Bitcoin Surges Past $89K as Trump Announces Crypto Reserve

Coin WorldWednesday, Mar 5, 2025 5:37 am ET

1min read

Bitcoin, the world's leading cryptocurrency, has surged above $89,000, marking a significant milestone in its ongoing bull run. The recent price movement has been characterized by high volatility, with the asset experiencing both gains and losses in the past few days.

On March 3, Bitcoin nearly touched $89,000 in the early evening before losing some of its gains overnight. Ethereum, the second-largest cryptocurrency by market value, was choppy throughout the day, shuttling between gains and losses. Meanwhile, Dogecoin remained relatively flat.

Analysts have attributed the recent price surge to several factors, including President Donald Trump's announcement of a U.S. strategic reserve of cryptocurrencies, which includes Bitcoin. This initiative aims to establish the U.S. as a leader in the digital asset space, boosting investor confidence and triggering a market-wide rally.

Technical analysis indicates that Bitcoin's immediate support is around $89,000, a level previously tested during the recent consolidation phase. A drop below this could see Bitcoin testing the $85,000 mark. The primary resistance is at $95,195, a level where Bitcoin faced selling pressure during its recent surge. A successful breach could pave the way towards the psychological $100,000 mark.

Market indicators suggest that Bitcoin might be due for a correction in the short term, as the Relative Strength Index (RSI) is approaching overbought territory. However, the asset's price is trading above both the 50-day and 200-day moving averages, indicating a sustained bullish trend.

On-chain data reveals heightened network activity, with a 3.5% increase in active addresses over the last 24 hours and a 24-hour trading volume surge to $35.2 billion. This indicates growing user engagement and increased market participation.

Analysts have varying perspectives on Bitcoin's trajectory. Some anticipate that Bitcoin could reach $135,000 by August or September 2025, citing historical patterns and increased institutional adoption. However, concerns about regulatory challenges and potential market corrections could limit Bitcoin's upward momentum.

Bitcoin's price surge underscores its sensitivity to macroeconomic developments and regulatory announcements. The establishment of a U.S. strategic

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