HashWhale BTC Mining Weekly | New Tariff Policy Impacts Bitcoin Market, Miners' Profit Margins Squeezed (3.29-4.04)

Author: Monkey | Editor: Monkey

1. Bitcoin Market

From March 29 to April 4, 2025, the specific trends of Bitcoin are as follows:

March 29: After experiencing a decline on the previous trading day, Bitcoin stabilized around $83,840, briefly rebounding to $84,543. However, the rebound was limited, and it subsequently entered a new round of decline, breaking below the $84,000 support level, fluctuating down to $82,014, and after a slight rebound, continued to decline, reaching a low of $81,878.

March 30: Bitcoin showed signs of stabilization, with the $82,000 support level temporarily effective, halting the downward trend and entering a phase of oscillating upward. The price rose to $83,478 but then fell back to $82,270.

March 31: Bitcoin officially broke below the key support level of $82,000. After opening, it maintained a downward oscillation, dropping to $81,491 in the early morning. The market saw intense back-and-forth trading, and after further decline to $81,459 in the evening, it stopped falling and initiated a rebound, showing a pattern of oscillating upward, quickly rising to $83,633 by noon.

April 1: Bitcoin's price briefly consolidated around $83,470 but weakened again after failing to stabilize effectively, falling back to $82,314. It then began a new round of upward movement, breaking through previous highs, reaching a maximum of $85,291. During this period, it briefly plummeted to $82,692 but quickly recovered, successfully breaking through the $85,000 mark.

April 2: The price maintained consolidation near $85,000 for a while, then oscillated down to $83,989. After a short-term correction, it quickly surged, breaking through the $86,000, $87,000, and $88,000 levels, demonstrating strong bullish momentum.

April 3: Bitcoin continued its upward trend, reaching a high of $88,377 during the day, but then experienced a sharp correction, quickly falling to a low of $82,529, forming a cliff-like drop. Although it rebounded to around $83,600, selling pressure remained, and the price fell below $82,000 again, further probing down to $81,532.

April 4: Bitcoin stopped falling and stabilized, with prices gradually rising. As of the time of writing, Bitcoin was reported at $82,902, showing initial signs of short-term stabilization in the market.

Summary

This week, Bitcoin's overall trend exhibited a typical oscillating structure of "decline --- rebound --- further decline." At the beginning of the week, Bitcoin fell stepwise from the $87,000 range to $82,000, forming a short-term weak pattern; in the mid-term, the price oscillated between $82,000 and $84,000; in the latter part of the week, volatility significantly increased. Although it briefly broke through $88,000 to set a new high for the phase, the market's risk aversion sentiment intensified due to former U.S. President Trump's announcement of a new round of tariff policies, leading to a rapid and significant price correction, forming a "cliff-like" drop. The current price stabilized around $82,900, with short-term market sentiment appearing cautious. Future trends need to pay attention to macro policy changes and the effectiveness of key support levels.

Bitcoin Price Trends (2025/03/29-2025/04/04)

2. Market Dynamics and Macroeconomic Background

Capital Flow

1. Exchange Capital Flow

Bitcoin Spot ETF Capital Flow (data from Farside Investors):

March 31: Total net outflow from Bitcoin spot ETFs was approximately $60.6 million.

April 1: Net outflow expanded to $157.8 million.

April 2: Market sentiment warmed, with a net inflow of approximately $334 million.

Exchange Bitcoin Supply:

As of April 1, the supply of Bitcoin held by exchanges had dropped to 7.53% of the total supply, the lowest level since February 2018, reflecting reduced selling pressure and increased confidence among long-term holders.

2. Institutional Investor Movements

GameStop: On March 25, GameStop announced plans to raise $1.3 billion through debt financing to purchase Bitcoin, aiming to use it as a financial reserve asset to combat inflation and align with technological and monetary trends. However, this move raised market skepticism, leading to a decline in its stock price of over 13%.

MicroStrategy: As of March 30, MicroStrategy (now known as Strategy) increased its Bitcoin holdings to 528,185 coins, accounting for over 2% of the circulating Bitcoin supply. Nevertheless, Gus Gala, an analyst at Monness Crespi Hardt, downgraded its stock rating to "sell," pointing out potential challenges in future financing.

