Bitcoin had a rough month, but some major news has already turned things around. On Sunday, Bitcoin jumped past $94,000 after a huge announcement from the United States.
Donald Trump posted on Truth Social on Sunday March 2, stating he wants to make the U.S. the “Crypto Capital of the World.” His latest executive order directs the Presidential Working Group on Digital Assets to start setting up a national crypto reserve—which will include Bitcoin.
Bitcoin reacted instantly, climbing over 8% in 24 hours. Trump’s new plan is a shift from his previous idea of just holding the U.S.’s existing Bitcoin reserves. A strategic crypto reserve suggests the government may actively buy more Bitcoin over time. A global Bitcoin reserve race may have (already?) started with this announcement.
Not everyone in the crypto community is on board. Some argue Bitcoin’s security and decentralization make it the best asset for such a reserve. Others worry that government involvement could weaken the dollar and be affected by future political changes. Either way, the markets are reacting, and Bitcoin’s price is one to watch.
From Over $100,000 to $78,000
Hopes were high at the start of February. In January, Bitcoin was comfortably trading above $100,000, and many expected a new all-time high. But instead of climbing, Bitcoin started to fall. The price hovered around $102,500 at the beginning of the month, but then it took a sharp turn downward.
A few things triggered the drop. A hack at crypto exchange Bybit shook investor confidence, and tensions from Trump’s trade war escalations added more uncertainty. On February 28, Bitcoin fell below the key $80,000 level, hitting a low of $78,200.
Signs of a Comeback
Many experts feared Bitcoin could keep falling toward $70,000, but instead, it bounced back. The price climbed back up to $85,000, recovering $7,000 from its lowest point.
Investors are starting to feel more confident again, though Bitcoin’s total market value is still under $1.7 trillion. Its market share, or dominance in the crypto space, stands at 58%.
What Could Happen in March?
March has been unpredictable for Bitcoin in the past. In 2013, Bitcoin shot up 173%, but in other years, its performance has been all over the place. However, the last four years have ended on a positive note, with gains between 5% and 29%.
If that pattern continues, March could bring a rebound, especially since February’s drop is still fresh in people’s minds. Trump’s announcement is surely going to spice things up and will likely have a positive effect on March’s numbers. It’s Monday now, and it will be exciting to see how the Bitcoin ETF markets react when they open later today.
At time of writing, Bitcoin is moving hands at $93,080 as per CoinMarketCap data.
Keep following us here at HowToBuyBitcoin.org to stay updated on what you need to know on the world’s flagship cryptocurrency.