Return of crypto reserve idea halts market slide
|Market picture
Crypto market capitalization collapsed by 7.5% in the last 24 hours to $2.65 trillion, the lowest level since November 10th. Unlike the dynamics of the previous two days, there was no rebound at the beginning of Friday; there was just a timid attempt at consolidation. It seems that the market has found the pain point of short-term buyers, knocking out the “weak hands.”
Bitcoin has lost 8.6% over the last day, having pulled back under $79,000. The formal bearish trend boundary and the 200-day moving average remain above the current price level. Bitcoin will completely nullify Trump's rally if it pulls back to the $70K area, which has acted as resistance for most of the past year. Going below will not be easy—the market is too oversold.
Ethereum has pulled back below $2100, trading in the area of last year's lows and attempting to break lower. This bad news is amplified by the “death cross,” a bearish signal that occurs when the 50-day moving average dips below the 200-day moving average. Ironically, this signal was followed by stabilization last August, although a full-fledged return of buyers had to wait three months.
News background
President Donald Trump is set to host the first-ever cryptocurrency summit at the White House on March 7, bringing together top industry leaders to discuss regulatory policy, stablecoin oversight, and Bitcoin’s role in the US financial system.
According to White House AI and Cryptocurrency Advisor David Sachs, the event will feature prominent crypto founders, CEOs, investors, and members of the President’s Working Group on Digital Assets.
The summit is expected to provide further clarity on upcoming stablecoin legislation, as Sachs has previously emphasized stablecoins’ potential to “extend the dollar’s dominance internationally.” Additionally, discussions around establishing a strategic Bitcoin reserve for the US are gaining traction.
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