The Push and pull on bitcoin’s Price

Bitcoin’s price has retreated from its recent peak, influenced by a confluence of factors, most notably the uncertainty generated by President Trump’s aggressive trade policies. Together,Bitcoin ETFs are experiencing a resurgence in investment. This divergence begs the question: Is the cryptocurrency market poised for a turnaround, or will volatility continue to reign?

From Campaign Promises to Policy Realities: A Crypto Disappointment?

The atmosphere was electric when President trump assumed office in January, with Bitcoin soaring to $109,000. the self-proclaimed “Pro-Bitcoin President” had campaigned on promises of establishing strategic bitcoin reserves [[2]], providing affordable energy for mining operations, and fostering a largely unregulated crypto sector.The vision was for the United States to emerge as a global hub for digital currencies.

However,the reality has fallen short of these expectations. The Executive Order signed to establish a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile [[2]], while a step, was limited to utilizing already seized cryptocurrencies, a move that disappointed many investors.

Moreover, President Trump’s trade policies have introduced notable headwinds. The imposition of tariffs on goods from Canada, Mexico, China, and perhaps the EU has triggered a flight from risk assets, impacting Bitcoin’s performance.

Signs of Stabilization Amidst the Turbulence?

Despite the volatility, there are indications that Bitcoin may be finding its footing. After a decline of approximately 30% from its all-time high, Bitcoin’s price charts are exhibiting potentially bullish patterns.

Notably, the formation of higher lows since March 10th, when the price dipped to just over $76,000, is a positive sign.By March 31st, the low point had risen to around $81,000, a classic signal of a possible trend reversal.

Similar patterns were observed in August 2024 during the Yen-Carry Trade sell-off and in January following the launch of spot bitcoin ETFs.In both instances, a period of recovery ensued after the initial bottoming out. For a sustained upward trajectory, Bitcoin needs to break through the $90,000 resistance level, a target that remains some distance away.

Bitcoin ETF Renaissance: Institutional Interest Remains Strong

while Bitcoin’s price has struggled, Bitcoin ETFs are experiencing a notable resurgence. After five weeks of outflows totaling over $5.5 billion, these funds have seen consistent inflows as mid-March.On March 17th, a substantial $274.6 million flowed into these products,signaling renewed investor interest.

Juan Leon, investment strategist at Bitwise, emphasizes that the interest of financial advisors and institutional investors remains unbroken despite the current market conditions.

Bitwise

leon suggests that many professional investors view the current market conditions as an prospect to establish or expand their positions. He anticipates inflows of $3 billion or more into Bitcoin ETFs during the second quarter of 2025.

Strategic Bitcoin Reserve and Digital Asset Stockpile

President Trump’s administration has taken steps to manage digital assets, including Bitcoin, through the creation of a “Digital Asset Stockpile” [[1]] [[3]].This stockpile will consist of seized cryptocurrencies, excluding Bitcoin, with a focus on altcoins like XRP, Solana, and Cardano [[1]].

The establishment of a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile [[2]] aims to manage digital assets obtained through forfeiture.