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Bitcoin Rises Above $97K as Stablecoin Inflows Power Market Rally

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  • May 3, 2025
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Bitcoin rose above $97,000 on Friday, propelled by a huge injection of liquidity into the stablecoin market. In April, the market cap of the stablecoin market increased by 2.2% to $238 billion, with USDT and USDC taking the lead with market cap gains of $2.5 billion and $1.2 billion, respectively. This increase in stablecoin liquidity has previously been associated with Bitcoin price appreciation, and the current trend implies sustained higher pressure for the cryptocurrency. Moreover, long-term Bitcoin investors have stockpiled more than 254,000 BTC at an average price of $95K, which is a reflection of strong market conviction. The synergy between higher stablecoin inflows and a turn in profit for short-term holders can be a sign of the start of a bullish trend for Bitcoin. KEY LOOKOUTS • USDT and USDC market caps increasing by a total of $3.7 billion over the last week indicate increasing liquidity within the crypto space, which tends to foreshadow rallies in Bitcoin prices.  • With 254,000 BTC being held at an average price point of $95K, long-term investors are demonstrating faith in Bitcoin that could dissuade future selling pressure. •  The market cap of USDC increased by 3.07% in April, reaching an all-time $62.1 billion and rising to 26.0% market share, hinting at higher diversification of the stablecoin market. •  A return to profitability for short-term Bitcoin holders with durations longer than one month may signal diminishing selling pressure and point towards the beginning of a wider bullish trend. The price of Bitcoin at over $97,000 is due to a significant surge in liquidity in stablecoins, with USDT and USDC witnessing an aggregate market cap increase of $3.7 billion in the last week. Traditionally, such capital inflows have been responsible for driving price pressure on Bitcoin upwards, suggesting an extension of the rally. Long-term investors have displayed resilience, accumulating 254,000 BTC at an average of $95K, which also assists in supporting the market. USDC has also increased market share, while short-term investors are coming back into profit, lowering selling pressure and potentially initiating the beginning of a new bullish cycle for Bitcoin. Bitcoin’s recent surge past $97,000 is driven by a spike in stablecoin liquidity, with USDT and USDC recording huge market cap gains. Increasing support from long-term holders and the return to profit for short-term holders are signs of robust market confidence, which could be the beginning of a bullish trend for Bitcoin. •  Bitcoin’s price surged past $97,000, moving towards the $100,000 mark with favorable market dynamics. •  The market capitalization of the stablecoin market rose by $5 billion in April to $238 billion, fueled by USDT and USDC inflows. •   USDT’s market capitalization went up by $2.5 billion, while USDC’s rose by $1.2 billion during the last week, indicating a liquidity surge. •  USDC’s market capitalization rose 3.07% in April to an all-time high of $62.1 billion and increased its market share to 26.0%. •   USDT’s market capitalization rose 2.26%, its 20th monthly increase in a row, and cementing its 75.2% control on centralized exchanges. •  Previous experience suggests that the rise in stablecoin market capitalizations has been correlated with Bitcoin price rises, hinting at possible further upwards pressure. •  Long-term investors have stockpiled more than 254,000 BTC at an average price of $95K, with confidence and little risk-taking evidenced. Bitcoin’s recent breach past $97,000 is fueled by growing stablecoin liquidity, particularly with USDT and USDC experiencing notable growth. The more capital that pours into the crypto market, the better it is for Bitcoin, as it continues to stay on its upward trend. The growth in the stablecoin market over the last few weeks is a testament to a broader sentiment of confidence and optimism, with investors more and more seeking to enter or consolidate long positions in the crypto market. BITCOIN DAILY CHART PRICE CHART SOURCE: TradingView In addition to these inflows, Bitcoin’s long-term holders are also demonstrating firm conviction, continuing to hold the cryptocurrency even with the ups and downs in the market. Investors committed to holding Bitcoin in the long term providing stability to the market, thanks to this confidence from long-term holders. Once short-term holders start coming back into profitability, overall sentiment is tilting towards potential growth and many are viewing this as a positive indicator for Bitcoin’s future performance. TECHNICAL ANALYSIS Bitcoin’s recent breakout over $97,000 is indicative of strong bullish pressure, and support and resistance levels are coming into focus. Stablecoin liquidity has in the past been a good indicator of upward pressure on the price of Bitcoin, and the recent growth in market caps of USDT and USDC is an indication that market participants are positioning for higher prices. The capacity of Bitcoin to pierce earlier resistance levels signifies the continuation of the upward trend, while the significant accumulation by long-term holders and the reversion of profit for short-term holders also affirm the possibility of sustained upward price action. Should Bitcoin be able to regain the $100,000 level, it may catalyze more buying pressure and consolidate the bullish perspective. FORECAST Bitcoin’s resilience to climb above $97,000, in tandem with the expanding liquidity of the stablecoin market, indicates further upside potential. If selling pressure continues to dissipate from USDT and USDC flows, Bitcoin may be ready to push past the $100,000 mark, potentially hitting new all-time highs. Furthermore, the belief demonstrated by long-term holders as well as the short-term holders making a return to profitability will definitely subdue selling pressures and enhance buying sentiments. This pattern, combined with the continued growth in stablecoin market capitalizations, validates the prospects for continued upward momentum in the weeks ahead. Conversely, Bitcoin may experience some resistance to continuing its path higher if conditions in the markets shift or if the stablecoin liquidity influx slows. Any meaningful sell-off by short-term holders realizing profits can trigger a short-term pullback, maybe challenging the $90,000 support level. Also, factors from outside markets, like regulatory shifts or macroeconomic issues, may inject volatility, leading to a price fall in Bitcoin. But as long as

