Bitcoin price has rebounded 10% in the last 48 hours, reclaiming territory above $85,000 on Sunday, March 2, after plunging to a 120-day low of around $78,200 on Friday. Key technical indicators suggest BTC could be setting up for a positive start to March 2025.
Why is Bitcoin Price Going Up Today?
Bitcoin surged 10% over the weekend, largely driven by President Trump’s executive order to advance a Crypto Strategic Reserve and investors capitalizing on last week’s overheated market liquidations. The move coincided with the imminent imposition of tariffs on Canada and Mexico on March 1, fueling further demand as traders anticipated BTC’s role as a hedge against macroeconomic uncertainties.
Bitcoin (BTC) Makes $90K rebound as Bulls Buy-in at the Bottom
After shedding over 25% of its value in February, Bitcoin found relief over the weekend as strategic buyers entered the market. The price downturn had reached its lowest point on February 28, plunging to a 120-day low of $78,200.
Trump’s decision to impose tariffs on imports from Canada and Mexico sparked a global retraction of capital from risk assets, leading to double-digit declines in major indices such as the S&P 500, Japan’s Nikkei, and Germany’s DAX in the week leading up to the March 1 tariff implementation date.
Notably, Bitcoin price bottomed out Feb 28, when prices plunged to a 120-day lows around $78,200.
Market data observed over the weekend shows that strategic investors swooped at the bottom to buy into key assets at the cusp of the March 1 tariff date. Hence, BTC price received a major boost, climbing from 120-day lows recorded on Friday, to close trading for Saturday just above $85,000.
Trump Gives Green Light for Crypto Strategic Reserve
After reclaiming the $86,000 level in early European trading, Bitcoin saw another surge as U.S. President Donald Trump issued an executive order establishing a Crypto Strategic Reserve.
According to an official announcement on the Trump-owned Truth Social platform, the reserve will initially include Bitcoin (BTC), Solana (SOL), Ripple (XRP), and Cardano (ADA), reflecting a diversified approach to U.S. digital asset holdings. This decision aligns with Trump’s broader pro-crypto stance and signals a formal recognition of digital assets within the U.S. financial system.
Within an hour of Trump’s announcement, Bitcoin surged an additional 3%, briefly surpassing $91,000 at press time on Sunday March 2.
How Will Trump’s Crypto Strategic Reserve Impact BTC Price?
Taking a cue from nations such as El Salvador and Bhutan, which have incorporated Bitcoin into their national balance sheets, many analysts expected BTC to be the exclusive asset in the U.S. reserve.
However, Trump’s decision to include SOL, XRP, and ADA mitigates concentration risk while allowing the U.S. to benefit from the unique value propositions of each project.
Long-Term Gains to Mitigate Short-Term Dip in BTC Market Dominance
By spreading capital across four crypto assets, BTC is expected to see less upside than if it were the sole asset. While this may temporarily reduce Bitcoin’s market dominance, the long-term gains from a stronger, more resilient sector could drive BTC past $150,000 in the mid-to-long term
In the short term, Bitcoin could see a brief pullback in relative market share as capital flows into newly included assets. However, the broader legitimacy conferred by a U.S.-backed reserve is likely to enhance institutional confidence, solidifying Bitcoin’s long-term growth prospects.
BTC Price Forecast: $100K Breakout ahead as SHORT traders fold on Trump’s announcement
After last-weeks bloodbath, Bitcoin price forecast charts are now leaning bullish, with technical indicators pointing toward a potential breakout past $100,000 as short traders face increasing pressure. The 12-hour chart reveals a strong 16.84% rebound in just over two days, with BTC climbing from lows of $78,200 to reclaim $90,558.
This recovery aligns with a surge in trading volume, indicating renewed investor confidence. The MACD indicator has crossed bullishly, with the blue MACD line breaking above the signal line, signaling a shift in momentum.
As Bitcoin price approaches key suppport levels near $100,000 , Short traders, who capitalized on February’s steep decline, are unlikely to put up strong resistance, considering the current active Bitcoin price catalyst has the backing of the U.S. government.
Although unlikely, a bearish scenario could emerge if BTC fails to close above $88,000, triggering a new wave of liquidations. However, the momentum favors buyers, and with shorts unwinding, BTC could quickly surge past $95,000 before testing the critical $100,000 psychological level.
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