3. Whale Account Capital Movements

Unusual movements of long-term dormant Bitcoin:

On March 30, CryptoQuant analyst Maartunn reported that approximately 8,000 long-term dormant (5-7 years) Bitcoins underwent a large-scale transfer, with a total value of about $674 million. This transfer occurred within a single block, and the market generally believes it may bring selling pressure, leading to a bearish market sentiment. However, it could also be internal adjustments within whale accounts or the organization of cold wallets by institutional investors, not necessarily indicating direct selling.

Technical Indicator Analysis

Death Cross: Recently, the 50-day moving average (MA) crossed below the 200-day MA, forming a typical "death cross" sell signal. This usually indicates that the market may enter a downward trend.

Relative Strength Index (RSI): The current RSI value is approximately 72, close to the overbought area, which may indicate a risk of price correction in the short term.

Support and Resistance Levels: Key support levels are between $75,815 and $72,856; if the price breaks through the resistance level of $105,000, it may further test the target of $110,000.

Market Sentiment Analysis

1. Market Sentiment Indicator Analysis

Fear & Greed Index:
According to CoinMarketCap data, this week's Fear & Greed Index dropped from 27 on March 29 to 24 in the middle of the week, briefly rising to 29 on April 2, and then falling back to 24. This fluctuation reflects the ongoing instability of market sentiment, with the market initially shrouded in fear, influenced by uncertainty and price volatility, leading to insufficient investor confidence. The rebound on April 2 may be related to changes in capital flow and short-term buying interest, but due to the lack of clear upward momentum in the market, fear sentiment once again dominated, indicating that investors remain cautious overall and lack confidence in future trends.

2. Market Sentiment Summary

In the past week, Bitcoin's price experienced significant volatility, first dropping sharply to $82,000, then starting to rebound on April 1, and briefly touching $88,000 on April 3 before quickly falling back to around $82,500. Overall, market sentiment remains cautious and fearful. Although the early April rebound temporarily boosted confidence, the price failed to stabilize effectively, indicating insufficient bullish strength, while selling pressure in the market remains heavy. In this context, short-term traders tend to buy high and sell low, while long-term holders are in a wait-and-see mode, awaiting further clarification of market trends.

Macroeconomic Background

U.S. New Tariff Policy: On Wednesday (April 2), U.S. President Donald Trump announced new reciprocal tariff policies against multiple countries. The U.S. will impose a 10% comprehensive tariff on all imported goods and higher rates on other countries deemed to perform poorly in trade. Additionally, Trump stated that a 25% tariff would be imposed on foreign cars. This news caused Bitcoin's price to rapidly drop from nearly $88,000 to about $83,000. Cryptocurrency-related stocks also saw declines, with Strategy (formerly MicroStrategy) down about 7%, Coinbase Global down 6%, and Robinhood down 9%. The market is concerned that these tariffs may suppress economic growth and exacerbate inflation, thereby affecting investors' preferences for risk assets.

Cryptocurrency Options Expiry and Market Volatility: Reports indicate that over $14 billion in options contracts are set to expire on Friday, which may lead to increased volatility in the cryptocurrency market. Additionally, GDP data released on Thursday may also impact market sentiment and trading decisions.

Global Liquidity and Bitcoin Price Trends: According to a report from Merkle Tree Capital, the global M2 money supply has been rising since the end of 2024. The Federal Reserve announced that starting in April, it will reduce quantitative tightening (QT) from $25 billion per month to $5 billion. This increase in liquidity has historically been associated with a lag of about 10 weeks before supporting Bitcoin prices, which may provide support for Bitcoin prices in the coming months.

U.S. Economic Data and Market Expectations: This week, investors are focused on March employment data, new trade policies, corporate earnings reports, and the latest developments in manufacturing and services. In particular, Friday's employment report, Tuesday's job vacancy data, Wednesday's ADP private sector hiring report, and Thursday's weekly unemployment claims data will provide important clues about the health of the U.S. economy, potentially influencing investors' attitudes toward risk assets.

3. Hash Rate Changes

From March 29 to April 4, 2025, the Bitcoin network hash rate exhibited fluctuations, as detailed below:

