Bitcoin (BTC) Price: Breaks Out of Fear Zone After Trump’s Strategic Reserve Announcement

TLDR

• Bitcoin surged dramatically following Trump’s announcement of a US Crypto Strategic Reserve, creating the largest CME futures gap in history at $10,350 between $84,650 and $95,000
• Trump openly expressed support for both Bitcoin and Ethereum ahead of the White House crypto summit scheduled for March 7
• The Coinbase premium index shows signs of recovery, indicating reduced selling pressure and possible return of US buyer interest
• Market sentiment remains cautious despite the rally, with the Fear & Greed Index at 33/100, up from recent lows of 10/100
• Key support levels to watch are between $90,000-$91,000, while traders expect a possible retest of $85,000 to fill the CME gap

Bitcoin’s price surged dramatically over the weekend, touching $95,000 following former President Donald Trump’s announcement of plans for a US Crypto Strategic Reserve. The move created the largest-ever price gap in CME Bitcoin futures history, setting up an interesting technical scenario for traders.

The weekend rally began after Trump posted on social media, appearing to confirm the implementation of a strategic crypto reserve that would include both Bitcoin and Ethereum. The announcement drove Bitcoin from $85,000 to nearly $95,000 in a single day, injecting over $300 billion into spot markets.

Bitcoin Price on CoinGecko

The swift price movement resulted in a $10,350 CME futures gap, as the exchange’s Bitcoin futures closed at $84,650 in the previous session and opened at $95,000. This gap dwarfs the previous record of approximately $4,000 observed in August 2024.

Trading Analysis

Trading data shows that the $90,000-$91,000 range has acted as a crucial support zone over the past several months. The recent price action saw a breakdown below this level before quickly recovering back into the range.

Despite the positive price movement, market sentiment remains cautious. The Crypto Fear & Greed Index sits at 33/100, indicating fear, though this marks an improvement from last week’s extreme fear reading of 10/100.

The Coinbase premium index, which measures the difference between BTC/USD prices on Coinbase versus BTC/USDT on Binance, shows signs of recovery. This suggests reduced selling pressure and potentially returning US buyer interest.

Technical indicators are also showing improvement. The adjusted spent output profit ratio (aSOPR) has moved back above the breakeven point, indicating that coins moved on-chain are now being transferred at a profit overall.

Trump’s announcement comes ahead of a scheduled White House crypto summit on March 7, where further details about the strategic reserve may be revealed. The former president mentioned that he “loves” both Bitcoin and Ethereum, suggesting a broader approach to cryptocurrency adoption.

Market observers note that CME gaps often get filled, meaning the price typically returns to those levels before continuing its trend. However, the timing of such moves can be unpredictable, with some gaps from the 2021 bull market only filling during the subsequent bear market.

The week ahead features several potential market-moving events, including US employment data and a speech from Federal Reserve Chair Jerome Powell. These macroeconomic factors have historically influenced crypto market movements.

Current market data shows odds of Federal Reserve rate cuts this month at just 7%, according to CME Group’s FedWatch Tool. This comes as markets digest recent inflation data, including the Personal Consumption Expenditures (PCE) index.