Bitcoin rebounded 4% on March 7 after initial drops due to the U.S. Strategic Bitcoin Reserve announcement. The reserve, created from confiscated coins, disappointed some; however, analysts suggest a bullish sentiment remains. Market volatility persists with upcoming employment data and Jerome Powell’s speech impacting expectations.
On March 7, Bitcoin (BTC) experienced a remarkable 4% rebound, revitalizing the market after initial disappointment surrounding the U.S. Strategic Bitcoin Reserve announcement. Data from Cointelegraph Markets Pro and TradingView revealed BTC/USD bouncing back from local lows of $84,713 on Bitstamp. This rally occurred soon after President Trump signed an executive order to establish a reserve primarily from confiscated coins, with no new BTC to be added.
David Sacks, dubbed the White House crypto czar, commented on the executive order, stating, “Premature sales of bitcoin have already cost US taxpayers over $17 billion in lost value…The federal government will have a strategy to maximize the value of its holdings.” He noted that Treasury and Commerce Secretaries now have the authority to devise budget-neutral strategies for acquiring more BTC without affecting taxpayers.
The initial reaction to the announcement saw the markets dip, disappointing bulls whose hopes for further BTC acquisitions were dashed. Trading resource The Kobeissi Letter remarked that it was not the kind of “reserve” crypto enthusiasts had anticipated, labeling it a typical “sell the news event.”
However, the Asian trading session regained momentum just ahead of the anticipated White House Crypto Summit. Analysts pointed to a robust stance from the new U.S. government on cryptocurrency, leading to discussions on market reactions. “I still don’t understand…how people fail to distinguish between bullish and non-bullish news,” said analyst BitQuant, highlighting confusion over market sentiment despite the bullish landscape.
Charles Edwards of Capriole Investments labeled the market as “excessively short” at lower levels, asserting that Bitcoin often overreacts to news. As the day progressed, potential volatility loomed with additional factors in play, notably U.S. employment data and a crucial speech from Federal Reserve Chair Jerome Powell.
On this day, traders were paying close attention to the Fed’s anticipated moves on interest rates, with CME Group’s FedWatch Tool indicating 11% odds of a cut at the upcoming March meeting, and approximately 50% for a May rate cut. In conclusion, metrics suggested a turbulent yet hopeful atmosphere for Bitcoin as it navigates through the complexities of market expectations and government policy shifts.
In sum, Bitcoin’s 4% bounce on March 7 reflects a complex intermingling of market reactions to the U.S. Strategic Bitcoin Reserve announcement. Analysts emphasize clarity among crypto enthusiasts in distinguishing bullish cues, with skepticism tempered by the government’s posture on cryptocurrencies. With looming economic indicators from employment data and the Fed, the cryptocurrency market prepares for a volatile yet opportune phase ahead.
Original Source: cointelegraph.com
