TLDR
- Bitcoin price has rebounded to $92,532, up 6.9% in 24 hours after falling below $80,000 last week
- Short-term holders (STH) are increasing their supply while long-term holders (LTH) are selling
- Donald Trump will reveal more plans for a Bitcoin strategic reserve at Friday’s White House crypto summit
- Market analysts suggest Bitcoin may be entering a consolidation phase following its recent all-time high
- Active Bitcoin addresses have surged to their highest level since December, indicating increased on-chain activity
Bitcoin has bounced back from its recent decline, with prices now trading at $92,532, marking a 6.2% increase in the past 24 hours. This recovery comes after Bitcoin dipped below $80,000 last week due to concerns about slowing U.S. growth and fears of a global trade war.
The rebound coincides with President Donald Trump preparing to host the White House’s first crypto summit on Friday. U.S. Commerce Secretary Howard Lutnick told The Pavlovic Today that Trump will share more details about his plans for a Bitcoin strategic reserve during this summit.
Trump has previously mentioned creating a government-backed crypto reserve. Last week, he named five cryptocurrencies for potential inclusion: Bitcoin, Ether, XRP, Solana, and Cardano.
However, questions remain about how this reserve would be formed. An executive order would limit available funds, while going through Congress might face resistance from lawmakers focused on reducing government spending.
What the Analysts Say
Market analysts have noted a shift in Bitcoin’s supply dynamics. Data from CryptoQuant shows short-term holders are increasing their supply while long-term holders are reducing theirs.
This transition typically happens after Bitcoin reaches new price peaks. Long-term investors sell their assets to take profits, while short-term traders enter the market, often driven by speculation.
XBTManager, a CryptoQuant contributor, explains that this pattern may signal a pullback phase following Bitcoin’s recent all-time high. The market could enter a period of price consolidation as a result.
Despite potential consolidation, institutional buyers and ETFs continue to accumulate Bitcoin. MicroStrategy, a major corporate Bitcoin investor, has followed retail buying patterns during this phase.
While institutional inflows support Bitcoin’s price, some analysts warn that a longer consolidation period is possible due to liquidity demands in the market. The analyst suggests that market stability may return once short-term holders begin selling and long-term holders start buying again.
CryptoQuant reports that real spot demand has been declining. This means that despite recent price gains, sustained upward momentum may be difficult without renewed demand.
IntoTheBlock, another market analysis firm, recently revealed a surge in active Bitcoin addresses following last week’s price drop. The daily average of active addresses reached its highest level since December, when Bitcoin surpassed $100,000.
Last week’s drop triggered a surge in active addresses, pushing the daily average to its highest level since December, when Bitcoin surpassed $100k.
This uptick in on-chain activity coincided with an increase in zero-balance addresses, indicating capitulation. pic.twitter.com/eiESdiwERN
— IntoTheBlock (@intotheblock) March 4, 2025
This increase in on-chain activity often occurs during market transitions. The data also showed an increase in zero-balance addresses, which may indicate some investors selling their entire holdings.
Trump’s recent actions in other economic areas may also be influencing market sentiment. He has made some concessions in his 25% tariffs against Canada and Mexico, though tariffs against China remain in place.
The president has also indicated plans for more trade duties in April. These trade decisions have impacted overall risk appetite in financial markets, with Bitcoin’s movements often correlating with broader market trends.
As Friday’s crypto summit approaches, investors will be watching closely for any clarity on regulatory frameworks. Trump has already signed several executive orders to explore regulations for cryptocurrencies.
For now, market participants are monitoring supply trends, ETF inflows, and liquidity conditions to assess Bitcoin’s next move. If long-term holders return to the market and demand recovers, Bitcoin could see renewed upward momentum.
