Today’s markets analysis on behalf of Konstantinos Chrysikos Head of Customer Relationship Management at Kudotrade
10th March 2025
Bitcoin rebounded after a steep decline last week. The latter followed the market’s reaction to U.S. President Donald Trump’s executive order creating a strategic Bitcoin reserve. This reserve will be funded by Bitcoin seized in criminal and civil forfeitures, and there are no immediate plans for the U.S. government to purchase additional Bitcoin. The lack of an aggressive acquisition strategy led to short-term disappointment, resulting in Bitcoin dipping temporarily below the USD 80,000 support level.
While the immediate market reaction was negative, the reserve could signal a stronger government recognition of Bitcoin as an asset, offering structural support. The creation of the strategic reserve may encourage other countries to follow suit, potentially increasing Bitcoin’s role in the global financial system, and stabilizing its market position.
Meanwhile, institutional support continues to grow, with developments such as Spain’s BBVA bank gaining approval to offer Bitcoin and Ethereum trading services. The integration of cryptocurrencies into mainstream financial systems could increase retail access to cryptocurrencies, potentially ensuring sustained long-term growth for both Bitcoin and the broader crypto market.