On March 29, the Bitcoin network hash rate fell from 862.01 EH/s to 786.65 EH/s, then briefly rebounded to 848.43 EH/s but failed to maintain the upward momentum, dropping again to 769.28 EH/s, showing high volatility characteristics. On March 30, the hash rate initially rose to 857.02 EH/s but quickly fell back to 781.84 EH/s due to volatility. Although there were signs of recovery afterward, it again dipped to 730.04 EH/s and maintained a level below 750 EH/s for an extended period, indicating that some miners may have temporarily exited the network due to profit pressure. On March 31, the hash rate saw a significant increase, quickly rising to 848.00 EH/s, and after a brief pullback, surged again, reaching a high of 922.66 EH/s, indicating a recovery in miner activity. On April 1, the hash rate rapidly dropped to 822.27 EH/s and continued a downward trend, falling to a low of 759.35 EH/s, showing an overall weak correction pattern. On April 2, the hash rate rebounded strongly, rising to 905.68 EH/s, then slightly falling to 817.41 EH/s, but subsequently surged again, reaching a daily high of 997.51 EH/s, the peak for the week, before slightly adjusting to around 940 EH/s. On April 3, the hash rate fell to 824.77 EH/s, then further dipped to 802.10 EH/s, but gradually recovered in the latter half of the day, rebounding to 965.17 EH/s at the time of writing, showing signs of rapid recovery in computing power.

This week, Bitcoin's overall network hash rate exhibited a pattern of "oscillating decline --- rapid recovery --- severe volatility." In the first half of the week, the hash rate dipped below 750 EH/s, indicating that some miners temporarily left the network during the price adjustment period. As market sentiment warmed, computing power quickly recovered, approaching 1,000 EH/s in the latter half of the week, reflecting the network's high resilience and miners' rapid responsiveness.

Continued attention is needed on the impact of subsequent price fluctuations on small and medium-sized miners, as well as the upcoming difficulty adjustment rhythm's effect on hash rate stability.

Bitcoin Network Hash Rate Data

4. Mining Revenue

According to the latest model estimates from MacroMicro, as of April 2, 2025, the unit production cost of Bitcoin is approximately $88,427.27, while the spot price on that day is about $82,900, resulting in a Mining Cost-to-Price Ratio of 1.07. This ratio is significantly above 1, indicating that the current market price is below the average mining cost across the network, with the overall network operating below the breakeven point, and most miners are experiencing compressed profits or losses.

This phenomenon reflects that in the current market environment, miners' profit margins are significantly squeezed, especially for those with high electricity costs or using low-efficiency equipment, particularly small and medium-sized mining farms relying on the previous generation of ASIC miners, which may have entered marginal loss or even total loss territory. Historical data shows that when the cost-to-price ratio remains above 1, it usually leads to some inefficient computing power exiting the market, pushing the overall network hash rate down and triggering a downward adjustment in mining difficulty to rebalance operational costs and entry thresholds.

Additionally, it is noteworthy that an increase in the Mining Cost-to-Price Ratio often coincides with weak market sentiment or rapid price corrections, thus this indicator can also serve as a predictive signal for miners' survival pressure and a potential leading indicator for market bottoms, possessing certain forward-looking reference value.

According to Hashrate Index data, as of April 4, 2025, the Bitcoin hash price is $46.51 per PH/s per day, showing a slight rebound month-on-month, but overall still remains in a low range. The hash price, as a core indicator of miners' income per unit of computing power, is influenced by Bitcoin prices, mining difficulty, and block transaction fees. The recent decline in Bitcoin prices combined with an increase in difficulty has put pressure on hash price levels, further compressing miners' profitability.

If Bitcoin prices cannot achieve effective rebounds in the short term, while energy and maintenance costs remain high, it is possible that some regions will experience trends of computing power migration or centralization. Especially for miners with access to cheap electricity resources or deploying high-efficiency mining machines, their competitive advantages will be further strengthened, accelerating the market towards concentration among leading players.

Bitcoin Mining Cost Data

5. Energy Costs and Mining Efficiency

According to CloverPool data, as of the time of writing, the total computing power of the Bitcoin network has reached approximately 842.54 EH/s, with the current network mining difficulty at 113.76 T. Based on block interval estimates, the next round of difficulty adjustment is expected to occur in about one day, with the current estimated increase of approximately +4.57%, which may raise the difficulty to 118.95 T.

This round of difficulty increase means that the efficiency of mining Bitcoin per unit of computing power will further decline, specifically manifested as a reduction in output per unit of energy consumption (i.e., energy efficiency ratio decline), which for miners equates to a contraction in marginal returns. Against the backdrop of relatively pressured Bitcoin prices, this trend will exacerbate the profitability pressure on mining farms with high electricity prices and operating costs, especially for miners who have not timely deployed high-efficiency ASIC equipment, significantly increasing potential risks.

Based on current difficulty and computing power levels, the average block time on the network remains slightly below 10 minutes, which is also a direct factor driving further difficulty increases. Meanwhile, as major global mining regions gradually enter spring and summer, the end of the dry season in some areas may continue to release computing power resources in the short term, further raising the overall network difficulty level.

