Bitcoin Makes a Strong Comeback This Week: U.S. President Trump Appears to Approve Crypto Reserves

Bitcoin bounced back with a $10,000 “green” candle, triggering a CME futures gap. U.S. President Trump, ahead of the White House crypto summit, expressed support for a strategic crypto reserve, stating he “loves” Bitcoin and Ether.

These statements lifted Bitcoin out of a bear market, bringing it close to a new all-time high with a 16% gain. The crypto market reacted with excitement, discussing the long-term effects of the announcement.

The Kobeissi Letter noted that Bitcoin has emerged from the bear market and is nearing a new peak.

Coinbase Premium Index and Trump’s Statements

Another key development in the crypto market is the Coinbase premium index turning positive, indicating increased buying demand in the U.S. and a decrease in selling pressure. CryptoQuant pointed out that while the index shows signs of recovery, strong institutional buying has yet to be observed.

Nevertheless, the market remains cautious. As of March 3, the Crypto Fear & Greed Index is still in the “fear” zone, though it has shown a significant recovery in recent weeks.

Market sentiment is waiting for further confirmation, especially due to the political implications of Trump’s statements. CryptoQuant’s Crypto Avails noted that while Trump’s “crypto reserve” announcement could fuel the market, there’s a possibility of a reversal in the future.

Fed Chair Powell to Speak and Employment Data to Be Released

The remaining macroeconomic developments for the week focus on U.S. employment data. Initial jobless claims will be released on March 6, followed by the U.S. jobs report the next day. Jerome Powell, the Fed Chair, will also speak on the day of the crypto summit.

These developments may bring volatility to the crypto market, with changes in the labor market and Fed’s interest rate policies expected to impact market sentiment.

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