Bitcoin's upward market is not yet dead

The president of the United States, Donald Trump, took investors by surprise last weekend when he addressed his digital asset work group to create a cryptocurrency reserve that includes bitcoin, Ether, Solana, XRP and Solana. After an epic bomb, cryptographic markets reversed the course in 24 hours, leaving bitcoin in the precipice of a bearish trend investment. Fear and restlessness seized the markets, and investors wondered if the upward market had ended prematurely.

A look closer to the economic cycle reveals that the bitcoin Bull (btc) market is far from being dead. Things can be about to warm once Trump's chaos of commercial warfare gives rise to sensible commercial policies with China, Canada and Mexico.

This week's crypto Biz Bulletin explores bitcoin through the economic cycle lens and tells the market reaction to a multicurrence cryptographic reserve.

Trump Tanks bitcoin, but there is a positive side

Despite the favorable regulatory tail winds for cryptography, Trump's first month was disastrous for markets. bitcoin suffered his worst February in a decade, and the Altcoins were decimated when Trump's commercial threats triggered a flight to security.

Fear has grabbed cryptography markets, with analysts and investors who wonder if the btc peak of the opening day of $ 109,000 was the best for this cycle. However, according to the manufacturing purchasing managers index (PMI), the peak is not even close.

Throughout its history, the price of bitcoin has closely reflected the manufacturing PMI, an important proxy for the economic cycle. For example, in 2017 and 2021, the upper part of the bitcoin cycle aligned approximately with the manufacturing PMI peak.

In January, the manufacturing PMI entered the growth territory for the first time in more than two years, indicating that the economic cycle was expanding. According to the founder of Real Vision Raoul Pal, the trends in 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, bitcoin's upward market probably has not yet ended.

Coinbase, Gemini Ceo lament crypto Reserve

The CEO of Coinbase, Brian Armstrong, and the CEO of Gemini, Tyler Winklevos, say that a cryptographic reserve that includes anything other than bitcoin would be a bad idea for the United States.

“Only a digital asset in the world at this time meets the bar and that digital asset is bitcoin,” said Tyler Winklevos de Gemini.

Armstrong of Coinbase agreed, saying: “Only bitcoin would probably be the best option”, since he is the only “successor of gold.”

Even the famous Hater bitcoin Peter Schiff said that btc's digital gold thesis understood, but he saw no reason to include Altcoins in a national cryptography reserve.

Trump's Secretary of Commerce, Howard Lutnick, clarified that the Administration would probably treat bitcoin differently from other assets in the crypto Reserve.

Metaplanet Buy the sauce

The Japanese investment firm Metaplenet has added more bitcoin to its balance, acquiring 497 btc at an average price of $ 88,448. Once again, the acquisition sent the actions of Metaplenet to the rise, which underlines the positive feeling of investors around digital assets. The company now has 2,888 btc for a value of approximately $ 251 million. Only a dozen companies that quote on the stock market have more bitcoin than Metaplanet, according to industry data.

Metaplenet is known as “Asia strategy”, a reference to Michael Saylor's business intelligence firm turned into Bitcoiin Bank. In January, Metaplenet announced plans to raise more than $ 700 million to finance future purchases of bitcoin.

bitcoin miners postcalling problems

The extreme volatility of bitcoin has exerted pressure on public miners, which were already tensioned by the middle of the square halves of the network last April. According to JPMorgan, bitcoin's mining actions collapsed by 22% in February. The analysis included Riot, Bitdeer, Digital Marathon and Core Scientific platforms, among others.

Virtually all companies saw the prices of their shares fall after informing quarterly profits in February, even Core Scientific, which reported better sales than expected in the last three months of 2024.

Since half of half of the bitcoin, the income of the miners and the gross profits have decreased by an average of 46% and 57%, respectively, according to JPMorgan.

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