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Crypto Ethereum

Ethereum Price Comes Under Pressure in Light of Pectra Upgrade Slippages and Bear Market Mood

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  • March 8, 2025
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Ethereum’s price has been pressured of late, falling to some $2,150 with the Market Value to Realized Value (MVRV) metric below 1, reflecting a pull back to the undervalued territory. This slide follows setbacks for the Pectra upgrade on Holesky and Sepolia testnets that pushed back the mainnet upgrade. The issues are being worked on by the developers, but if ETH doesn’t bounce above $2,200, then it has chances of falling lower to $1,500. Institutional investors, in spite of the bearishness, have been buying ETH, which reflects a chance for a bounce as soon as the upgrade issues are addressed. KEY LOOKOUTS • Pectra upgrade issues on Holesky and Sepolia testnets, yet to be fixed, could slow down Ethereum mainnet upgrade and influence market mood. • Ethereum’s MVRV dipped below 1, indicating ETH is getting closer to its mean cost basis and potentially the lower end of the recovery zone. • Should Ethereum not take out $2,200, however, it then risks plummeting further to stronger support levels down at $1,500 that could trigger increased bearish sentiment. • Institutions are continuing to accumulate more ETH, signaling ongoing faith in the long-term price of Ethereum amidst short-term weak prices. Ethereum is also experiencing major challenges, mainly caused by delays in the Pectra upgrade on the Holesky and Sepolia testnets, which are important for the mainnet update. This has been responsible for bearish sentiment in the market, as seen in the decline of Ethereum’s Market Value to Realized Value (MVRV) ratio to below 1, indicating that the price is getting close to the average cost basis of investors. If Ethereum is not able to re-take the $2,200 resistance zone, it may be at risk of sliding further towards the crucial support level of $1,500. While the price is weak now, institutional investors are aggressively buying ETH in this downturn, hinting that they have faith in its long-term prospects and signaling a potential reversal once the issues with the upgrade are solved. Ethereum is facing delays in the Pectra upgrade, leading to a price drop towards the $2,150 level. If it does not recover above $2,200, ETH can fall to $1,500, although institutional accumulation indicates long-term growth potential. • Pectra upgrade problems on Holesky and Sepolia testnets have led to delays in Ethereum’s mainnet upgrade, which has impacted market sentiment. • Ethereum’s Market Value to Realized Value (MVRV) ratio fell below 1, which indicates that the price is close to the investors’ average buying cost, which might be a buy signal. • Ethereum has dropped to $2,150 and is at risk of more declines if it doesn’t break the resistance of $2,200. • Ethereum might go down further if it can’t bounce back above $2,200 and might go down further towards the next strong support level of $1,500. • In spite of recent price declines, institutional investors have seen a substantial rise in ETH accumulation, indicating faith in Ethereum’s long-term prospects. • The Relative Strength Index (RSI) and Stochastic Oscillator are indicating bearish momentum, which indicates a further downtrend unless a significant