FameEX Morning Crypto News Recap | March 7, 2025

Trump Establishes Bitcoin War Reserve but Pauses Additional Acquisitions

Trump's executive order establishes two components: a crypto strategic reserve exclusively for Bitcoin and a broader digital asset inventory including non-Bitcoin assets. The key distinction is that the government will not actively acquire inventory assets but may explore budget-neutral Bitcoin purchases for the reserve if feasible.

U.S. Senator Hints at Possible Future Bitcoin Strategic Reserve Initiatives

Senator Cynthia Lummis says Trump's executive order marks just the beginning, indicating upcoming policies to further integrate Bitcoin into U.S. financial systems and boost America's leadership in cryptocurrency economics.

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

Professor Yu Xiong of the University of Surrey cautions that including altcoins in national reserves is a “double-edged sword.” While they offer potential benefits, risks such as regulatory uncertainty, liquidity issues, and limited market depth pose significant challenges for large-scale adoption.

Analysts Skeptical That White House Crypto Summit Will Lift Bitcoin Prices

Alex Tapscott of Ninepoint Partners expects the market to gradually overlook Trump’s statement. He advises Trump to focus on establishing a policy framework that fosters the growth and development of the U.S. crypto industry.

Crypto Market Cap Sheds 21%, Analysts Foresee a New High in Q2 2025

The crypto market peaked at $3.73T on Dec 14, 2024, before falling 21% to $2.91T. Analyst Mark Quant expects a rising Global Liquidity Index (GLI) to push it past $4T in Q2 2025. With a 0.77 correlation, GLI often signals upcoming crypto bull markets.

European Central Bank Cuts Rates for Fifth Consecutive Time, Lowers Deposit Facility Rate to 2.5%

The European Central Bank cut its deposit facility rate by 25 basis points to 2.5%, its fifth consecutive rate reduction. The main refinancing rate dropped to 2.65%, and the marginal lending rate fell to 2.9%.

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