Bitcoin has proven more volatile than usual this week, seeing major price changes once again. As macroeconomic reports loom, the markets will naturally go into a state of trepidation. But could it be a great time for short-term gains?
This week has seen even further volatility in the price of Bitcoin. However, this has attracted more short-term traders with the promise of bigger gains, further increasing volatility. This was due to continuing confusion over the possibility of a strategic Bitcoin reserve.
Bitcoins Current Price
While the reserve was signed into being on Friday, and while some of the questions around it were cleared up, it also disappointed many. This was due to the fund being stocked with Bitcoin that will be from seized assets, either gained in criminal or forfeiture cases. With the US signaling it has no plan to buy Bitcoin, the price tumbled.
However, this is a market knee-jerk reaction. There are plenty more signals that show Bitcoin is still a viable long-term investment option. The current Bitcoin price is at $78,893. While down slightly, it is a great time for short-term gains. This was also mirrored in other small falls in altcoin prices, including Ethereum and XRP falling by around 7.5%, but then managing to trade back into the green by Monday afternoon.
The Strategic Reserve
The concept of a strategic reserve was discussed before the new government arrived. On taking office, it was notoriously silent on the topic, deeming it one matter that would be looked into later. This sent the previous flurry of activity in the crypto markets, which had resulted in Bitcoin’s highest price ever of $103,332.30, back into a spiral. At the end of February, Bitcoin had a very poor year with anyone who bought it in 2025 facing a loss. However, that was about to change.
The weekend starting March saw the idea raised again, and this sent the price skyrocketing again. In a cryptic tweet, detractors were out in force to bring the price down again. This slowly rose before the crypto summit on Friday 7th. There have been few periods in history where the price has been this volatile, and many long-term investors will be waiting for it to stabilize.
There were questions about how a strategic reserve would function. Usually, these are used to stock items and goods for use in times of emergency. The US has strategic oil and medical supply reserves for example. However, they do also have gold and foreign currency reserves, which it was expected Bitcoin would function like. It would opt as a way to diversify financial stores and work as a hedge against inflation.
Spanish Bank Provides Crypto Options
Regardless of how disappointed investors are in the outcome, it does show even more institutional investment in Bitcoin and cryptocurrencies in general. While the strategic reserve overshadowed other goings on in the world, smaller bits of news also hinted towards this.
BBVA is a Spanish bank, and on Monday 10th it announced that it had received the go-ahead from the securities regulator to offer Bitcoin and Ether trading services in the country. It is set to pioneer a service in which its customers can buy, sell, and handle transactions using Bitcoin and Ether on its app. This will place it alongside their general banking and finances, investments, and accounts.
The plan is that it will be available to a small number of select customers to begin with. This will gradually be rolled out to all its customers over the coming months. However, it is similar to schemes that have recently been used in Switzerland, which introduced this in 2021, and Turkey, in 2023. This is further proof of even more institutional investment.
Other Factors to Watch
There are plenty of other factors that will be occurring over the next month which will signal the path Bitcoin may take, in the short and long term. Most notably are several macroeconomic releases in the US. This involves the Consumer Price Index and the Producer Price Index. The general consensus is that inflation will have hit these hard, with rate cut expectations from the FED dwindling. Forecasts for economic growth are also falling, with many being cautious over a possible return to a bear market.
It is also worth noting that Bitcoin is still up 20% on the same time a year ago, despite increased caution and volatility. This is backed up by the positive signal that Bitcoin whales are buying. 5,000 BTC has been acquired by large wallet investors since March 3rd. Further buying by whales could see a bullish reversal on the cards extremely soon.
It remains to be seen how the next month will pan out regarding the price of Bitcoin. However, it is unlikely it is going to get much lower. Long-term investors may not get a better time to buy with so much institutional adoption on the horizon across the globe. Short-term investors, as always, run a risk, but could gain a lot from buying now.