reversal takes place. • A daily candlestick close above $2,850 would negate the bearish scenario, indicating the possibility of a near-term price recovery. Ethereum is presently encountering issues as a result of delay in the Pectra upgrade, which has caused a hold-up in developing its mainnet. The upgrade, which offers considerable enhancements such as account abstraction and improved staking features, has faced technical difficulties during the test runs on the Holesky and Sepolia testnets. These have caused a bearish sentiment to arise in the market, where the price of Ethereum has suffered. Notwithstanding the hiccups, developers are in the process of fixing the problems and moving towards the successful rollout of the upgrade, which may make Ethereum more functional and scalable. ETHEREUM DAILY PRICE CHART CHART SOURCE: TradingView Meanwhile, institutional investors have maintained interest in Ethereum, stockpiling additional tokens in spite of the price swings. This implies that there remains faith in Ethereum’s long-term worth, with these large investors believing that it has the ability to grow once the upgrade problems are solved. Although the market will likely stay wary in the short term, Ethereum’s continuous development and institutional investor support growth indicate that it might recover eventually and solidify its place within the cryptocurrency environment. TECHNICAL ANALYSIS Ethereum is under the influence of a bear trend currently, as the price finds it difficult to cross the resistance point of $2,200. The MVRV ratio going below 1 indicates that Ethereum is drawing closer to investors’ average cost basis, a region that generally is a point of accumulation. Yet, major technical gauges such as the Relative Strength Index (RSI) and the Stochastic Oscillator are indicating ongoing bearish momentum, which indicates that a further drop towards the $1,500 support level is imminent if the price cannot regain bullish momentum. A daily close above $2,850 would negate the prevailing bearish view and could indicate a reversal. FORECAST Despite the current difficulties, there is hope for a reversal if Ethereum is able to break the resistance at $2,200. Institutional investors have been busy buying up ETH, expressing faith in its long-term outlook. Once the Pectra upgrade is effectively implemented, it could introduce new functionality and improvements to the network, fueling optimism. If Ethereum is able to breach the $2,200 level, then the next potential target would be the $2,850 level, which would negate the prevailing bearish perspective and indicate a possible price bounce. The price of Ethereum is under strong downward pressure as it is unable to breach the $2,200 resistance level. The ongoing setbacks in the Pectra upgrade, coupled with negative market sentiment, have contributed to Ethereum’s MVRV ratio falling below 1, indicating that the asset is underpriced. If Ethereum doesn’t bounce above $2,200, it could continue plummeting to the next significant support level of around $1,500, causing further selling. The Stochastic Oscillator and RSI are also indicating persistent bearish momentum, which implies that the risk of the downside is still dominant in the

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Bitcoin Crypto

Bitcoin Weekly Forecast: Consolidation Ongoing Amid Fading Institutional Demand and Macroeconomic Uncertainty

