The Blockchain Bulletin, March 4: Trump’s Crypto Reserve Boosts BTC Above $94K
Hey folks! Welcome to the latest edition of The Blockchain Bulletin. Here are some news insights that took on to hit the headlines interestingly over the past 24 hours. The market witnessed a significant surge after President Donald Trump announced a strategic reserve. Following the spike, Bitcoin reached a high of $94,272 before facing resistance at $94,578. The 38.2% Fibonacci level at $101,134 remains a major barrier to further gains. However, analysts suggest that a decisive move past $94,578 could push Bitcoin toward the $100,000 psychological mark.
On the other hand, Brian Armstrong and Peter Schiff dismissed the multi-asset reserve approach, advocating for a Bitcoin-only reserve. Schiff, a longtime crypto critic, surprisingly supported a Bitcoin reserve, arguing that altcoins like XRP introduce unnecessary risks. Meanwhile, the crypto community remains divided over whether diversification strengthens or complicates the reserve’s stability.
Following Bitcoin, the altcoin market erupted, with XRP surging 33% to $2.80, while Solana jumped 25% to $143.94. Ethereum climbed 13% to $2,442, and Cardano followed the upward trend. Other tokens, including Bitget, Cronos, Dogwifhat, and Onyxcoin, witnessed double-digit gains. Meme coin WIF led the meme sector’s rally with an 18% surge, outpacing DOGE’s modest 5% increase.
Furthermore, massive whale activity has further fueled market volatility. A crypto whale, identified as “0x655,” suffered a $14 million loss after liquidating 531.7 billion PEPE and 261.6 million BEAM. However, the whale quickly reinvested in ONDO, aligning with Trump’s new economic agenda and the U.S. Crypto Reserve narrative.
Meanwhile, an unidentified trader made $6.8 million in leveraged Bitcoin and Ethereum bets just before Trump’s announcement. The perfectly timed trades have sparked insider trading concerns, with industry analysts questioning whether key players had prior knowledge of the news.
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While most altcoins soared, Solana faced pressure from an ongoing FTX liquidation. The bankrupt exchange released 11.2 million SOL tokens worth $1.57 billion, raising concerns about oversupply. Institutional buyers, including Galaxy Digital and Pantera Capital, had previously acquired discounted SOL, adding to selling pressure. As of press time, SOL is trading at $159.02 and its support levels at $158.88 and $178.79 could help stabilize the price, but further liquidations may push the token below $150 if selling pressure intensifies.
Binance is set to delist non-MiCA-compliant stablecoins, including USDT and DAI, in the European market. From March 27, Binance will automatically convert non-compliant stablecoins to USDC, ensuring regulatory adherence. Meanwhile, Vietnam is gearing up to legalize cryptocurrencies, with government agencies drafting regulatory frameworks to protect its 17 million crypto users. This move could establish Vietnam as a major digital asset hub in Asia. Cronos has also proposed reissuing 70 billion CRO tokens previously burned in 2021 to create a strategic reserve with a five-year vesting period. While some argue this will enhance liquidity, critics fear it could dilute the token’s value and centralize control.
Related: Simon McWilliams Joins Tether as CFO to Lead Full Audit
Trump is set to host the first White House Crypto Summit on March 7, bringing together industry leaders. However, controversy looms as Peter Schiff accuses Trump of manipulating markets through Truth Social posts. Schiff even suggested that Trump could face impeachment over market manipulation, citing his family’s involvement in launching tokens like $TRUMP and MELANIA. Despite legal concerns, Trump’s latest crypto move has undeniably reshaped market sentiment. With Bitcoin witnessing a significant surge and altcoins following behind, investors are closely watching for the next big move in the evolving crypto landscape.
