Swiss National Bank Shocks Crypto World: Bitcoin Reserves Rejected! How This Could Slash Bitcoin Prices by 30% Overnight

The Swiss National Bank has declined to hold Bitcoin as a reserve asset. This decision comes as a growing debate about crypto regulations. Many supporters believed Bitcoin could strengthen Switzerland’s financial system. However, the SNB stated it does not meet their current criteria. This move has aroused dispute in the financial world. According to analysts, central banks continue to be concerned about Bitcoin’s volatility.  While some believe it’s only a matter of time before more banks consider it. Investors are now closely monitoring the Bitcoin price prediction.

Swiss National Bank’s Stance on BTC

Switzerland’s government had proposed adding Bitcoin to the Swiss National Bank reserves. The central bank reviewed the proposal but ultimately decided against it. The SNB cited BTC’s fluctuation in its current financial policy. This decision aligns with their cautious approach toward crypto regulations. Officials stated that the Swiss franc remains stable, making Bitcoin reserves unnecessary.

The decision has divided opinions. Some financial experts see it as a missed opportunity for Switzerland to lead in digital finance. Others believe the SNB is right to wait for more stability in the crypto market. The rejection could influence how other central banks approach digital assets.

Bitcoin’s price showed minor fluctuations following the announcement. Analysts now expect increased market speculation. Some believe the rejection confirms Bitcoin’s volatility, while others argue it strengthens the case for decentralized finance. The latest Bitcoin price prediction suggests short-term uncertainty but long-term growth potential. As global interest in digital assets grows, the Swiss National Bank may reconsider its stance. For now, Switzerland’s central bank remains cautious about adding Bitcoin to its financial system.

BTC’s Battle: Bullish Breakout or Bearish Reversal at $84K?

The trading day of March 20th began with bullish momentum as Bitcoin tested resistance at $87,453.89 at midnight. However, a bearish death cross on the MACD at 00:20 UTC triggered a downward trend. Another death cross at 9:20 UTC intensified selling pressure, driving Bitcoin lower. The price found temporary support at $84,760.89 after an oversold signal at 10:15 UTC, but bearish sentiment remained strong, leading to a breakdown at 15:55 UTC. Bitcoin established new support at $83,655.44 before bullish buyers stepped in. 

Chart 1, Analyzed by ShwetaCW, published on TradingView, March 21, 2025

The trading day of March 21 started with a golden cross at 17:05 UTC, which fueled the upward trend. The price attempted to break above $84,760.89, but an overbought RSI reading of 70.47 at 1:55 UTC signaled bullish exhaustion, triggering a pullback. A bearish death cross at 5:00 UTC pushed prices lower again. However, a golden cross on the MACD at 8:45 UTC hinted at bullish recovery potential. According to the Bitcoin price prediction, if bullish momentum holds, a breakout above $84,760.89 is possible. Conversely, bearish pressure could force Bitcoin below $83,655.44.

SNB’s Decision Impact on Bitcoin 

The Swiss National Bank rejecting Bitcoin as a reserve asset highlights its cautious stance on digital currencies. This decision reinforces traditional banking priorities over crypto adoption. The move may slow institutional interest in Bitcoin, influencing market sentiment. Stricter crypto regulations could follow, affecting investor strategies. Bitcoin reacted with minor price fluctuations, reflecting uncertainty. Analysts remain divided on long-term implications. According to the latest Bitcoin price prediction, short-term volatility is expected, but long-term growth remains possible. As global interest in digital assets grows, central bank policies such as SNBs will play an important role in molding the crypto market’s future.