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  • February 15, 2025
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Bitcoin has consolidated between $94,000 and $100,000 over the last ten days, which is a period of indecision in the market. Institutional demand is fading, as seen through a $650.80 million net outflow from US Bitcoin spot ETFs. Its correlation with the S&P 500 is still firm, but it has lost strength in correlation with Gold, as it is not a safe-haven asset but a risk-on asset. The macroeconomic backdrop, such as a hotter-than-anticipated US CPI report and Trump’s move to broker a Russia-Ukraine peace agreement, has introduced some volatility into the price action of BTC. Although technicals point to slightly bearish momentum, a conclusive breakout above $100,000 or below $94,000 might pave the way for Bitcoin’s next significant move.  KEY LOOKOUTS • Bitcoin spot ETFs had a $650.80 million net outflow, reflecting waning institutional interest, which might propel additional price corrections. • US CPI releases and Federal Reserve rate expectations are influencing Bitcoin’s price, elevating market volatility and putting off a potential bullish breakout. • The correlation between Bitcoin and Gold has declined, with institutions going long on the precious metal due to regulation fears, volatility, and increasing fiat devaluation threats. • A clear break below $94,000 would precipitate a fall to $90,000, while a break above $100,000 could be followed by a test of $106,012. Bitcoin’s price is still in consolidation between $94,000 and $100,000, and declining institutional demand after spot ETFs experienced a $650.80 million net outflow. Macroeconomic tensions, such as above-predicted US CPI figures and Federal Reserve policy changes, are fueling market volatility. In the meantime, Bitcoin’s correlation with Gold has declined, as institutions favor the precious metal because it remains stable amidst fiat devaluation fears. Technically, BTC is in a critical juncture—falling below $94,000 may move prices towards $90,000, while breaking above $100,000 may propel a rally towards its January 31 high of $106,012. Bitcoin is still consolidating between $94,000 and $100,000, as weakening institutional demand and macroeconomic uncertainties put pressure on it. A break above $100,000 could instigate a rally, but a fall below $94,000 could lead to further falls. • BTC has been ranging between $94,000 and $100,000 over the last ten days, indicating market indecision. • US Bitcoin spot ETFs have seen a net outflow of $650.80 million, reflecting diminishing institutional appetite and probable downside threats. • Increased US CPI figures and delayed Federal Reserve rate reductions have boosted market uncertainty, influencing the price actions of Bitcoin. • BTC is trending more like a risk-on asset, with tighter correlation to the S&P 500 and a looser association with Gold. • Gold has surpassed Bitcoin in 2024 as institutional and sovereign wealth fund investment lifted its market capitalization. • RSI of 45 and a bearish MACD crossover indicate BTC could experience further corrections if it cannot break levels of resistance. • A price rise above $100,000 can trigger a rally to $106,012, while falling below $94,000 could see a plunge towards $90,000. Bitcoin has been ranging