BTC’s Last Existential Risk Is Gone with Trump’s Bitcoin Reserve, Says Bitwise CIO

In an audacious and surprising move, President Trump’s executive order establishing a U.S. Strategic Bitcoin Reserve has altered the crypto landscape virtually overnight. By officially holding Bitcoin as part of the nation’s financial strategy, the U.S. government has effectively put to rest longstanding fears of a governmental crackdown. Beginning with approximately 103,500 BTC seized from criminal cases, the Bitcoin reserve signals a dramatic shift – Bitcoin is no longer seen as a “rogue asset” but a legitimate financial hedge. Such an unscripted endorsement may be a pivotal moment for the adoption of crypto in the mainstream.

Bitcoin: From Speculative Gamble to Strategic Asset

For years, Bitcoin was viewed as a high-risk, high-reward gamble. Concerns over regulation, exchange hacks, and its association with criminal activity kept many traditional investors at bay. But that narrative is rapidly changing. With the U.S. now openly holding Bitcoin, it sends a strong message—BTC is no longer just a speculative play; it’s a legitimate store of value. Bitwise CIO Matt Hougan believes this move makes Bitcoin the “best backup plan on the market,” even suggesting it could be a stronger safety net than competing currencies like the Chinese yuan if the U.S. dollar ever faces serious threats.

BTC Institutional Confidence Grows as Allocations Increase

With government support reducing the uncertainty and providing more BTC institutional adoption and confidence, Bitwise has reported their clients have increased their BTC exposure from approximately 1% to 3% in the past two years, and Hougan expects that exposure to climb to 5%+, as more investors realize Bitcoin’s new legitimacy. This accumulation of trust through allocation in their portfolios creates even more seriousness and price action for Bitcoin. Let’s review the latest price action and technical analysis, which are both playing a role in BTC’s price direction.

Price Analysis and BTC Price Prediction

On March 25, Bitcoin had an upbeat start to the trading session, pushing back from the previous day’s decline. However, just after 01:15 UTC, a death cross developed that initiated selling pressure and resistance that forced BTC below a downtrend channel. Fortunately, buying pressure quickly returned at 03:30 UTC after the RSI signalled an oversold market and the price quickly rallied. By 08:00 UTC, a golden cross developed that put the bulls back in charge, and shortly after the MACD support increased following a price increase. Overall, BTC finally made some resistance and support levels at $88,250 and $86,600, respectively.

Chart 1, Analyzed by Alokkp0608 published on March 26, 2025.

As the day went on, Bitcoin continued to push towards the resistance level, albeit with some losses along the way. The 10:20 UTC and 13:35 UTC death crosses paused the bullish action temporarily; however, it did not reverse the uptrend. The fear of the momentary sell-side hiccup could not be prolonged, as bullish pressure kept BTC moving in an upward direction. Finally, at 19:05 UTC, yet another golden cross provided the push needed to puncture the resistance zone temporarily.

The rally was brief, though. Prices slid back into a downtrend channel at around 20:35 UTC, as a death cross re-emerged on the MACD, triggering additional sales. Prices found support at $87,215 and began to stabilize. In the early hours of March 26, BTC began to retest the level of resistance again. At 04:05 UTC, a golden cross led to another rally attempt toward $88,250, but an attempt at a breakout at 07:50 UTC failed, and the price became stagnant once more around the zone of resistance.

BTC’s Institutional Legitimacy Fuels Growing Confidence

The establishment of the U.S. Strategic Bitcoin Reserve represents a watershed moment for Bitcoin and shifts Bitcoin from a speculative asset to a legitimate financial hedge. Government backing has alleviated the last existential risk for BTC, further instilling confidence among institutions. Meanwhile, companies such as Bitwise are seeing increasing allocations from their clients, as confidence leads to meaningful price action.

Even with slightly higher pullbacks after large pushes, Bitcoin appears to have built up support on the way up, with golden crosses charging the bull moves recently. As BTC continues to challenge key resistance around $88,250, the expansion of BTC institutional adoption, combined with a less uncertain regulatory environment, may drive a more constructed and durable market. Bitcoin appears more attractive as a long-term investment. The BTC price prediction indicates that traders should monitor confirmation from signals like MACD and RSI to ascertain the subsequent course of action.