Bitcoin’s explosion and cryptocurrencies will be massive

Bitcoin (BTC) is going through a price setback from its historical maximum that, according to various market data, could be a temporary phenomenon.

Financial markets are experiencing high volatility in the face of tariff policies to imports in the United States. President Donald Trump paused yesterday for 90 days the taxes he had put for all countries, except for China. For the latter, it raised the rates to 125%.

With this, both cryptocurrencies and global bags reacted upwards, after weeks of tension. Particularly, US actions caught attention by obtaining historical increases of around 10% in just one day.

In other words, Trump’s decision has been received with enthusiasm in the marketsafter the actions decay at prices not seen in more than a year. Likewise, Bitcoin, who had shown greater resistance to tariff policies, has benefited.

The Bitcoin price, as the following graph exhibits, climbed to the USD 83,000, after its decrease to USD 74,000, its minimum in four months. The correction to this point implied a 32% drop in its historical maximum of USD 109,000 reached in January on Trump’s presidential assumption day.

In this sense, while the market does not fall again, This recovery predicts the possibility that you have not started a bearish cycleas is afraid in the ecosystem.

The cryptocurrency market remains strong despite cooling

The coinbase cryptocurrency exchange showed this week, in its March report, which There are optimistic data despite market cooling. The Stablecoins supply reached a new historical maximum of 234,000 million dollars (USD) in such a month, highlighting USDC with a USD 60.1 billion record, a monthly growth of 6.5%.

In addition, the total blocked value (TVL) in Ethereum, Solana and base increased when adjusted by the price changes of their respective native tokens. «Since a large part of the TVL is composed of the native token of each network, this growth suggests, in our opinion, that the interest in adoption in networks remains solid,» said Coinbase.

«The activity in cryptocurrency networks remained strong,» summarized exchange. This happens despite the fact that their trade volumes fell into all types of instruments, while Bitcoin won dominance in trading spot.

The company also highlighted that March was The month with higher risk capital uprisings in cryptocurrencies in almost three yearswith $ 3.6 billion tickets. Most came from Abu Dhabi, which deposited USD 2,000 million in Binance.

Even without counting the ABU Dhabi operation, investments in risk capital were 50% higher than those of a year ago. This reflects a growth signal in the market, against winds of macroeconomic voltage.

According to a new report by the company broadcasting company in cryptoactive, Ark Invest, the supply of Bitcoin long -term investors with unrealized losses reached a maximum of almost 3.5 million BTC, a level not seen since 2018.

Besides, Bitcoin’s price tends to reach its maximum cyclic when at least 80% of its supply has a 100% yield or higher in relation to the purchase point. In the current cycle, this metric has not exceeded 68%.

According to Ark Invest, this suggests the absence of irrational exuberance typical of the global market peaks. «As a result, the price of Bitcoin could maintain its bullish impulse if it improves demand,» he emphasizes. A positive support indicates that the price remains well above the average of the total supply of investors, which oscillates the USD 64,000.

In any case, this last company warns that, although the main trend remains bullish, the recovery of the price above key lines, such as the cost of short -term investors and the 200 -day mobile average, will be necessary to recover the impulse. Such metrics closed March to USD 93,433 and USD 86.068, respectively, as figure below.

As a risk, clarifies the broadcaster that the increase in credit differentials and the fall in consumer confidence point to bearish expectations for economic growth, labor market and financial stability. Given this, «the market could be discounting the worst possible scenario, with strong short positions that would amplify the movements,» he says.

However, consider Ark Invest that The actions are reacting more than the foundations suggest. In this sense, although there are risks on the horizon, it still maintains bullish expectations.

The growing liquidity is an advantage for Bitcoin

«I’m still very optimistic about Bitcoin,» said Utam Dey’s investor and analyst due to the resistance he exhibits. This is aimed at regulatory environments on the way to becoming more friendly to the market and global liquidity, which is still increasing despite global tensions.

Explain that Global liquidity is extremely crucial for Bitcoin. The reason is that most asset classes, especially risk assets, follow a general rule: «more money that circulates at higher assets prices,» he details.

For the analyst, institutional investments, as well as the creation of the Bitcoin Strategic Reserve of the United States Government and withdrawals of judicial cases in the industry, reinforce the perspectives and adoption of this asset.

With this context, both Bitcoin and cryptocurrencies could have a forceful recovery, in case macroeconomic fears decrease. However, it is crucial that operators consider the risks, especially due to the volatility generated by Trump’s measures.

Although, even if economic uncertainty follows, recognized entities warn that Bitcoin could be favored from this scenario. Among them, the British multinational bank Standard Chartered points out that BTC could become a key tool to protect itself from the risks of the «tariff war».

The bank’s forecast arises from the best performance in front of other classes of assets. This observation is in tune with the substantial price projection that Geoffrey Kendrick, Global Director of Standard Chartered digital asset research in February.

Kendrick then projected that the price of Bitcoin will rise to USD 300,000 by 2026, USD 400,000 in 2027 and USD 500,000 in 2028, stabilizing at that level until 2029. This would mean that the current fall is a good purchase opportunity, although not everyone considers it so.

In general, the specialists agree that the Bitcoin upward cycle will have its end this year, with new records if the USD 109,000 has not been the peak. This will depend on the development of the market environment that continues with uncertainty, despite the relief that generated the pause of tariffs in the United States.