between $94,000 and $100,000 over the last ten days, indicating market uncertainty as institutional demand falters. US Bitcoin spot ETFs saw a large net outflow of $650.80 million, indicating decreased interest from institutional investors, which may cause further downward pressure. Moreover, macroeconomic factors, including increasing US CPI data and delayed Federal Reserve rate reductions, have introduced volatility into the market. Bitcoin is increasingly acting as a risk-on asset, with a higher correlation with the S&P 500 and decreasing correlation with Gold. Institutional investors still prefer Gold, which has gained $1.5 trillion in market capitalization this year, further diminishing Bitcoin’s safe-haven appeal. BITCOIN Daily Price Chart TradingView Prepared by ELLYANA Bitcoin’s price is still in consolidation between $94,000 and $100,000, as the traders wait for a break. Institutional appetite has slowed, as evident from the $650.80 million net Bitcoin spot ETF outflow, with fears of sustaining bearish pressure. Macroeconomic measures such as US inflation data and delay in rate cuts by the Federal Reserve continue to affect BTC’s price movement. If Bitcoin surges above $100,000, it might recover its bullish trend and reach $106,012, but a fall below $94,000 can initiate a downfall towards $90,000. As long as market uncertainty lingers, traders need to pay close attention to important technical metrics and macroeconomic events for the next big move. TECHNICAL ANALYSIS Technical indicators of Bitcoin are bearish as it is still consolidating between $94,000 and $100,000. The Relative Strength Index (RSI) is at 45, reflecting slight bearish momentum after being pushed away from the middle-of-the-road 50 level. The Moving Average Convergence Divergence (MACD) has also created a bearish crossover with red histogram bars pointing towards further possible corrections. A break below the critical support level of $94,000 by Bitcoin can lead to a fall towards the psychologically significant $90,000 level. On the other hand, a breakout above $100,000 would change momentum in the direction of the bulls, propelling BTC towards its January 31 high of $106,012. Traders will want to keep a close eye on volume and market sentiment for confirmation of the next large move. FORECAST If Bitcoin breaks above the top end of its current range of consolidation at $100,000, it might set off a bullish rally. A successful break with high buying volume would drive BTC towards its former high of $106,012, its last seen on January 31. Additional momentum might see a retest of higher resistance points at $110,000 as institutional and retail traders regain confidence. Macro economic influences, like a weaker US CPI report or a change in Federal Reserve policy in favor of rate cuts, would be the catalysts for Bitcoin’s upside. Moreover, increased adoption by sovereign players and ETFs holding more Bitcoin might lend long-term bullish support. In case Bitcoin does not hold above $94,000, bear pressure may gain strength to take it down towards the next psychological support level of $90,000. Deteriorating institutional appetite, as seen in the recent $650.80 million ETF outflows, might add to downside risks. Furthermore, if macroeconomic volatility continues—i.e., persistently high inflation, tardy Fed rate