Additionally, it is noteworthy that if Bitcoin prices maintain at current levels (around $82,900) or continue to decline, while network difficulty continues to rise, it will directly lead to a continuous decline in hash price (mining revenue per EH/s per day), further compressing miners' unit energy consumption returns.

As Bitcoin approaches a significant halving cycle window (expected in mid-April 2025), the aforementioned trends will become more influential, and miners need to optimize their energy structure and equipment iteration strategies in advance to adapt to the upcoming dual challenges of "halving unit output + rising difficulty."

Bitcoin Mining Difficulty Data

6. Policy and Regulatory News

U.S. Bitcoin Legislation Accelerates ------ Multiple States Promote Self-Custody Rights and Government Investment

California Submits the "Bitcoin Rights Bill" ------ Establishes Self-Custody Rights, Limits Government Intervention

On March 29, 2024, the California legislature officially submitted the "Bitcoin Rights Bill" numbered AB-1052, aimed at safeguarding California residents' rights to self-custody Bitcoin and other digital assets, prohibiting the government from taxing or imposing restrictions on payments made with Bitcoin. The bill also establishes a legal framework for unclaimed digital assets and amends the 1974 Political Reform Act to clarify that public officials are prohibited from promoting or issuing digital assets. Supporters believe that if passed, this bill will serve as a reference model for national Bitcoin regulation.

Rhode Island Proposes Tax-Free Bitcoin Trading Policy ------ $10,000 Monthly Limit, Encouraging Business Adoption

On March 29, 2024, the Rhode Island Senate submitted Bill No. 0451, proposing to allow residents and businesses to conduct up to 10 Bitcoin transactions per month, with each transaction not exceeding $1,000, exempt from state capital gains tax. The bill emphasizes that this policy applies only to state taxes and does not affect federal tax obligations, while requiring complete preservation of transaction records for tax audits. Chris Perrotta, chair of the Rhode Island Blockchain Committee, stated that this initiative will lower barriers to Bitcoin trading and promote more businesses to accept Bitcoin payments, positioning the state favorably in the blockchain economy competition.

Texas Proposes Government Bitcoin Investment Bill ------ Plans to Establish a $250 Million BTC Reserve

On April 2, 2024, Democratic lawmakers in the Texas House submitted a new bill proposing that the state government invest up to $250 million in Bitcoin and allow cities and counties to invest an additional $10 million. The bill aims to incorporate Bitcoin into public fund allocations to enhance fiscal diversification and long-term return potential. If passed, Texas will become the first state in the U.S. to officially establish a Bitcoin government reserve, potentially sparking discussions in other states about Bitcoin as a strategic asset.

The Arizona House Committee Approves Bitcoin Reserve Bill ------ Enters Final Voting Stage

On April 3, 2024, the Arizona House Committee officially approved the Bitcoin Reserve Bill (SB 1025 and SB 1373). The bill has now entered the third reading process and will undergo final voting in the House. If successfully passed, it will be submitted for the governor's signature, making Arizona a significant promoter of Bitcoin financial strategy in the U.S.

Alabama and Minnesota Legislators Push for Bitcoin Reserves ------ Allowing the State to Invest in Bitcoin

On April 3, 2024, news emerged that legislators in Minnesota and Alabama have submitted companion bills similar to existing legislation, allowing states to purchase Bitcoin. On April 1, Minnesota Republican Representative Bernie Perryman submitted the "Minnesota Bitcoin Bill" (HF 2946) to the state House, following a similar bill proposed by Republican State Senator Jeremy Miller on March 17. Meanwhile, on the same day in Alabama, Republican Senator Will Barfoot proposed Senate Bill No. 283, while bipartisan representatives led by Republican Mike Shaw introduced the same House Bill No. 482, which allows the state to invest in cryptocurrencies but essentially limits it to Bitcoin.

Brazilian Official: Bitcoin Reserves "Crucial" for Brazil's Prosperity

On March 29, news from Decrypt reported that Pedro Giocondo Guerra, a senior advisor to the Brazilian Vice President, stated on behalf of the government in a recent speech: "Strategic reserves of Bitcoin are crucial for national prosperity. Discussions about establishing BTC reserves may be a key factor in determining Brazil's prosperity, aligning with national and public interests." Brazilian Congressman Eros Biondini (PL-MG) previously proposed legislation to establish a "Strategic Sovereign Bitcoin Reserve" (RESBit), holding 5% of foreign exchange reserves (international reserves) in Bitcoin, with the Brazilian central bank using advanced monitoring systems, blockchain technology, and artificial intelligence to oversee transactions and custody.

