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Bitcoin’s Road to Recovery: Will Trump’s US Strategic Bitcoin Reserve and the White House Crypto Summit Trigger a Rebound?

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  • March 8, 2025
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Bitcoin remains subject to volatility and uncertainty, its price falling more than 5% this week, currently sitting at around $88,900. Although a surprise statement by President Trump that the US Strategic Bitcoin Reserve would be established triggered a temporary rally, the market soon corrected, resulting in substantial liquidations. Institutional outflows, increasing geopolitical tensions, and economic worries, including stagflation threats, have added to the bearish pressure on Bitcoin. While the first-ever White House Crypto Summit is underway, investors are optimistic that cryptocurrency regulation and innovation talks may offer a catalyst for a turnaround. But the fate of the market depends on the Summit’s results, and any failure to take concrete steps could further discourage investor. KEY LOOKOUTS • Bitcoin’s recent volatility has led to $1.67 billion in liquidations, indicating continued market uncertainty and possibility of further price volatility. • The result of the first White House Crypto Summit may have a profound effect on Bitcoin’s regulatory environment, impacting investor sentiment and price action. • President Trump’s executive order to create a Strategic Bitcoin Reserve may indicate growing institutional participation in Bitcoin, impacting its long-term value and adoption. • Ongoing redemptions from Bitcoin ETPs and ETFs demonstrate fading institutional demand, which can create additional pressure to the downside if the trend continues. Bitcoin is now undergoing a phase of increased volatility, with large market movements and liquidations totaling $1.67 billion this week alone. President Trump’s launch of his Strategic Bitcoin Reserve via an executive order has created momentary optimism, but this is followed by a correction in the market, citing the volatile nature of cryptocurrency prices. The ongoing White House Crypto Summit is a critical event in that it might bring regulatory illumination and more pointed guidance that will enhance investor sentiment. Still, with institutional flows still out, Bitcoin is facing increasing difficulties in terms of continued demand, and its price action is uncertain. How these things play out in the next few weeks will be pivotal in defining Bitcoin’s direction. Bitcoin is subject to great volatility, with recent market movement and $1.67 billion in liquidations. Whether President Trump’s Strategic Bitcoin Reserve and the White House Crypto Summit are successful in their endeavors can influence the future of Bitcoin, but continued institutional outflows threaten its recovery. • Bitcoin has fallen more than 5% this week to trade at approximately $88,900, under conditions of greater volatility and uncertainty in the market. • The recent market volatility has resulted in $1.67 billion worth of liquidations, reflecting the volatile nature of Bitcoin’s price action. • President Trump issued an executive order to establish a US Strategic Bitcoin Reserve, with the goal of keeping Bitcoin as a store of value and improving the country’s crypto strategy. • The inaugural White House Crypto Summit, aimed at cryptocurrency regulation and innovation, is viewed as a possible trigger for more defined policy and market calm. • Bitcoin ETFs and ETPs have seen notable outflows, totaling $329.90 million, which are indicative of diminishing institutional appetite for the cryptocurrency. • Bitcoin is holding up at the 200-day Exponential Moving Average at $85,843, and further falls may be in the offing if this support is breached. Bitcoin is now confronted with huge uncertainty, with recent market fluctuations raising alarm in the minds of investors. President Trump’s decision to establish a Strategic Bitcoin Reserve via an executive order has added a new element to the crypto market, seeking to make Bitcoin a more stable asset in the U.S. financial system. This reserve, which will be used to store Bitcoin as a store of value, is an indication that the government is serious about incorporating digital assets into its overall economic plan, which could lead to more institutional participation in the future. BITCOIN DAILY PRICE CHART CHART SOURCE: TradingView At the same time, the inaugural White House Crypto Summit is making waves, as it will convene industry leaders to discuss the future of cryptocurrency regulation and innovation. With talks set to frame the regulatory environment for digital assets, the summit might bring much-needed clarity and sway investor sentiment. Institutional withdrawals from Bitcoin ETFs are still underway, yet investors still harbor an increasing sense of guarded optimism that government policy, combined with clearer policies, will ultimately result in a more stable and benign environment for cryptocurrencies. TECHNICAL ANALYSIS Bitcoin is now testing major support levels, specifically around the 200-day Exponential Moving Average (EMA) of $85,843. The price has failed to regain momentum upwards after being rejected close to the $95,000 mark, with the Relative Strength Index (RSI) indicating bearish signals, which is a sign of downward pressure. The Moving Average Convergence Divergence (MACD) indicator also indicates indecision in market sentiment, as no trend direction is evident. As long as Bitcoin defends the $85,000 level, it is likely to seek recovery towards earlier highs, though breaking below will open the window to more loss-making moves in the direction of $73,000. FORECAST If Bitcoin is able to maintain prices above the important support level of $85,000, there is hope for recovery. Upbeat attitude toward President Trump’s Strategic Bitcoin Reserve and the White House Crypto Summit may restore investor confidence, triggering a rally. If Bitcoin is able to break resistance at $95,000, it is likely to push towards retesting the $100,000 mark. Institutional buying may gather momentum as the government becomes more proactive in regulating and embracing digital assets, infusing further upward momentum. But if Bitcoin cannot hold support at the $85,000 level and breaks lower, it may experience further losses. The continuing institutional outflows along with general economic issues such as global market volatility and stagflation concerns add to the pressure. In this case, a test of the next level of support at $73,000 is possible, with additional downside risk if macroeconomic conditions persist and worsen or if market sentiment turns sour after the White House Crypto Summit.