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Crypto Ethereum

Ethereum Price Forecast: Pectra Upgrade Gives Hope as ETH Tests Critical Resistance at $2,817

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  • February 15, 2025
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The Ethereum Pectra upgrade, which will be deployed to testnet on February 24 and March 5, has given hope to investors as ETH tests the pivotal $2,817 resistance. The upgrade comes with significant upgrades, such as converting wallets into smart accounts, improving validator experience, and opening up data availability. Whereas Ethereum’s rise in gas limit has resulted in cheaper transaction prices, total volume of transactions remains low owing to general market trends. Options data, however, shows a transformation from bearishness to guardedly optimistic mood, with a growing likelihood that ETH will reach $4,000 by June. Technical factors such as RSI, Stochastic, and MACD present mild bullish sentiments, but any fall below $2,200 would nullify the trend. KEY LOOKOUTS • February 24 and March 5 testnet launch may propel sentiment and shape ETH’s price direction over the next few weeks. • ETH’s consistent rejection at this level positions it as an important breakout point that may establish short-term bullish or bearish momentum. • Growing optimism in Ethereum options data points towards a bullish trend with a growing probability of ETH reaching $4,000 by June. • RSI, Stochastic, and MACD indicate weak bullish momentum; yet, a decline below $2,200 will negate the bullish scenario. The next Pectra upgrade, which is scheduled for testnet deployment on February 24 and March 5, is one of the important events that are likely to significantly influence Ethereum’s price action. With ETH testing the important $2,817 resistance level once again, market participants are monitoring closely for a possible breakout that can change the market sentiment into a bullish trajectory. Options market statistics show increasing optimism, with a higher likelihood of ETH attaining $4,000 by June. Technical indicators RSI, Stochastic, and MACD show low bullish momentum, but any fall below $2,200 could negate this thesis, making it important that traders closely observe price action. Ethereum’s Pectra upgrade, scheduled for testnet release on February 24 and March 5, is fueling investor hopes as ETH retests the $2,817 resistance. Options data indicate an increasing likelihood of ETH reaching $4,000 by June, while technical indicators point to moderate bullish momentum. But a fall below $2,200 would render this trend null. • Ethereum’s Pectra upgrade will go live on the Holesky and Sepolia testnets on February 24 and March 5, with a possible mainnet launch around April 8. • The upgrade consists of wallet metamorphosis to smart accounts, validator UX enhancements, and increased data availability, making Ethereum more efficient. • Validators raised Ethereum’s gas limit from 30M to 36M, resulting in reduced transaction costs, but transaction volume is still below previous highs. • ETH has consistently tried and failed to overcome this resistance, and thus it is an important level that can decide the short-term price direction. • Statistics indicate growing optimism among investors, with an increased likelihood of ETH reaching $4,000 by June, higher than the previous estimates. • RSI, Stochastic, and MACD indicate modest bullish momentum, with ETH struggling to hold gains above the significant resistance level. • A fall below $2,200 would reverse the uptrend, so it is a very important support to monitor over the next few weeks. Ethereum’s eagerly awaited Pectra update, which goes live on testnets Holesky and Sepolia on February 24 and March 5, is making waves in the crypto world. The update brings smart accounts, validator experience improvements, and increased data availability to Ethereum, which makes it more scalable and efficient. Consequently, the sentiment of the investors is slowly changing, and ETH is again testing the key $2,817 resistance mark, a fundamental price level which has long remained a solid boundary. Even though the gas charges have been lately cut, trade volumes are lower than anticipated and are probably based on overall market conditions and macroeconomic variables. Yet, a successful testnet launch of Pectra would reinforce investor confidence, which could lead to a bullish breakout in the next few months. ETHEREUM Daily Price Chart TradingView Prepared by ELLYANA Market sentiment in the crypto options market shows a conservative but increasing optimism, with the likelihood of ETH reaching $4,000 by June. RSI, Stochastic, and MACD hint at mild bullish momentum, signaling a potential uptrend if ETH can break above the $2,817 resistance. However, traders must stay cautious, as a drop below $2,200 could invalidate the bullish scenario, leading to further downside pressure. With the testnet launch on the horizon, Ethereum investors need to pay close attention to market responses since the Pectra upgrade has the potential to be a strong catalyst for ETH price action in the short term. TECHNICAL ANALYSIS Ethereum technical analysis shows modest bullish pressure, with important indicators touting a possible upward breakout. The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) have both bounced off their respective moving averages, which implies mounting buying pressure. The Moving Average Convergence Divergence (MACD) is also probing its red moving average line, as histogram bars move above the neutrality level, pointing to a likely turn towards bullish trend. ETH is now probing the $2,817 resistance level, which has been strong in the past. A breach above this level may validate the bullish momentum and propel ETH toward higher resistance levels. But if ETH is unable to hold above this critical point and breaks down below $2,200, then the bullish case may be proved wrong, opening the way for additional selling pressure. The technical indicators must be closely watched by traders for verification of the next trend direction. FORECAST Ethereum’s Pectra upgrade and recovering investor mood might propel ETH into higher price territory, with the possible breakout over $2,817 being the most significant trigger. In the event ETH manages to close over this resistance, it may accelerate and look towards $3,000–$3,200 in the near term. Additionally, option market sentiment indicates a growing possibility of reaching $4,000 for ETH by June, which shows growing confidence among investors. Technical analysts like RSI, Stochastic, and MACD also favor this view, indicating a possible continuation of the bullish trend if ETH continues its ascent. Moreover, reduced gas fees and

