End of the bull market or a golden opportunity to buy the dip?
Executive Summary:
During this first week of March, financial markets and the cryptocurrency sector experienced significant events that impacted short- and medium-term projections. The start of a trade war is generating tensions in international trade. At the same time, the US economy showed signs of slowing down, with indicators suggesting a possible contraction in the first quarter. In cryptocurrencies, the signing of an executive order to establish a strategic reserve of bitcoins highlighted the growing influence of digital assets in government policies and the first crypto Summit organized by the White House marked a historic event, which will surely be positioned in the history books as a key day in the history of Bitcoin.
Top News of the Week:
Trump starts trade war with Mexico and Canada by applying 25% tariffs
President Donald Trump imposed 25% tariffs on imports from Mexico and Canada (and an extra 10% on China), using fentanyl as a pretext. There had already been a lot of talk about these tariffs and with each passing week the tariffs were postponed or momentarily paused. It seems that this week continues to be another chapter in this novel.
This measure breaks the trade agreement between the three countries, affecting supply chains and pushing inflation up. It is anticipated that both Mexico and Canada could enter a recession, while the US economy will also be affected, news that the financial and crypto markets did not take kindly and marked falls of more than 10% in the week.
The US economy shows signs of slowing down under the Trump administration.
After showing strength during Joe Biden’s term, the US economy is beginning to deteriorate with Donald Trump back in the presidency. The Atlanta Federal Reserve predicts a possible contraction in the first quarter due to the decrease in consumption, foreign trade and tariff uncertainty (an event almost guaranteed by most investment funds). Economists point out that trade policy and persistent inflation are negatively affecting consumer confidence and, above all, marking strong falls in financial markets.
The S&P500 has maintained a movement of more than 1% at the close for 7 days. The longest streak since the end of 2020.Negative Gamma terrain generates greater willingness to react, in any direction.
Trump signs executive order to establish a Bitcoin strategic reserve
President Trump signed an executive order to create a Bitcoin strategic reserve, using approximately 200,000 bitcoins confiscated by the government (mostly coins confiscated on Silk Road from Ross Ulbricht). This measure seeks to position the United States as a world leader in cryptocurrencies. The news did not take long to come out and several countries are already beginning to talk about the possibility of forming a reserve of this type as well.
One fact that disappointed the crypto community was the statement that no bitcoin or cryptocurrency will be purchased for this American reserve, only coins confiscated by the government will be used. At the time of the announcement, a fall in BTC of almost 4% was noted.
As a curious anecdote, we will mention that Alexandre de Rothschild, CEO of Rothschild & Co (the famous Rothschild family, who are said to be the “owners of the world”), expressed discomfort with the volatility of cryptocurrencies, preferring not to invest directly in them. It would not be strange that while they declare one thing, behind closed doors they do another to avoid a conflict of interest in their speculations.
Crypto leaders meet at Trump’s summit with strategic reserve in focus
Last Friday, March 7, 2025, the White House was the scene of the first “Crypto Summit”, an event that brought together the main leaders of the cryptocurrency industry with the president of the United States, Donald Trump. The main objective of the meeting was to outline strategies to position the United States as a world leader in the crypto sector and to discuss the recent presidential initiative to establish a Bitcoin strategic reserve. The entire community was waiting for possible bullish news that could come out of there.
List of Attendees:
Among the most prominent participants in the sector we find:
Zach Witkoff, co-founder of World Liberty Financial (a company linked to President Trump)
Brian Armstrong (co-founder and CEO of Coinbase)
Brad Garlinghouse (CEO of Ripple)
Vlad Tenev (CEO of Robinhood)
Arjun Sethi (CEO of Kraken)
Michael Saylor (Founder and Executive Chairman of MicroStrategy)
Sergey Nazarov (Co-founder of Chainlink)
Kyle Samani (Managing Partner at Multicoin Capital)
Zach Witkoff (Co-founder of WLFI)
JP Richardson (CEO of Exodus)
Matt Huang (Co-founder of Paradigm)
David Bailey (CEO of Bitcoin Magazine)
Famous Winklevoss Brothers (founders of Gemini)
Kris Marszalek (CEO of Crypto.com)
Highlights of the summit:
The summit generated multiple headlines in the media In both specialized and general markets, the community was quick to respond with memes and market speculation:
Trump’s statements: The president reaffirmed his commitment to supporting the crypto sector as he has been doing even before taking office, highlighting the importance of fair regulation that encourages innovation and protects investors, and also spoke of encouraging the use of blockchain technology at the state level.
Strategic Reserve Details: As we said earlier, it was revealed that the reserve will be funded with bitcoins confiscated in illegal proceedings, avoiding additional costs for taxpayers when purchasing crypto assets for the reserve.
Market Reactions: Despite expectations, the crypto market showed a slight drop after the announcement, attributed to the absence of direct government purchases of Bitcoin (and in fact to the sale of BTC by the main ETFs that have been selling in recent days).
Fear & Greed Index:
The Fear & Greed Index, which measures market sentiment towards cryptocurrencies, stood at 33 this week, in the fear sector. This reflects the caution and caution of investors in the face of volatility in recent weeks and global economic uncertainties due to political changes taking place. As of today, it is in Extreme Fear as markets open with sharp declines today, Monday, March 10.
Main movements of the week in the top cryptocurrencies:
On-Chain Metrics:
Stablecoin Market Cap:
The total stablecoin market cap remained stable at approximately $200 billion USD during the week, indicating a constant demand for digital assets linked to fiat currencies, since we do not see an uptick in stablecoins it means that most people prefer to have their money in bitcoin or cryptocurrencies.
On-Chain Volume:
The on-chain transaction volume of Bitcoin and Ethereum showed a slight decrease of 2% compared to the previous week, which allows us to see a slight decrease in the use of the network and a possible tendency to continue decreasing during these weeks of decline.
In conclusion, we would like to mention a reflection that we have been making during the last installments of this report: keep your head focused on the opportunities, every day we have new opportunities whether the market goes up or down (even more so when it goes down) do not fall into fear or speculation about the news. Surely in the coming weeks we will continue to see a high level of volatility and possible falls in the market.
Conclusion
In conclusion, we would like to mention a reflection that we have been making during the last installments of this report: keep your head focused on the opportunities, ever y day we have new opportunities whether the market goes up or down (even more so when it goes down) do not fall into fear or speculation about the news. Surely in the coming weeks we will continue to see a high level of volatility and possible falls in the market.