BitMEX Weekly Cryptocurrency Summary

Trading Volume Explodes on BitMEX

BitMEX reported an impressive 7-day trading volume of $5.93 billion , with Bitcoin (BTC) emerging as the most traded token. The increase underscores the platform’s growing popularity among traders, especially during a volatile week. The top three traders of the week saw outstanding returns:

• mu***er on ETHUSD: +$2,313,555

• no***ia on BTCUSD: +$1,406,820

• BTCUSD bullish : +$653,914

This highlights the appeal of BitMEX, especially with its ongoing 2024 Welcome Offer , which gives new users the opportunity to earn up to $5,000 in BMEX tokens within 30 days by depositing and trading a specific amount (e.g. $50 for depositing $200 and trading $50k, up to $5,000 for depositing $10,000 and trading $25 million). This offer is only available to new users or those who have been inactive for 360 days, excluding corporate or affiliate accounts with commissions above 30%.

Market Summary: US Stocks and Cryptocurrencies Plunge

US stocks faced another challenging week, with a quick recovery followed by a sell-off to previous lows. The cryptocurrency market, much like the performance of stocks, is on the brink of a breakdown. The much-anticipated announcement of the US Strategic Bitcoin Reserve, signed by President Trump, disappointed. Instead of buying more Bitcoin, the government will simply maintain the seized assets—about 200,000 BTC (worth more than $17 billion)—under a budget-neutral mandate that avoids new spending or deficits.

Top performers and bottom performers

Some cryptocurrencies shine brightly, while others struggle:

Top Growth Projects :

Cardano (ADA) : Up 39.6%, boosted by its strategic role in the US Crypto Reserve and a major protocol upgrade that attracts institutional interest.

XRP : Up 19.6%, boosted by inclusion in the US Crypto Reserve and growing optimism for cross-border payments, although some critics question its longevity.

Chainlink (LINK) : Gained 16.1%, cementing its position as the industry's leading data oracle, outperforming competitors like PYTH, which faced downtime and poor user experience.

Poorly performing projects :

Litecoin (LTC) : Down 18.9% after LTC ETF-fueled rally fails to materialize.

Hype : Lost 17.6% as over-hyped expectations of its EVM promise evaporated, leading to a sell-off among traders.

Worldcoin (WLD) : Down 14.5% on concerns over large token unlocks, adding to dilution concerns and selling pressure.

Macroeconomic news and projects

Macro Highlights

• ETF Inflows : Ethereum (ETH) ETFs saw weekly outflows of $60.8 million, while Bitcoin (BTC) ETFs recorded outflows of $279.3 million, signaling waning institutional interest.

• Trump's policies : In addition to Bitcoin Reserve, Trump has delayed tariffs on Canada and Mexico under a trade agreement and said tariffs would strengthen the United States, despite downplaying the stock market's focus. China targets growth of about 5% by 2025 with stimulus measures amid trade concerns. US Senate Banking Committee chairman introduces disbursement bill after crypto uproar, while Texas leads states in investing public funds in crypto.

Project Update

Some projects that have attracted attention:

• ADA, SOL, XRP : Under Review by US Crypto Reserve, Sending Their Prices Skyrocketing.

• Solana (CN) : Arguing for a significant reduction in SOL inflation, while Lombard Finance launches Liquidity Staking Bitcoin Token (LBTC) on Sui.

• Link Chain (LINK) : Strengthens oracle dominance, supports DeFi and smart contracts.

• Other Projects : Sam Altman’s World Network Unveils New Chat Feature; SUI Soars as Trump’s Crypto Venture Adds Solana Rival; Kava Unveils Largest Decentralized AI Model; Aave’s Token Soars Following Acquisition Proposal; and SBF’s Amnesty Tour Continues with Appearance on Tucker Carlson’s Podcast

Trading Alpha: Analyzing Trump's Bitcoin Reserves

Trump’s executive order establishing the Strategic Bitcoin Reserve initially seemed optimistic, legitimizing BTC as a U.S. reserve asset. However, its budget-neutral approach — relying on seized assets, potential gold sales, or asset reallocation without new spending — disappointed traders, triggering a classic “buy the rumor, sell the news” scenario. Bitcoin fell 6% following the announcement as expectations of new government purchases evaporated.

Market Reaction: Hype Meets Reality

Before the order, crypto traders had high hopes for direct government purchases of Bitcoin, fueling a rally since Trump’s inauguration. But after the order was revealed, prices reversed sharply, with Bitcoin falling about 6% within hours. Traders realized that no new money would be added to the reserves, only seized or existing assets, leaving those anticipating a major purchase disappointed.

Budget Neutrality: What It Really Means

The budget neutrality mandate limits the government’s ability to increase its BTC holdings through new spending. Key avenues include:

• Confiscation : Using ~200,000 BTC from criminal/civil asset forfeiture, albeit unpredictable and volatile.

• Asset Swap – Selling Gold : Selling a portion of the US gold reserves to fund Bitcoin, risks destabilizing the gold market.

• Reallocation of Assets/Tax Revenue : Not yet confirmed, limited immediate impact.

• Bitcoin Mining : Too limited due to competition for supply and Bitcoin's limited mining.

This confirms Bitcoin's strategic role but limits short-term price appreciation.

This “buy the rumor, sell the news” model is not new:

• Ethereum Consolidation (2022): Pre-upgrade boost, 10% discount after implementation.

• Bitcoin Adoption in El Salvador (2021): Spike Before Adoption, Drop After Announcement.

• CME Bitcoin Futures Launch (2017): Hit Highs Before Launch, Corrected Soon After.

Trump's order follows this scenario, with traders selling after expectations were not met.

Trading Meaning: Short Term Caution, Long Term Opportunity

• Short-term : Bearish reaction as traders unwind positions. Consider selling cautiously or hedging on weak rallies, watch $80,000 support.

• Long Term : Bitcoin being recognized as a reserve asset signals institutional confidence and potential adoption. Hold long, buy when price drops below $90,000 for upside.

• Balanced approach : Expect volatile trading; stay agile, watch for gold swaps or policy changes.

Final Step: Sell the News but Hold the Bullish Thesis

Trump’s Bitcoin Reserve Order Is a Short-Term Disappointment but a Long-Term Bullish Signal. The “sell the news” reaction pushed BTC lower, but its recognition as a national reserve asset could make it a cornerstone of the US reserve. Short-term traders should be cautious, while long-term holders should accumulate on dips, believing in Bitcoin’s strategic role.

The week of March 1-7, 2025 was a big one for crypto on BitMEX, marked by $5.93 billion in trading volume, market volatility, and mixed reactions to Trump’s Bitcoin Reserve. Whether you’re a trader in the “Whale Wars” or an investor eyeing the bullish trend in ADA, XRP, and LINK, stay informed. Don’t miss out on BitMEX’s 2024 Welcome Offer — sign up now to earn up to $5,000 in BMEX Tokens and participate in this dynamic market!