Bitcoin Daily Commentary - 21 March 2025
Bitcoin's price is down 3.1% over the past 24 hours, trading at $84,000 after failing to hold the key $85,000 level overnight. Meanwhile Bitcoin's dominance has fallen to 60.5%, from 60.6% yesterday.
Sentiment has improved significantly with the Bitcoin Fear & Greed Index rising to 49 and moving into Neutral territory.
US President Donald Trump made a video appearance at the Digital Asset Summit in New York. Prior to the video statement, rumours circulated on X, suggesting President Trump would announce zero capital gains taxes on certain cryptocurrencies or issue a favourable statement about the US strategic Bitcoin reserve. However, neither rumour proved to be true, and Trump simply doubled down on his promise not to sell Bitcoin that has been confiscated by the government, and he called for Congress to enact clear stablecoin legislation as soon as possible. As is commonplace for crypto markets, traders clearly bought into the rumour that Trump would make some sort of pro-Bitcoin executive order statements, and once this was clearly not the case, they sold on the news.
Lastly, the Bitcoin Coinbase premium index has reached its highest level since February 20. The Coinbase premium index measures the price difference between Coinbase and Binance prices for BTC pairs, where a higher value signals US investors dictating stronger buying pressure. While the index gauges US retail interest it may also signal strong accumulation from US institutions and whales.
