{"id":21711,"date":"2025-03-04T11:29:46","date_gmt":"2025-03-04T09:29:46","guid":{"rendered":"https:\/\/forklog.com\/en\/bitcoin-falls-back-to-84000-giving-up-the-trump-pump-after-crypto-reserve-posts\/"},"modified":"2025-03-04T11:29:46","modified_gmt":"2025-03-04T09:29:46","slug":"bitcoin-falls-back-to-84000-giving-up-the-trump-pump-after-crypto-reserve-posts","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/bitcoin-falls-back-to-84000-giving-up-the-trump-pump-after-crypto-reserve-posts\/","title":{"rendered":"Bitcoin falls back to $84,000, giving up the &#8216;Trump pump&#8217; after crypto-reserve posts"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>The US raised tariffs on imports from Canada, Mexico and China.<\/li>\n<li>Specialists pointed to a lack of specifics in Trump\u2019s message about a strategic cryptocurrency reserve.<\/li>\n<li>On-chain indicators suggest the distribution phase is continuing.<\/li>\n<\/ul>\n<\/div>\n<p>On the morning of March 4, bitcoin slipped back below $84,000. Similar levels were seen over the weekend before Donald Trump called to \u201cgive the go-ahead\u201d to a strategic cryptocurrency reserve.<\/p>\n<p>On March 2, the US president<a href=\"https:\/\/u1f987.com\/en\/news\/donald-trump-orders-creation-of-a-us-crypto-reserve\"> instructed<\/a> that SOL, XRP and ADA be included in the reserve\u2019s composition alongside bitcoin and Ethereum. Against that backdrop, bitcoin\u2019s price<a href=\"https:\/\/u1f987.com\/en\/news\/bitcoin-surges-to-95000-following-trumps-remarks-on-altcoin-inclusion-in-crypto-reserve\"> surged to $95,000<\/a>, while the cited altcoins posted double-digit gains.<\/p>\n<p>The renewed about-face in sentiment may have stemmed from a lack of \u201ccoordination\u201d and details on funding the plan, TD Cowen believes, writes<a href=\"https:\/\/www.theblock.co\/post\/344220\/td-cowen-trump-crypto-reserve-uncoordinated-lacks-funding-details\"> The Block<\/a>.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWe warn against overreacting. In the initial version, bitcoin and ether were not even included in the reserve. That leads us to think the move was not coordinated. Nor was it discussed how the government would obtain funds to buy tokens,\u201d<\/em> <em>the note said.<\/em><\/p>\n<\/blockquote>\n<p>Analysts also flagged the March 7 summit with the president\u2019s special adviser on AI and cryptocurrencies<a href=\"https:\/\/u1f987.com\/en\/news\/trump-nominates-david-sacks-as-crypto-czar\"> David Sacks<\/a> alongside industry representatives and investors.<\/p>\n<p>The event will help determine the prospects for legislation on stablecoins and digital assets. TD Cowen doubted Congress\u2019s readiness to enact such initiatives within the first 100 days of Trump\u2019s presidency.<\/p>\n<p>Aurelie Barthere of Nansen<a href=\"https:\/\/cointelegraph.com\/news\/trump-crypto-reserve-market-rally\"> linked<\/a> the rally\u2019s short-lived nature to the lengthy process of securing Congressional approval of the reserve\u2019s structure.<\/p>\n<p>Her colleague Nikolai Sondergaard warned of volatility given the uncertainty around the crypto reserve.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe question for the future is whether any of this will come to pass. If not, that will most likely be negative news for coin prices,\u201d<\/em> the expert added.<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\"><strong>Are trade wars to blame?<\/strong><\/h2>\n<p>On the evening of March 3, the situation in crypto markets was aggravated by<a href=\"https:\/\/www.reuters.com\/business\/autos-transportation\/trump-decide-us-tariff-levels-mexico-canada-tuesday-deadline-approaches-2025-03-03\/\"> reports<\/a> of a new round of White House tariff increases. Selling intensified across risk assets; the S&amp;P 500 index closed down 1.8%.<\/p>\n<p>From March 4, 25% tariffs take effect on goods from Mexico and Canada (10% on energy), and 20% on imports from China. Trump justified the move by saying neighbouring countries had not halted the flow of fentanyl into the US.<\/p>\n<p>Canada\u2019s prime minister, Justin Trudeau, warned he would impose reciprocal measures on American goods and urged the White House to reconsider. Mexico promised to present \u201cits plan B, C, D\u201d later. A response from official Beijing is also expected.