Bitcoin Plummets 7000 After US Reserve Announcement, AI Predicts 16% Gain by 2025
1min read Bitcoin (BTC) experienced a significant drop following the signing of an executive order by the U.S. President, which established a Strategic Bitcoin Reserve. This move was anticipated to trigger a bullish reaction but instead resulted in a 'sell the news' event, with Bitcoin plummeting from $92,000 to below $85,000 before stabilizing around $88,000. The cryptocurrency had previously rebounded from $83,000 to $92,000 ahead of the White House Crypto Summit. However, the lack of a clear buying strategy in the order, which relied on seized Bitcoin assets, failed to immediately impact the market positively.
Some analysts view this development as a potential catalyst for other nations to follow suit, further legitimizing Bitcoin. Concurrently, fresh U.S. job data added to market speculation, with nonfarm payrolls increasing by 151,000 for the month, aligning with expectations, while unemployment edged up to 4.1%. This data fueled optimism over potential rate cuts by the Federal Reserve.
As Bitcoin hovers around its current level, an AI-powered prediction tool has provided an updated outlook for its trajectory leading up to March 31, 2025. Based on technical indicators and market trends, the model forecasts an average BTC price of $102,938, reflecting a 16.34% gain from its price at the time of prediction of $87,139. Despite the overall bullish projection, AI models show a range of potential outcomes. The most optimistic forecast anticipates a 21.22% surge, placing BTC around $107,217 by early March. Meanwhile, a more cautious outlook forecasts a 12.46% increase, translating to a price of $99,484.
Despite lingering mixed sentiment, the broader trend remains bullish. According to an analysis, Bitcoin is expected to consolidate sideways throughout March, attempting to establish a firm bottom before making a decisive move. Historical price trends suggest that a potential breakout could unfold within a month. However, analysts note that Bitcoin is currently in a pullback phase, with liquidity constraints preventing a breakout. Short-term rallies may face resistance, and a sustained uptrend is unlikely until Bitcoin enters a new accumulation phase 
Ask Aime: Will Bitcoin recover after the'sell the news' event?
