founder suggests that, for now, the market can only “chill out, retrace, and wait.” BTC’s 3-Day Decline Marks Highest Since FTX Crash According to MetaEra, the recent 3-day decline in the Bitcoin price is the highest crash seen since the FTX fiasco in 2022. In the first three days of this week, Bitcoin recorded a 12.6% drop in value, pushing it down to its current price of $86,227. Related Reading: Bitcoin Price Prediction: Analyst Charts Roadmap To $117,000, What You Should Know MetaEra revealed that the widespread market sell-off could be attributed to the negative sentiment and disappointment over President Trump’s lack of swift action regarding his promises to the crypto community. Prior to his election, Trump indicated a strong interest in creating a national Bitcoin Reserve and tightening fiat liquidity conditions. With no mention of plans concerning these crucial initiatives, uncertainty looms, leading to a weakened market sentiment. Featured image from Adobe Stock, chart from Tradingview.com
Five states' crypto efforts faltered as Texas advances and Utah nears a final vote, leaving the state-level push for digital asset reserves with mixed results.
US Democratic Congressman Sam Liccardo introduced a bill on Feb. 27 to prevent government officials and their families from profiting from cryptocurrencies, including memecoins. The proposed legislation, known as the Modern Emoluments and Malfeasance Enforcement (MEME) Act, has gained support from multiple Democratic colleagues and is designed to “make corruption criminal again.” If passed, the […]
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The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.