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Crypto Ethereum

Ethereum Price Forecast: Will ETH Plunge to $1,200 Amid Trade War Tensions?

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  • February 8, 2025
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Ethereum’s price is facing downward pressure as global trade war tensions rise following former U.S. President Donald Trump’s announcement of reciprocal tariffs on multiple countries. The cryptocurrency declined by 4%, mirroring losses in the stock market, with the S&P 500 also dropping significantly. Analysts are warning that if Ethereum breaks below the $2,150 support level and a descending channel’s lower boundary, it could drop to $1,200. However, bearish momentum, as indicated by RSI and Stochastic Oscillator readings, is not translating into net inflows for Ethereum ETFs, which have been better than Bitcoin ETFs, at least. The coming week will be critical as market sentiment is expected to shift with Trump’s trade policies, which are going to impact both traditional and digital assets. KEY LOOKOUTS • A breakdown below this key support level may lead to a sharp fall toward the $1,200 price zone. • The market is waiting for Trump’s next move on reciprocal tariffs, which may further increase selling pressure on ETH and other risk-sensitive assets. • Ethereum’s price is increasingly mirroring the S&P 500, meaning further stock market losses could accelerate ETH’s decline in the coming days. • Despite the bearish trends, Ethereum ETFs have performed better than Bitcoin ETFs, which may indicate investor confidence that can stabilize prices. Ethereum’s price trend is still uncertain as it is hovering near key support levels amidst rising global trade tensions. Former U.S. President Donald Trump’s announcement of reciprocal tariffs has triggered a market-wide sell-off, with Ethereum falling 4% and the S&P 500 plummeting. Failure to hold at the crucial support level of $2,150 could send ETH to a subsidence towards $1,200. But ETF inflows have been increasing lately; this does gain some institutional confidence and signals stabilization in prices. With these correlations moving up between Ethereum and traditional markets, economic developents and decisions of Trump will be the next points in the deciding direction for Ethereum. Ethereum is under downward pressure as Trump’s tariff plans rattle markets, and ETH has fallen 4% with the stocks. If it breaks the support level of $2,150, then a fall to $1,200 is likely. Meanwhile, strong ETF inflows indicate institutional confidence, which may stabilize the price. • ETH fell sharply after Trump announced reciprocal tariffs, similar to the stock market losses. • If ETH breaks below this critical level, it may lead to a further fall to $1,200. • Price action of Ethereum tracks the S&P 500 quite closely as its linkages to traditional markets intensify • Market mood remains bearish on account of heightened trade tension and potential jolts in the economy. • Despite sharp declines, net inflows of more than $420 million are witnessed in the case of Ethereum ETFs and surpassed Bitcoin. • RSI and Stochastic Oscillator signals a continuation of bearish sentiment. The latter further increases the prospects of going south. • The ETH can bounce back and make its way toward higher values if it sustains above the support and breaks through the resistance line at $2,817. Ethereum’s price continues to come under strong bearish pressure due to former U.S. President Donald Trump’s recent announcement of imposing reciprocal tariffs on several countries. This sent ripples in global markets. It has shed 4%, following the traditional market losses. For instance, S&P 500 plummeted highly. This would mean that if Ethereum fails to hold the strong support level at $2,150, then the decline may easily reach the next target of $1,200. Technical indicators like RSI and Stochastic Oscillator confirm bearish momentum; hence, ETH may fail to regain upward momentum unless market sentiment somehow improves. Ethereum Daily Price Chart TradingView Prepared by ELLYANA Despite the negative price action, Ethereum ETFs have outperformed Bitcoin ETFs, recording over $420 million in net inflows compared to Bitcoin’s $32.5 million. Institutional investors still see value in Ethereum despite short-term volatility. However, ETH remains highly correlated with the stock market, meaning further declines in equities could accelerate its downward trend. Key levels on the charts which traders must keep an eye open for are at support and resistance, with the bounce from this $2,150 zone and a break over $2,817 making for the big, next, substantial price movements by Ethereum. TECHNICAL ANALYSIS Ethereum’s technical is bearish since the current fall is at testing the lower edge of the downward channel. Thus, failure in holding that very important support in the vicinity of $2,150 can allow a steeper fall into $1,200. The RSI and Stochastic Oscillator are well below their respective neutral levels, which means a strong bearish momentum is intact. Furthermore, in the past 24 hours, Ethereum had liquidations in futures worth $65.43 million, an indicator of high market uncertainty. If ETH is able to rebound off the support and break the $2,817 resistance level, it can move towards the reversal, likely hitting $4,500 long-term. FORECAST Ethereum has a pretty good chance for a strong pullback if this holds the significant support levels. If ETH was able to jump off the supporting zone at around $2,150 and pass the resistance marked at $2,817 then it could prove to be quite a reversal move. A bounce above the line of the downward channel could see a further upside towards the psychological level of $4,500. Institutional interest remains strong, as evidenced by the recent $420 million net inflows into Ethereum ETFs, suggesting that long-term investors see value in ETH despite short-term volatility. Additionally, if broader market sentiment improves and risk assets recover, Ethereum could benefit from a renewed bullish phase. Ethereum faces significant risks if it fails to hold the crucial $2,150 support level. A break below this level might extend the sell-off, pushing ETH down toward $1,200. The increasing correlation of Ethereum with the S&P 500 indicates that further declines in traditional markets will drag their prices lower and keep crypto prices lower as well. Bearish technical signs for the RSI and Stochastic Oscillator mainly indicate selling pressure over here. Moreover, if Trump’s trade policies continue to intensify global economic tensions, risk assets such as Ethereum may

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Bitcoin Crypto

Bitcoin and the U.S. Sovereign Wealth Fund: Strategic Move or Speculation?

