Market increase after announcing a crypto reserve of short duration
Bitcoin completed the month of February under $ 80,000 and recorded a decline of 17%, the strongest monthly decline since June 2022. This downturn was significantly influenced by the announcement of Trump's trading tariffs on China, Canada and Mexico.
These news triggered a wave of “extreme fear” on the market and led to a broad sale of cryptocurrencies. In addition, Bitcoin ETFs recorded considerable drains of over $ 3 billion within eight days-the largest deduction since its introduction in January 2024. At the same time, interest in Bitcoin seems to be letting. Google Trends data show that the search for “Bitcoin” reached its peak in November 2024, re-election after Trump's re-election and the increase from Bitcoin to $ 100,000. Since then, however, the search volume has decreased to the level before the 4th quarter of 2024.
Announcement of a US crypto reserve strengthens trust
Trumps announcement A strategic crypto reserve of the United States on Sunday, March 2, led to an increase in crypto prices, whereby the market capitalization grew by over $ 300 billion within 24 hours. The strategic reserve is intended to include important digital assets such as Bitcoin, Ethereum, XRP, Solana and Cardano, whereupon Bitcoin price rose by over 11% to $ 94,164, while Ethereum increased by $ 2,516. With the introduction of this national reserve for cryptocurrencies, the new US government has implemented its original promise to accelerate the introduction of cryptocurrencies. This step has catapulted the USA into the ranks of the regions with high crypto progress.
Next, the reactions of the SEC will be observed in this area with its “Crypto Task Force” and the IRS to be controlled on this attitude. The upcoming crypto summit of the White House is expected to give further insights into the government's plans for the crypto sector. This could trigger a domino effect in other countries that rethink their crypto policy and possibly react with more forbearance, which could accelerate the international regulatory changes worldwide.
BTC and ETH recovery: Sign of a new upward trend?
Bitcoin (BTC) is traded in a forecast range of $ 85,000 to $ 102,000, with ETF inflows playing a crucial role in short-term development. Strong inflow data this week could drive the BTC course over $ 100,000 and possibly test $ 102,000. In the meantime, historical halving cycles indicate price consolidation between $ 95,000 and $ 100,000, which positions the March as a construction phase before more pronounced movements in mid-2025. The most important levels to be observed include $ 91,000 as support and $ 100,000 as psychological resistance, whereby a possible decline would test less than $ 85,000, if the pessimistic mood predominates.
Ethereum (ETH) remains with a range of $ 2,300 to $ 2,800, whereby the upward potential is connected to the pectra upgrade, which is expected for the first quarter of 2025. If the progress in the test network improves, ETH could increase in the direction of 3,800 or even $ 4,000. In addition, the development of BTC will significantly influence the movement of ETH-if BTC breaks through the $ 100,000 mark, ETH could increase to $ 2,600 to $ 2,800, while a decline from BTC could drag $ 85,000 ETH to $ 2,200. With an RSI of 27.94, ETH is currently oversold, which indicates a possible recovery when the purchase dynamics are used again. However, if ETH cannot be kept above its 25-day SMA ($ 2,590), there could be further downward movements before a significant recovery occurs.
The development of the crypto market depends on the reaction of China, the measures of the Federal Reserve and the question of whether Trump's regulatory support compensates for the macroeconomic headwind. Crucial developments are expected in the next 30 days, so this period is of crucial importance for the clarity of the market.
