Bitcoin and Trump’s Crypto Strategic Reserve: a week of volatility for the bull market

A recent announcement by Donald Trump has reignited the market: the Crypto Strategic Reserve, a move that has restored confidence and bull trends in the markets.

This week, in fact, the cryptocurrency market experienced significant volatility, with Bitcoin losing almost 18,000 dollars in value. This decline was exacerbated by the Bybit hack and significant outflows from ETFs.

Crypto Strategic Reserve: how Trump’s announcement can help the crypto market?

Bitcoin experienced a strong sell-off, dropping from around $96,000 to a low of $78,000. The Bybit hack acted as a catalyst, triggering forced sales from the exchanges due to non-compliance with margin requirements.

Furthermore, the implied volatility for the new March expiration has risen to 53%, indicating an increase of 10 points compared to the previous week.

Ethereum has also come under pressure, reaching a low of $2,080, about twenty dollars below the previous low of February 3. 

Despite the overall market reacting positively to Trump’s announcement, Ethereum continues to lag behind other cryptocurrencies, highlighting an implied volatility for March at 67%, up by 5 points.

In this context, the announcement by President Trump on the creation of a Crypto Strategic Reserve had an immediate impact on the markets. The goal is to incentivize the use of cryptocurrencies and to promote policies favorable to their development.

This announcement caused Bitcoin’s volatility to soar by up to +20 points in just a few minutes, demonstrating the influence of the political market on cryptocurrencies. 

Implications for the market

The dominance of Bitcoin remains high, at 61.38%, despite the constant creation of new altcoins. This indicates that, despite the fluctuations, Bitcoin continues to maintain a predominant position in the cryptocurrency market. 

The Punto di Controllo (POC), which highlights the price in relation to volumes, is almost in line with the current price at $95,900. A break of this level could take Bitcoin beyond $100,000. 

Despite the market recovery, the strength of the Bitcoin trend remains negative, moving from -8 to -10, with a bear peak at -15, values not seen since July 2024. 

The crucial support points for Bitcoin are set at $89,200, $84,300, and $66,800, while the price targets are at $99,600 and $106,200. These levels indicate potential points of recovery or further decline, depending on the market trend.

In conclusion, the recent announcement by Trump on the Crypto Strategic Reserve has demonstrated how much political decisions can influence the cryptocurrency market. 

Volatility and price fluctuations emphasize the importance of closely monitoring the market and considering the risks associated with investments in criptovalute.

Will the market manage to stabilize and resume a positive trend in the long term? Only time and the next political moves will tell.