Safe Haven Surge
Over the past week, the cryptocurrency market has experienced choppy conditions, with no significant catalysts driving prices in either direction. This uncertainty has led many investors to adopt a cautious stance, opting to remain on the sidelines amid heightened market fear. Concurrently, traditional safe-haven assets like gold have seen substantial gains, as investors seek stability away from riskier assets.
Bitcoin Dominance Rises
Bitcoin's market dominance has recently surged to approximately 62%, marking its highest level since 2021.This increase highlights a shift in investor preference towards Bitcoin over alternative cryptocurrencies, commonly referred to as altcoins.
Bitcoin Dominance Chart
The current elevated Bitcoin dominance suggests that altcoins may continue to underperform in the near term. A potential reversal in this trend would likely require more favourable market conditions, which could emerge in the coming months as the market consolidates and investor confidence returns.
Weekly Price Update
BITCOIN Act of 2025: Boost Strategic Bitcoin Reserve to 1 Million BTC
Senator Cynthia Lummis recently reintroduced the Boosting Innovation, Technology, and Competitiveness through Optimised Investment Nationwide (BITCOIN) Act of 2025, proposing the U.S. significantly increase its existing Bitcoin Strategic Reserve, potentially acquiring up to 1 million Bitcoin over five years.
Here’s the political landscape (data from Stand With Crypto):
- Senate Support: 61% of Senators (61 out of 100) support Bitcoin.
- House Support: 65% of House members (285 out of 435) are in favour.
- Presidential Approval: The President is supportive of Bitcoin.
What this means for Crypto:
The implications are substantial as such a bold move by the U.S. government would validate Bitcoin even more as a top class strategic reserve asset, likely prompting other nations to consider similar steps. Given Bitcoin's strictly limited supply of 21 million, large-scale governmental accumulation would drastically reduce available supply, increasing demand and potentially triggering significant price appreciation. Moreover, expanding the Bitcoin reserve could strengthen the U.S.'s economic resilience against traditional market volatility, reinforcing Bitcoin's role as a reliable store of value and potentially accelerating its adoption globally.
North Korea Buy Bitcoin
North Korea has recently moved into position as the third-largest sovereign holder of Bitcoin, surpassing both Bhutan and El Salvador. Following their theft of approximately $1 billion worth of Ethereum from crypto exchange Bybit, on-chain data from Chainalysis confirmed they rapidly converted most of these stolen ETH assets into Bitcoin. This strategic conversion of Ethereum into Bitcoin indicates a deliberate approach rather than speculative trading, suggesting North Korea is actively building a significant BTC reserve. The scale and speed of their recent BTC accumulation point clearly toward the establishment of a strategic Bitcoin reserve, a move that carries profound geopolitical implications, particularly as more nations consider Bitcoin as part of their national reserves.
Bitcoins Parabolic Curve
Bitcoin continues to hold within its parabolic curve, maintaining support on the weekly chart despite the broader macro and geopolitical headwinds. The recent market crashes have been largely driven by rising inflation concerns, high-interest rates, geopolitical instability (Ukraine-Russia tensions, U.S. involvement, and trade wars), and liquidity tightening, all of which have weighed on risk assets. Despite these challenges, BTC remains structurally intact within its growth trajectory, reinforcing its resilience compared to traditional assets.
Bitcoin Price
While this parabolic trend provides a strong visual representation of Bitcoin’s long-term trajectory, it’s important to note that macro uncertainty could weaken its relevance as a support level in the short term. However, it serves as a reminder of Bitcoin’s outperformance relative to traditional markets, as well as the fact that BTC, even after a significant correction, is still trading well above the previous cycle's all-time high (ATH).
From here, BTC could either bounce off this level or find a new trading range around $70K before its next move. With potential rate cuts in 2-3 months, the market could be setting up for another leg higher, especially if macro conditions begin to ease. Until then, Bitcoin remains in a consolidation phase within a broader bullish structure.
Ethereum's Lacklustre Performance Continues
Ethereum's lacklustre performance continues, marking the first time in the last 10 years that ETH has started the year with three consecutive red months. With Ethereum down over 43% in Q1, this is one of the weakest starts in its history.
One of the key reasons for this underperformance is lack of institutional and global adoption, particularly in the ETF space. While there was a small resurgence in investor interest in December, enthusiasm has dropped off dramatically since then. Even with the backing of World Liberty Finance (a Trump-affiliated entity) and the announcement of a U.S. digital asset stockpile, ETH has failed to show strength relative to competitors.
Ethereum's weakness is especially apparent when compared to Solana, which had been a major out-performer in 2024 and before experiencing its own sharp correction. While SOL has shown strong ecosystem growth and continued interest, ETH has struggled to capture market momentum, raising concerns about its positioning in this cycle. That said ETH is the king smart contract blockchain and remains the key development hub for DeFi and other new applications, and a market bounce for ETH will likely trigger a broader positive market sentiment shift.
Proof Of Success Podcast - Scams & Market Manipulation
On this episode of Proof Of Success we expose the dark side of crypto, from rampant scams and market manipulation to the major economic forces shaping the industry’s future. Whether you’re an investor looking to safeguard your assets or someone navigating the volatile crypto space, this episode provides critical insights into protecting yourself and understanding the broader market landscape.
To Watch Now
Join UpTrade Alpha: HERE
Listen on Spotify: HERE
FOMC Upcoming on March 19: Rates To Stay The Same
The upcoming FOMC meeting on March 19 is widely expected to keep interest rates unchanged as the Fed assesses the impact of previous hikes on inflation and economic conditions. While holding rates steady may temporarily ease pressures on markets, investors are primarily looking ahead to May and June, where markets are currently pricing in a 45% and 70% probability of rate cuts, respectively. These anticipated cuts signal growing expectations for a shift toward monetary easing in mid-2025, which could significantly boost investor sentiment and potentially drive a more sustained recovery in risk-on markets, including crypto. We are closely watching Powell’s commentary for any indication of how soon the Fed may pivot from its current high-rate environment.