\u00a0<\/p>\n<p>Investors are also bracing for additional steps after April, when Commerce Secretary Howard Lutnick will present a report on possibly introducing US \u201creciprocal tariffs\u201d to align them with other countries\u2019 levels and offset other trade barriers, which could hit the EU hard.<\/p>\n<h2 class=\"wp-block-heading\"><strong>On-chain picture<\/strong><\/h2>\n<p>According to Glassnode, the early-week rally did not push short-term holders\u2019 coin purchases into profit. At the then-prevailing price of $92,700, their \u201cprofitability\u201d slipped negative, pointing to a \u201cfragile position\u201d.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#Bitcoin<\/a>\u2019s Accumulation Trend Score has remained below 0.5 for 58 consecutive days, marking an extended period of net distribution. The current streak is approaching the average duration for distribution periods over 1Y window, suggesting it remains in line with prior trends. <a href=\"https:\/\/t.co\/f8HbLllogN\">pic.twitter.com\/f8HbLllogN<\/a><\/p>\n<p>\u2014 glassnode (@glassnode) <a href=\"https:\/\/twitter.com\/glassnode\/status\/1896553470481838324?ref_src=twsrc%5Etfw\">March 3, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Specialists also noted that the Accumulation Trend Score for the first cryptocurrency stayed below 0.5 for 58 straight days, signalling a prolonged period of net distribution. Such phases often coincide with market corrections.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cAccumulation and distribution phases alternate on average over 57\u201365 days. The latest reading is 0.9. This suggests that large players are still in net-selling mode, and a shift to accumulation has yet to be confirmed,\u201d<\/em> they warned.<\/p>\n<\/blockquote>\n<p>IntoTheBlock noted a \u201cturning point\u201d after the number of active bitcoin addresses hit a three-month high. The firm saw this as a signal of impending \u201ccapitulation\u201d.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Bitcoin\u2019s active address count reached its highest daily level since December 2024, potentially signaling a capitulation moment. <\/p>\n<p>Historically, spikes in on-chain activity have often coincided with market peaks and bottoms\u2014driven by panic sellers exiting and opportunistic\u2026 <a href=\"https:\/\/t.co\/m00G7PfquJ\">pic.twitter.com\/m00G7PfquJ<\/a><\/p>\n<p>\u2014 IntoTheBlock (@intotheblock) <a href=\"https:\/\/twitter.com\/intotheblock\/status\/1895529970677526669?ref_src=twsrc%5Etfw\">February 28, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cHistorically, spikes in on-chain activity have often coincided with market peaks and bottoms,\u201d<\/em> the specialists noted.<\/p>\n<\/blockquote>\n<p>According to Sygnum, a $1bn purchase of the first cryptocurrency for a national bitcoin reserve would lift market capitalisation <a href=\"https:\/\/u1f987.com\/en\/news\/sygnum-assesses-impact-of-us-bitcoin-reserve-purchases\">by $20bn<\/a>.<\/p>\n<p>Earlier, analyst Thomas Farrer forecast that the price of the digital gold would jump <a href=\"https:\/\/u1f987.com\/en\/news\/trade-wars-enhance-bitcoins-appeal-say-experts\">by $50,000 in a minute<\/a> when US authorities confirm the creation of <span data-descr=\"strategic bitcoin reserve\" class=\"old_tooltip\">SBR<\/span>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US raised tariffs on imports from Canada, Mexico and China. Specialists pointed to a lack of specifics in Trump\u2019s message about a strategic cryptocurrency reserve. On-chain indicators suggest the distribution phase is continuing. On the morning of March 4, bitcoin slipped back below $84,000. Similar levels were seen over the weekend before Donald Trump [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":21710,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[991,1224,1145,1150,1268],"class_list":["post-21711","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-donald-trump","tag-macroeconomics","tag-market-analysis","tag-news-plus","tag-on-chain-analysis"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/21711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=21711"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/21711\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/21710"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=21711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=21711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=21711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}