FameEX Morning Crypto News Recap | March 7, 2025

Trump Creates Bitcoin War Reserve but Stops Further Purchases

Trump's executive order introduces a crypto strategic reserve and an inventory. The reserve only potentially includes Bitcoin. The inventory covers broader crypto assets. The U.S. government plans to explore Bitcoin purchases for the reserve only if funding is available.

U.S. Senator Suggests Potential for Future Bitcoin Strategic Reserve Policies

Senator Cynthia Lummis says Trump's executive order is just a starting point, signaling further policies to integrate Bitcoin more deeply into U.S. financial systems and strengthen America's crypto economic leadership.

University of Surrey Professor Warns Adding Altcoins to National Reserves Is a “Double-Edged Sword”

Professor Yu Xiong of the University of Surrey warns that adding altcoins to national reserves is a “double-edged sword.” While offering benefits, risks include regulatory uncertainty, liquidity challenges, and insufficient market depth for large-scale reserves.

Analysts Doubt White House Crypto Summit Will Boost Bitcoin Prices

Alex Tapscott of Ninepoint Partners believes the market will gradually dismiss Trump’s statement. He suggests Trump should prioritize creating a policy framework to support the growth of the U.S. crypto industry.

Crypto Market Cap Drops 21%, Analysts Predict New High in Q2 2025

The crypto market hit a record $3.73T on Dec 14, 2024, before dropping 21% to $2.91T. Analyst Mark Quant predicts rising Global Liquidity Index (GLI) could drive it past $4T in Q2 2025. GLI, with a 0.77 correlation, typically precedes crypto bull markets.

European Central Bank Lowers Rates for Fifth Straight Meeting, Cuts Deposit Facility Rate to 2.5%

The European Central Bank reduced the deposit facility rate by 25 basis points to 2.5%, marking its fifth straight rate cut. The main refinancing rate fell from 2.90% to 2.65%, and the marginal lending rate declined from 3.15% to 2.9%.

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