Forex Analysis & Reviews: 04.03.2025 - Bitcoin and Ethereum again...

04.03.2025 10:49 AM

Bitcoin and Ethereum again going through massive sell-offs

The weekend rally in the cryptocurrency market quickly turned into an aggressive sell-off, pushing Ethereum to new weekly lows, along with significant declines across several altcoins. The main reason? Traders finally realized that no altcoin—whether XRP, SOL, or ADA—will be included in the US strategic crypto reserve.

This sentiment was echoed by several leading figures in the crypto industry. Arthur Hayes, American entrepreneur, co-founder and former CEO of cryptocurrency exchange BitMEX, commented on Trump's announcement, stating that he didn't hear anything new. "It's all just words. Let me know when they get Congress to approve borrowing money or revalue gold prices higher. Without that, they won't have the funds to buy crypto," Hayes remarked. "I remain optimistic, but I won't be buying more tokens at this stage." As for the reserve itself, Hayes believes Bitcoin is the only real contender for inclusion.

According to Arthur Hayes, several nations are already exploring or implementing similar strategies to enhance financial security and reduce dependence on traditional currencies. However, he views Trump's announcement as more of a political move to attract lawmakers' attention rather than a well-thought-out plan. Hayes doubts that Trump fully understands the complexities and risks of establishing and managing the crypto reserve. He emphasized that success in this initiative requires a deep understanding of crypto technology, effective regulations, and international cooperation. Without these elements, the US strategic crypto reserve could remain nothing more than a political slogan.

Amid the recent market downturn, crypto funds recorded massive outflows of $2.9 billion—a sharp increase from $508 million the previous week. The primary reason for massive outflows is the protracted decline in crypto prices, prompting investors to minimize risks by pulling funds out of crypto-related products.

The hardest-hit products were Bitcoin-related funds, followed closely by Ethereum products, though to a lesser extent. Despite this negative trend, analysts believe the situation may be temporary. If investor confidence stabilizes and the market regains footing, capital could flow back into crypto products. However, bearish pressure on the market is expected to persist in the short term.

Trump to host first White House crypto summit on March 7

Adding to the ongoing crypto buzz, David Sacks announced that Donald Trump will host the first-ever White House Crypto Summit on March 7. The event aims to bring together industry leaders to discuss regulation, stablecoins, and crypto reserve legislation—an announcement that sent shockwaves through the crypto community.

The summit is expected to be a crucial step toward shaping US crypto policy. Participants will likely discuss the need for clear regulations to protect investors while fostering innovation. The regulation of stablecoins will also be a key focus, as their stability is critical for mainstream adoption.

Besides, discussions on crypto reserve legislation—which aims to ensure transparency and security of digital assets—will be a major talking point. The summit could serve as a platform for finding compromises between the industry and regulators, ultimately creating a more favorable environment for the development of the crypto economy.

Technical outlook for Bitcoin

Buyers are targeting a break above $85,300, which would open the door to $87,500 and then $89,300. The long-term target remains at $91,000, a breakout above which could signal a return to the mid-term bull market. In case of a decline, support is expected at $83,200, with further downside risks toward $81,400 and an ultimate target of $79,200.

Technical outlook for Ethereum

A confirmed move above $2,138 could pave the way for a rally toward $2,223 and a yearly high of $2,299. If Ethereum breaks above $2,299, it could signal a return to the mid-term bullish trend. On the downside, buyers are expected at $2,055, while a drop below this level could see ETH retreat to $1,974 and ultimately $1,885.

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*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.