Bitcoin (BTC) has been experiencing high volatility in recent trading as investors have proved exceptionally reactive to rumors and news.
So far, the cryptocurrency market has gone from shedding tens, even hundreds of billions of dollars in value to adding similar amounts on almost a daily basis as the Trump administration brings instability with its trade war or hope with its promises of a strategic BTC reserve.
Howard Lutnick, the billionaire Secretary of Commerce, may have revealed the next major catalyst for Bitcoin – due as soon as March 7.
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Why Bitcoin is set for a strong rally
This Friday, the White House is set to host a digital assets conference – an event likely to be a market catalyst in its own right – and Lutnick hinted that it will feature a major announcement regarding the creation of a strategic cryptocurrency reserve.
Despite appearing exceptionally bullish at face value, the situation may constitute a ‘buy the rumor, sell the news’ event. The hope that the reserve order would finally come has triggered a BTC rally, leading to its press time price of $91,268.
The strength of this upsurge, however, hasn’t been entirely decisive, and investors have shown their lack of certainty with the initial rise petering out just above $92,000, a correction toward $88,000, and, finally, another soaring to the aforementioned value.
Another indication that the chances for a breakthrough are low came in late February when Senator Cynthia Lummis – a well-known proponent of Bitcoin – opined that the federal government is unlikely to begin stockpiling cryptocurrency for a long time and that the first developments would probably come from individual states.
Will Bitcoin soar or crash this weekend?
Still, BTC’s recent fluctuations indicate that the coin is likely to see its value explode should there be any announcements on Friday before entering a period of extraordinary volatility. The subsequent direction will likely depend on the specifics of the announcements and any additional moves made by the government regarding the economy.
Indeed, whatever the actualities prove, it is almost guaranteed that the coming days – and the weekend with its lower volume – will provide both buying and selling opportunities for those willing to be described as ‘losers’ by Robert Kiyosaki.
Is going long on BTC still the best bet?
Holding long-term, on the other hand, might be the winning strategy no matter the prevailing turbulence.
History shows that Bitcoin is not likely to have plateaued in the current cycle. Considering the latest halving took place in April 2024, the top is expected later in 2025, meaning that a new high should come within a few months.
This is reinforced by BTC’s resilience to stay relatively decisively above $80,000 and, more recently, above $82,000 despite the tumult. On the other hand, the coin’s failure to sustainably breach $92,000, even when supported by significant upward momentum, does leave room for caution.
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