Bitcoin (BTC) is down 6.6% this week to
$87,837, recovering from a low of $81,425 on Tuesday—the weakest level since
February 28. The crypto market was initially lifted by U.S. President Donald
Trump’s announcement of a U.S. crypto reserve plan on Sunday, which proposed
including Bitcoin, Ethereum (ETH), Ripple (XRP), Cardano (ADA), and Solana
(SOL). These altcoins surged 10–70% on the news.
However, the rally was short-lived as markets
tumbled on Tuesday following Trump's imposition of elevated tariffs on Mexico,
Canada, and China. The crypto market dropped 10%, with Bitcoin erasing its
recent gains. Further turbulence came from U.S. Treasury Secretary Scott
Bessenet, who reiterated the administration's commitment to lowering interest
rates.
Trump has scheduled a White House Crypto
Summit for March 7 to outline a roadmap for crypto-friendly regulations.
According to the White House, the summit will focus on establishing clear
industry guidelines, expanding stablecoin oversight, and blocking the creation
of a U.S. central bank digital currency. A major topic of debate is why highly
volatile assets like Ripple, Cardano, and Solana were included in the proposed
reserve.
Despite market volatility, analysts at
Standard Chartered now forecast Bitcoin reaching $200,000 by the end of 2025,
urging investors to buy dips rather than waiting for BTC to drop to $80,000.
Their projection aligns with expectations of a post-halving price surge,
although a deep correction in late 2025 remains a possibility.
Meanwhile, an unknown trader profited $6.8
million after opening a $200 million BTC long position ahead of Trump’s crypto
reserve announcement. Initially at risk of liquidation, the position turned
profitable as BTC surged over 11% post-announcement.
Institutional sentiment appears to be
stabilising. Spot Bitcoin ETFs from BlackRock (IBIT), Fidelity (FBTC), and
Grayscale (GBTC) saw a record $1.88 billion in outflows in recent weeks but
reported a more modest $102.7 million in outflows this week.
February was the worst month for the crypto
market since June 2022, despite historically being among the best-performing
months, with an average BTC gain of 7%. March is typically weaker, averaging a
3% BTC decline. However, 2025 could defy seasonal trends, with a lower market
base and post-halving momentum potentially driving Bitcoin to new highs.
BTC price targets remain at $150,000–$200,000
by mid-2025, supported by the U.S. crypto reserve initiative and expected
Federal Reserve rate cuts—both of which have become a key discussion points in
the market.