The crypto market cap rose back above $3 trillion after a brief sell-off. Interestingly, the sell-off and the recent upswing were both triggered by the U.S. President, Donald Trump. With the imposition of tariffs, the crypto markets plunged, with the BTC price marking fresh bottoms below $79,000, while with the announcement of a crypto strategic reserve, the price surged back above $95,000. With a momental shift from being bearish to somewhat bullish, the market participants now see some hope ahead of the first quarterly close.
President Trump announced the set-up of a crypto strategic reserve with Bitcoin, Cardano, XRP, & Solana, which is believed to start a global FOMO soon. As rightly stated by Senator Lummis, the crypto war could begin. China is reportedly holding a secret, closed-door meeting discussing the same. However, this move appears to be more to bolster the economy of the U.S., which is now carrying a national debt of over $36.2 trillion.
The announcement seems to have followed an analysis that the crypto is a magnet for investors. As per some reports, more than $300 billion has flown into the markets following the announcement. Moreover, the claim of making the U.S. the crypto capital of the world is expected to attract the crypto investors who could invest $5 million to get U.S. citizenship as the craze for the memcoin launched by the President himself validated the growing crypto adoption across the globe.
What’s Next with the Bitcoin (BTC) Price Rally?
The Bitcoin price witnessed a magnificent jump during the past weekend as it surged above $95,000 from the local bottoms. The present price action did close the CME gap between $80,670 and $$78,000 to a large extent but, in turn, has created a major gap instead. The start of the monthly trade was with a bullish rebound, which was followed by a 12% jump. Unfortunately, this 12% has formed a huge gap on the CME, and hence, the price is now expected to correct to fill the gap.
As seen in the above chart, the BTC price faced a pullback and is entering the CME gap range between $85,720 and $91,630. The price is known to have filled the nearest gaps in previous times, as it did in July- August 2024. Even if the price drops to fill the gap, the crypto will remain within the bullish range between the 50-day & 200-day MA, which are acting as strong resistance and support levels. Hence, breaking either of the levels may validate the direction of the next price action.
The Bitcoin price started the February trade on a bearish note and maintained a strong descending trend throughout the month. Hence, the price is now believed to fill the gap and rebound to reach $100K as the monthly start has been extremely bullish. However, the uncertainty over the crypto markets continues to prevail as the sentiments remain fearful.
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