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Bitcoin Crypto

Bitcoin Price Prediction: Volatility Hangs Over Head as White House Crypto Summit Nears

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  • March 5, 2025
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Bitcoin is under increased volatility as it heads into the inaugural White House Crypto Summit, with prices at around $87,600 after stabilizing at $85,000. The summit, which takes place on Friday, is likely to determine future regulation and innovation in the crypto space, creating uncertainty for the market. While that is happening, Bitcoin ETFs also remain in apparent outflows, reflecting poor institutional demand, which may put additional pressure on prices. There is still some optimism, though, as Japanese investment company Metaplanet recently added to BTC holdings, which lifted investor morale. If the $85,000 support level remains, Bitcoin may try to recover, but traders should be wary of possible market volatility. KEY LOOKOUTS • The coming summit has the potential to shape Bitcoin regulations and sentiment, which may result in heightened volatility and define the future of crypto policies. • Bitcoin ETFs saw $217.7 million in outflows this week, which indicates waning institutional appetite, and more price corrections can be expected if the trend continues. • Whether a recovery rally towards $95,000 is feasible will be determined by Bitcoin’s ability to maintain above this critical support, which is situated in line with the 200-day EMA. • Speculators around key events, such as Trump’s crypto position and regulatory changes, should be watched out for by traders since they may trigger sudden price movements and liquidations. The future of Bitcoin is uncertain as the crypto space prepares for possible volatility leading up to the White House Crypto Summit. The event may provide clarity on regulations, which will lead to investor confidence and institutional adoption. However, ongoing Bitcoin ETF outflows indicate a cautious stance among institutional investors, raising concerns about market stability. While corporate investments like Metaplanet’s recent Bitcoin purchase reflect long-term optimism, short-term price movements will likely depend on regulatory outcomes and broader market sentiment. As the industry awaits key policy discussions, traders should prepare for possible fluctuations in the coming days. Bitcoin is susceptible to volatility ahead of the White House Crypto Summit, with investors keenly monitoring regulatory updates. Institutional withdrawals keep weighing on BTC, while support at $85,000 holds the key for a rebound. Market speculation and changing sentiment are likely to generate sharp price moves, and thus caution is advisable for investors. • The historic summit may dictate regulatory policies and market sentiment and, in the process, drive Bitcoin volatility. • BTC fluctuates at $87,600 after rebounding from the $85,000 support, with possible recovery to $95,000 if momentum continues. • Bitcoin spot ETFs experienced $217.7 million of outflows this week, indicating weakening institutional demand and possible further price corrections. • There was a brief rally after Trump’s ‘Crypto Strategic Reserve’ announcement but was wiped out, demonstrating a “buy the rumor, sell the news” effect. • BTC’s capacity to remain above this significant level, which coincides with the 200-day EMA, is important for any prospective bullish action. • Speculative actions surrounding regulatory news and institutional participation may cause sudden price movements and potential liquidations. • The $44 million BTC acquisition by the Japanese investment company sparked optimism, showing that some institutions continue to view Bitcoin as a solid asset. The upcoming White House Crypto Summit marks a significant moment for the cryptocurrency industry, bringing together key industry leaders, policymakers, and investors to discuss the future of digital assets. This event highlights the growing importance of cryptocurrency in the financial sector and signals the government’s increasing involvement in shaping regulations. With the topics of innovation, security, and compliance expected to be discussed, the summit may shape the way that crypto becomes a part of mainstream finance. The involvement of high-profile individuals further adds to the likely shift towards a more regulated and organized crypto environment. BITCOIN Daily Price Chart Chart Source: TradingView That being said, institutional demand for Bitcoin remains one of the most influential drivers of market sentiment at the same time. As some investment companies are expanding their Bitcoin reserves, overall fluctuations in demand are mirroring wider uncertainties within the sector. The shifting regulatory environment, as well as debates surrounding crypto policies at the highest level, may decide the next stage of adoption and integration. As institutions and governments adopt a more formal stance on digital assets, the future effect on the crypto market will be significantly based on the manner in which regulation strikes a balance between innovation and investor protection. TECHNICAL ANALYSIS The crypto industry is at a pivotal juncture as global debate around regulation and adoption builds momentum. The forthcoming White House Crypto Summit is evidence of how digital assets increasingly play a role in mainstream finance as policymakers and industry executives convene to discuss the future of crypto innovation. The gathering underscores the necessity of clear regulatory guidelines to balance security, compliance, and expansion while instilling investor and institutional confidence. As governments and corporations chart their course through this shifting terrain, choices made today may determine the future place of cryptocurrencies within the world economy. FORECAST The price of Bitcoin may experience a bullish push if encouraging news flows from the White House Crypto Summit, especially if the conversation turns in the direction of straightforward and welcoming regulations. A well-defined regulatory environment would increase investor confidence, draw institutional investment, and propel Bitcoin’s acceptance within mainstream finance. Besides that, increased corporate investments, including Metaplanet’s latest Bitcoin buy, suggest some institutions still believe long-term prospects in digital assets. If that type of investment persists, Bitcoin might see fresh demand and price hikes in the near future. To the negative side, institutional participation uncertainty remains the most critical factor. Bitcoin ETFs have shown major outflows, implying deteriorating demand among big players, which would bear down on prices. In addition, regulatory uncertainty and market speculation tend to stimulate volatility, with sudden price fluctuations and potential liquidations impacting traders. In case institutional outflows continue and no firm regulatory support comes from the forthcoming summit, Bitcoin would find it challenging to stay stable and could be subject to further falls in the short term.

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