US President Donald Trump took investors by surprise last weekend when he ordered his digital asset working group to create a cryptocurrency reserve that includes Bitcoin, Ether, Solana, XRP and Solana. After an epic pump, cryptographic markets reversed the course within 24 hours, leaving the bitcoin on the precipice of a downward trend reversal. Fear and concern have seized the markets, investors wondering if the Haussier market had ended prematurely.
A more in -depth examination of the economic cycle reveals that the Bitcoin Bull market (BTC) is far from dead. Things can be about to warm up once Trump’s trade war chaos has given rise to judicious trade policies with China, Canada and Mexico.
This week’s Crypto Biz newsletter explores Bitcoin through the objective of the economic cycle and tells of the market reaction to a cryptography reserve with several titles.
Trump Tanks Bitcoin, but there is a silver lining
Despite favorable regulatory tail winds for the crypto, the first month of Trump’s office was disastrous for the markets. Bitcoin suffered its worse February in a decade, and altcoins were decimated while Trump’s trade threats triggered a flight to security.
Fear seized the cryptographic markets, analysts and investors wondering if the BTC peak of the inauguration day of $ 109,000 was the top of this cycle. However, according to the manufacturing purchasing managers (PMI) index, the peak is not even close.
Throughout its history, the Bitcoin price closely reflected the PMI manufacturer, an important indicator for the economic cycle. For example, in 2017 and 2021, the top of the Bitcoin cycle was roughly aligned with the peak of the manufacturing PMI.
Source: Tomasonmarket
In January, the Manufacturer PMI entered the growth territory for the first time in more than two years, reporting that the economic cycle was held. According to the founder of Real Vision, Raoul Pal, the trends of the PMI point to a peak of the Bitcoin cycle at the end of 2025 or even at the beginning of 2026.
Despite the recent volatility, the Bitcoin Haussier market has probably not yet ended.
Coinbase, Gemini CEO LAMENT RETERNAL CRYPTO
The CEO of Coinbase, Brian Armstrong, and the CEO of Gemini, Tyler Winklevoss, say that a reserve of crypto that understands something else something other than Bitcoin would be a bad idea for the United States.
“A single digital asset in the world currently meets the bar and this digital asset is Bitcoin,” said Tyler Winklevoss of Gemini.
Armstrong de Coinbase agreed, saying: “Just Bitcoin would probably be the best option”, because it is the only “successor to gold”.
Even the notorious hateful bitcoin, Peter Schiff, said that he understood the digital gold thesis of the BTC, but saw no reason to include altcoins in a national cryptography reserve.
Source: Peter Schiff
Trump’s trade secretary Howard Lutnick later said that the administration would probably treat bitcoin differently from other assets in the crypto reserve.
Metaplanet buys the dip
The Japanese investment company Metaplanet added more bitcoin to its balance sheet, acquiring 497 BTC at an average price of $ 88,448. Once again, the acquisition has sent Metaplanet’s actions arrows, stressing the positive feeling of investors around digital assets. The company now holds 2,888 BTC worth around $ 251 million. According to industry data, only a dozen companies listed in public hold more bitcoin than Metaplanet.
Metaplanet is known as “Asia Strategy”, a reference to Michael Saylor’s commercial intelligence company has become Bitcoin Bank. In January, Metaplanet announced its intention to raise more than $ 700 million to finance future Bitcoin purchases.
Bitcoin miners miners of minors
The extreme volatility of Bitcoin has exerted pressure on public minors, which were already tense by the quadrennial event of quadrian ribs of the network last April. According to JPMorgan, Bitcoin extraction actions collectively plunged 22% in February. The analysis included riot platforms, Bitdeer, Digital Marathon and Core Scientific, among others.
Practically all companies have seen their stock market course after declaring quarterly profits in February – even Core Scientific, who declared sales better than expected in the last three months of 2024.
Given half the bitcoin reduction, minors’ revenues and gross profits decreased on average by 46% and 57%, respectively, according to JPMorgan.
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