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  • February 4, 2025
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President Donald Trump has signed an executive order to create the first-ever U.S. sovereign wealth fund, aimed at monetizing national assets for economic development. Details of the fund’s structure are yet to be finalized, but speculation in the crypto community is growing regarding the possible inclusion of Bitcoin. Bitwise Senior Investment Strategist Juan Leon added that Bitcoin should be added as a strategic reserve asset to the fund following Trump’s recent initiative to form a U.S. digital asset stockpile. After the announcement, Bitcoin immediately rose above the $100,000 threshold, which shows that the markets remain optimistic regarding the cryptocurrency. With the Treasury and Commerce departments getting ready for their investment plan, eyes are on if Bitcoin will be a key part of America’s financial future. KEY LOOKOUTS                          • The Treasury and Commerce departments have 90 days to submit their sovereign wealth fund plan, which is expected to be fully established within 12 months. • There are growing speculations regarding whether the fund will put Bitcoin inside, making it a strategic reserve asset of the United States. • Bitcoin shot past $100,000 after the announcement, which reflected strong investor confidence and anticipation regarding the fund’s impact on digital assets. • The fund will monetize U.S. national assets to enhance economic development, possibly reshaping the country’s financial strategy for long-term growth. The establishment of a U.S. sovereign wealth fund is a significant shift in the country’s economic strategy, with speculation mounting over Bitcoin’s potential inclusion. President Trump issued an executive order that requires the Treasury and Commerce departments to design a comprehensive plan within 90 days, stating investment strategies and governance structures. This move was a follow-up to his earlier initiative to form a digital asset stockpile and has further been fueling discussion about Bitcoin’s role as a strategic reserve asset. The crypto market reacted vigorously, pushing Bitcoin beyond the $100,000 mark, signifying increased investor confidence. Bitcoin may be included in the fund, fundamentally altering how the United States would use digital assets to further national wealth and economic growth. Speculation over Bitcoin’s use in a potential U.S. sovereign wealth fund, following President Trump’s executive order aimed at creating the wealth fund, has bred optimism in the crypto market. Bitcoin surged past $100,000. It is likely the first asset in this financial play that will reshape America’s financial strategy.”. • President Donald Trump signed an order to create the first ever U.S. sovereign wealth fund for economic development. • The Treasury and Commerce departments are tasked with creating a strategic plan within 90 days, with full implementation expected within 12 months. • Crypto experts, including Bitwise strategist Juan Leon, believe Bitcoin could be added to the fund as a strategic reserve asset. • The order follows Trump’s recent initiative to create a U.S. digital asset stockpile, further fueling Bitcoin inclusion rumors. • Bitcoin surged past $100,000 following the announcement, reflecting strong investor optimism about potential government adoption. • The fund aims to monetize U.S. national assets, potentially reshaping financial strategies and long-term wealth management. • As for the Bitcoin inclusion, this is purely speculative, and the final plan of the Treasury and Commerce departments will determine the fund’s composition and investment strategy. President Donald Trump’s executive order to establish a U.S. sovereign wealth fund has caused wide speculation, especially in the cryptocurrency community. Charged with designing the structure of the fund, the Treasury and Commerce departments have 90 days to present a comprehensive plan that includes investment strategies and governance frameworks. Although the order does not mention Bitcoin, its possible addition has been a hot topic, especially after Trump’s recent move to create a U.S. digital asset stockpile. According to Bitwise senior investment strategist Juan Leon, Bitcoin could be added as a strategic reserve asset, further integrating digital currencies into the country’s economic framework. BITCOIN Daily Price Chart TradingView Prepared by ELLYANA The announcement has already had a significant impact on the crypto market, with Bitcoin surging past the $100,000 mark in response to growing optimism. If the U.S. government includes Bitcoin in its sovereign wealth fund, it could mark a historic shift in financial policy, positioning digital assets alongside traditional reserves. This could also impact global economic trends as other countries will look at the option of using Bitcoin in their financial planning. As the news of the sovereign wealth fund is unfolding, all eyes are still on how the U.S. will use this move to gain a better position in the economic front. TECHNICAL ANALYSIS Technical analysis plays a significant role in understanding Bitcoin’s price movement after President Trump’s announcement of the sovereign wealth fund. As Bitcoin touched above the $100,000 level, key gauges like moving averages, RSI, and Fibonacci retracement levels are carefully monitored by the traders. Since there is such a rapid hike in the price, support seems to be near the level of $98,000 and resistance around the value of $105,000. The volume study also reveals higher buying activity with rising confidence from the investors’ end. If Bitcoin maintains above critical support levels, a further upward surge is expected, but a breakdown may lead to short-term corrections. As the speculation regarding the inclusion of Bitcoin in the sovereign wealth fund remains, traders are expected to track breakout patterns and volatility spikes that may be beneficial for price movement. FORECAST Bitcoin manages to regain the $100,000 mark after President Trump issues an executive order, and market sentiment remains primarily bullish. In fact, if Bitcoin gets officially considered to go into the sovereign wealth fund, institutional interest could erupt, driving prices even higher. The key resistance levels to watch are $105,000 and $110,000; on a breakout, Bitcoin may surge towards $120,000 in the next few weeks. Increasing trading volumes and strong accumulation by whales further lends to this bull. However, the positive macroeconomic environment and regulatory clarity regarding digital assets could also be the fuel for Bitcoin’s continued upward trend. Bitcoin is still a very volatile asset, and any corrections should not be ignored. If Bitcoin cannot hold

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