TLDR
Bitcoin rebounded to $92,532, rising 6.2% amid speculation about Trump’s crypto reserve plans
US Commerce Secretary Howard Lutnick confirmed Trump will reveal Bitcoin reserve details at Friday’s White House crypto summit
Trump previously identified five cryptocurrencies (Bitcoin, Ether, XRP, Solana, Cardano) for the potential reserve
Short-term holders are increasing their Bitcoin supply while long-term holders are selling
Bitcoin’s recent price movement shows recovery from sub-$80,000 lows hit last week
Bitcoin’s price has bounced back to $92,532, showing a 6.2% increase. This recovery comes after falling below $80,000 last week.
The rebound coincides with growing interest in US President Donald Trump’s plans for a cryptocurrency reserve. Trump has scheduled the White House’s first crypto summit for Friday.
US Commerce Secretary Howard Lutnick told The Pavlovic Today that Trump will share more details about a Bitcoin strategic reserve during the summit. Lutnick mentioned that Bitcoin would receive special consideration in Trump’s crypto plans.
The news has helped push Bitcoin prices higher. Other cryptocurrencies have followed this positive trend.
Trump previously named five cryptocurrencies for his proposed reserve. These include Bitcoin, Ether, XRP, Solana, and Cardano.
Broader Market Recovery
Bitcoin’s price increase aligns with a recovery in global stock markets. This suggests improved risk appetite among investors.
The recovery comes despite ongoing trade tensions. Trump has kept tariffs against China in place.
He did make some concessions on the 25% tariffs against Canada and Mexico. However, the president has also mentioned plans for more trade duties in April.
Other cryptocurrencies rose alongside Bitcoin. Ether increased by 6.4% to $2,319.80.
XRP rose 3.9% to $2.5276. Solana and Cardano added 5.7% and 2.3% respectively.
Uncertainty Remains
Despite the positive price movement, questions remain about Trump’s crypto reserve plans. It’s unclear whether the reserve will be formed through executive order or through Congress.
An executive order would limit available funds. Going through Congress might face resistance from lawmakers focused on reducing government spending.
This uncertainty has caused mixed reactions in crypto markets. Previous mentions of a reserve by Trump only created short-lived gains in prices.
Investors are waiting for more concrete details. These may come during Friday’s White House crypto summit.
Shifting Holder Dynamics
Market data shows changing patterns in who holds Bitcoin. Short-term holders are increasing their supply.
At the same time, long-term holders are reducing their Bitcoin holdings. This transition often signals a market shift.
When long-term holders sell their assets, short-term traders tend to buy them. This pattern has happened at previous market peaks.
Increased activity from short-term holders suggests more speculative trading. This could lead to more price volatility.
Institutional Activity
While retail traders move in and out of positions, institutional buyers continue to accumulate Bitcoin. This includes purchases through ETFs.
MicroStrategy, a major corporate Bitcoin investor, has followed retail buying patterns. These institutional flows help support Bitcoin’s price.
However, market analysts warn that a period of price consolidation may still occur. This could happen due to liquidity demands in the market.
More stable conditions might develop once short-term holders begin selling and long-term holders start buying again. This would create a better environment for long-term investments.
On-Chain Activity Increases
Data from IntoTheBlock shows a surge in active Bitcoin addresses following last week’s price drop. This indicates more on-chain activity.
Last week’s drop triggered a surge in active addresses, pushing the daily average to its highest level since December, when Bitcoin surpassed $100k.
This uptick in on-chain activity coincided with an increase in zero-balance addresses, indicating capitulation. pic.twitter.com/eiESdiwERN
— IntoTheBlock (@intotheblock) March 4, 2025
The daily average of active addresses reached its highest level since December. That was when Bitcoin briefly passed $100,000.
This increase in activity happened alongside a rise in zero-balance addresses. Some analysts see this as a sign of capitulation by certain investors.
These on-chain metrics provide additional context for Bitcoin’s recent price movements. They help traders understand what might be happening beneath the surface.
Looking Forward
Market participants are now watching for signs that might indicate Bitcoin’s next move. Key factors include supply trends, ETF inflows, and overall market liquidity.
If long-term holders start buying again and demand recovers, Bitcoin could see renewed upward momentum. Until then, caution may be necessary.
Bitcoin’s price stood at $92,532.3 as of 00:46 ET on Thursday. The cryptocurrency continues to attract attention ahead of Trump’s first White House crypto summit.
