Bitcoin’s price remains volatile as traders react to major economic events, including Trump’s crypto reserve, tariffs, and the Federal Reserve’s latest stance.
Bitcoin (BTC) Finds Support at $86,000 after Volatile Week
Bitcoin’s price has experienced significant volatility over the past week, influenced by various economic and political developments. As of Saturday, Bitcoin is trading at approximately $86,000, reflecting a 7% decline from its peak earlier in the week.
Several key factors have contributed to this price movement, including President Donald Trump’s announcement of a strategic cryptocurrency reserve, the implementation of new tariffs, the outcomes of a White House summit on digital assets, and the latest U.S. Non-Farm Payrolls (NFP) report.
1. Trump Announces Strategic Cryptocurrency Reserve
On March 2, President Trump unveiled plans for a U.S. strategic cryptocurrency reserve, dubbed the “Digital Fort Knox,” aiming to bolster the nation’s position in the digital asset space. This reserve is set to include major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA).
The announcement led to a swift market reaction, with Bitcoin surging 13% moving from local lows around $78,200 to hit a monthly time frame peak of $95,000 within 48 hours of Trump’s crypto strategic reserve announcement . Altcoins like XRP and Cardano saw even more substantial gains, with XRP rising by 40% and Cardano doubling in value.
While the inclusion of altcoins sparked debate among Bitcoin purists, the administration defended the decision as a move to support a diverse range of blockchain projects.
However, further market events prompted short-term traders to take profits, causing Bitcoin’s momentum to record 4 consecutive losing days as the week unfolded.
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2) Implementation of New Tariffs Introduces Volatility
On March 3, President Trump announced a 25% blanket tariff on all imports from China and Mexico, aiming to protect domestic industries. This policy shift rattled global financial markets, leading to a sharp sell-off in risk assets, including cryptocurrencies. Bitcoin’s price retraced its earlier gains, dipping to a weekly low of $81,400 by March 4.
In response to retaliatory measures from the affected countries and domestic pushback, the administration partially rolled back the tariffs. On March 6, the U.S. Secretary of Commerce announced exemptions for Mexican imports and a one-month delay for auto import tariffs.
This policy reversal provided a relief rally for Bitcoin, as BTC closed trading above the $89,000 mark on Thursday.
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3) White House Summit on Digital Assets
The week ended with the White House Crypto Summit, where industry leaders and policymakers convened at Washington to discuss the future of cryptocurrencies in the U.S.
Prior to the summit, David Sacks, the administration’s crypto and AI policy advisor, criticized the previous administration for missing out on potential profits from seized Bitcoin assets. He highlighted that the government currently holds approximately 200,000 BTC, valued at over $17 billion, acquired through legal seizures.
During the summit, President Trump signed an executive order to formalize the creation of the “Digital Fort Knox,” reinforcing the administration’s commitment to integrating cryptocurrencies into the national financial infrastructure. However, the lack of immediate actionable policies led to a 4% decline in Bitcoin’s value post-summit, reflecting market disappointment over the absence of concrete regulatory framework.
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4) Impact of Non-Farm Payrolls Report
The latest U.S. Non-Farm Payrolls (NFP) report, released on March 7, revealed an increase in unemployment rates, raising concerns about persistent inflation and the potential for more aggressive monetary tightening by the Federal Reserve. These macroeconomic factors have added downward pressure on Bitcoin, as investors reassess risk exposures in light of potential interest rate hikes.
Bitcoin Price Outlook: Bulls must hold $85,000 Support to Maintain Upside Prospects
BTC price stabilization around the $86,000 level suggests a consolidation phase as the market digests recent developments. Traders will closely monitor upcoming economic indicators, Federal Reserve communications, and any further policy announcements related to digital assets will likely dictate the next directional move in the coming days.
Bitcoin price forecast signals on the the 12-hour chart shows Bitcoin trading within a tight range, with Bollinger Bands compressing, indicating lower volatility. The price hovers near the 50-day moving average, acting as immediate support, while the upper Bollinger Band at $93,822 serves as resistance.
Momentum indicators suggest mixed signals. The MACD histogram shows declining bullish momentum, with the signal line approaching a bearish crossover. However, the overall structure remains intact, as long as Bitcoin holds above $85,000.
A break below this level could trigger further downside towards $80,800, the lower Bollinger Band, while a rebound could send Bitcoin toward the $87,346 mid-band resistance before a possible push to the $90,000 psychological level.
Leverage remains a key factor, with increased open interest potentially amplifying Bitcoin’s next move. Traders should watch volume trends and liquidity imbalances, as a sharp liquidation event could define the next major price swing.
Frequently Asked Questions (FAQs)
Bitcoin initially surged from $78,200 to $95,000 after the announcement but later retraced as traders took profits.
The 25% import tariff on China and Mexico caused volatility, with Bitcoin dropping to $81,400 before recovering after partial rollbacks.
Bitcoin’s price consolidation suggests stability, but a break below $85,000 could trigger a drop toward $80,800, while a rebound may push BTC to $90,000.
ibrahim
Crypto analyst covering derivatives markets, macro trends, technical analysis, and DeFi. His works feature in-depth market insights, price forecasts, and institutional-grade research on digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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