Bitcoin is the most well-known digital coin in the world, the asset that has served as a blueprint for the entire cryptocurrency ecosystem.
As a result, it also has the highest market cap level of the entire ecosystem, and its movements affect all the other cyber tokens. When Bitcoin performs well, so do the altcoins, as the entire marketplace is energized, although its lack of dominance in the ecosystem has sometimes been correlated with some of the other coins having a stronger run. In spite of that, Bitcoin has never been surpassed by any of its successors and remains the most reliable cryptocurrency, according to most investors.
Its reliability causes many to start investing in BTC in bigger numbers when things aren’t going so well and the economic outlook is not the best. In the fourth quarter of 2024 Bitcoin broke its own records, climbing to a six-figure price for the first time in its history. Corrections have occurred since then though, so traders are still looking to gain insights into the latest BTC price prediction figures. Having a comprehensive view of these value shifts can help you make more objective decisions and safeguard the integrity of your portfolio.
Losses
Given Bitcoin’s popularity among investors, it shouldn’t come as a surprise that the ongoing pullback hasn’t gone unnoticed. Although the current price point is much higher than the all-time highs recorded in previous years, a lot of investors are waiting for a return to the $110,000 ATH of January. However, analysts currently believe that it might be some time until that level is reclaimed and that traders will have to wait and adjust their strategies accordingly in the meantime. Right now, the market is going through a period of consolidation as a result of liquidity needs.
Long positions are predicted to become more viable in the near future as short-term holders begin selling and long-term holders proceed to buy again. As a result, long positions become viable, but investors should be wary of taking substantial risks during times like these. If you have a high tolerance for transactions and ventures that are more high-risk, you should probably change your habits a little bit during the next couple of months. Before the all-time high of January occurred, short-term holders started building their supply and long-term holders decreased theirs via selling.
The $110,000 level caused a drop of approximately 100,000 coins from the long-term holder supplies during the next month. On December 1st, this figure reached 15.2 million coins, then plunged to 14.7 million by December 20th. As of March 2025, long-term supply was 14.4 million BTC, 800,000 tokens fewer compared to early December.
Strategic Bitcoin Reserve
The Strategic Bitcoin Reserve was announced by US President Donald Trump and signed on March 6th, 2025. The reserve asset was funded by the forfeited Bitcoin belonging to the US Treasury. A separate stockpile for altcoins has also been created, with Trump saying that he wishes for the United States to become the crypto capital of the world. The United States is already the largest known state holder of Bitcoin on the planet, with the total amount owned being approximately 200000 BTC as of the first quarter of 2025. The move has been deemed controversial by some economists, who don’t see BTC as a reliable venture and don’t trust its ability to retain value over the long term.
The executive order established the strategic reserve as a permanent asset, with agencies set to explore Bitcoin transfers in this manner. The United States won’t sell any of these coins and could create taxpayer strategies that are more neutral in the future in order to make acquisition easier. There’s also a specific requirement for all agencies to account for all their cyber holdings to the President’s Working Group on Digital Asset Markets.
Macro aspect
Although Bitcoin has been dealing with a certain degree of price pressure, macro trends and shifts in the regulatory framework are likely to boost values in the near future, reclaiming the latest all-time high and potentially even surpassing it. On March 11th, Bitcoin reached a low of $76,703 but has since corrected those losses and climbed by almost 10%. This shift has largely been propelled by big investors who have bought the dip with leverage. Margin longs are recording bullish leveraged positions as well, indicating that most traders are confident about the potential of digital gold in spite of the recent price decreases.
There are also some who consider the price of Bitcoin to be directly correlated to the global monetary base, which means that values rise as central banks integrate liquidity. Recession fears are still looming, and although Bitcoin is entirely decentralized, it is nonetheless impacted by shifts in traditional economic systems. As of now, the impact of a US government that is more crypto-friendly has not yielded any practical results, with more developments expected to occur in the future. For instance, the OCC, the Office of the Comptroller of the Currency, has not yet clarified whether banks will be able to hold digital assets and manage stablecoins without previous approval.
The Securities and Exchange Commission is reviewing requests from spot ETF issues that would allow shares to be exchanged for Bitcoin, replacing the standard, cash-based methods. The fact that economic decline seems increasingly likely according to sources such as JPMorgan, Bitcoin’s price will likely be under pressure once more. Some investors and analysts believe the opposite is likely, with the possibility of unique conditions arising and creating an environment that will allow BTC to make considerable gains.
If you’re an investor, make sure to adjust your game plan accordingly and always keep up with the latest developments in the sector. The crypto world is constantly shifting and changing, so keeping up with it is no easy task. However, doing so is imperative for your financial well-being. Although it can be tempting to rush and make impulsive decisions, it is much more likely to do yourself more harm than good. The calculated approach is the only one that will allow you to see long-term results and actually consolidate your portfolio.