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Bitcoin Adoption in the EU Limited by "Fragmented" Regulatory Framework

On March 29, news emerged that while the U.S. is advancing landmark cryptocurrency regulations, attempting to establish Bitcoin as a national reserve asset, institutional adoption of Bitcoin in the EU remains slow. Since President Trump signed an executive order on March 7 to create a federal Bitcoin reserve using confiscated cryptocurrencies, European companies have largely remained silent on the matter.

According to Elisenda Fabrega, chief legal counsel at Brickken (a European real-world asset tokenization platform), this stagnation may stem from Europe's complex regulatory framework. She stated, "The adoption of Bitcoin by European companies remains constrained, and this hesitation reflects deeper structural divergences rooted in regulation, institutional signals, and market maturity. Europe has yet to take a clear stance on Bitcoin as a reserve asset."

7. Mining News

Galaxy Digital Plans to Scale Back Bitcoin Mining, Texas Data Center Shifts to AI-Related Business

On March 29, news emerged that Galaxy Digital plans to reduce its Bitcoin mining output in the coming quarters and transform its Texas data center into AI and high-performance computing (HPC) facilities. This transformation is based on a 15-year hosting agreement with CoreWeave.

Hut 8 Mining and Trump's Son Announce Formation of American Bitcoin Company

On March 31, news emerged that Hut 8 Mining and Eric Trump, the son of U.S. President Trump, announced the establishment of the American Bitcoin company, aiming to set new standards for Bitcoin mining. The American Data Centers, owned by Trump's sons, will merge with American Bitcoin and hold a 20% stake.

American Bitcoin is a mining business majority-owned by the publicly listed crypto mining company Hut 8. They plan to jointly create the world's largest digital currency mining enterprise and intend to establish their own "Bitcoin reserve."

JPMorgan: 14 Listed Bitcoin Mining Companies Saw 25% Drop in Market Value in March

On April 2, news from Decrypt reported that JPMorgan stated in a report on Tuesday that Bitcoin miners continue to face challenges, with 14 listed mining companies experiencing the worst month on record in March. The Bitcoin miners tracked by them, including MARA and Core Scientific, saw a total market value drop of 25% last month, amounting to approximately $6 billion. Additionally, the report indicated that companies with high-performance computing businesses "underperformed pure Bitcoin miners for the second consecutive month."

JPMorgan's data showed that these 14 listed mining companies also performed poorly in February, when their total market value also lost over 20%, approximately $6 billion.

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U.S. Senator Introduces FLARE Bill to Support Bitcoin Mining Industry Development

On April 2, news emerged that U.S. Senator Ted Cruz recently announced the introduction of the "FLARE Act" (Flaring Utilization Act), a federal proposal aimed at converting wasted energy into effective use through targeted tax reforms. The federal bill seeks to amend the 1986 Internal Revenue Code to allow for permanent full expensing of property used to capture natural gas that would otherwise be flared or vented and to use it for value-added products. Cruz described this initiative as a strategic step to leverage the state's abundant energy supply and strengthen its leadership in the digital asset space. The senator stated, "I am committed to making Texas the preferred place for Bitcoin mining. The FLARE Act incentivizes entrepreneurs and cryptocurrency miners to utilize natural gas that would otherwise be stranded."

8. Bitcoin News

Global Corporate and National Bitcoin Holdings (This Week's Statistics)

1. Fidelity Increases Bitcoin Holdings: On March 29, Fidelity purchased nearly $100 million worth of Bitcoin, bringing its Bitcoin ETF (FBTC) total holdings to $16.6 billion.

2. El Salvador Bitcoin Holdings Update: As of March 30, El Salvador held 6,131.1 Bitcoins (approximately $505 million). As of March 31, holdings increased to 6,132.18 Bitcoins (approximately $606 million).

3. Metaplanet Increases Bitcoin Holdings: On March 31, Metaplanet issued a zero-interest bond of 2 billion yen (approximately $13.38 million) to purchase Bitcoin. On April 1, Metaplanet bought 696 Bitcoins, increasing total holdings to 4,046 Bitcoins, with an average cost of approximately $86,300 per coin. On April 2, Metaplanet further increased its holdings by 160 Bitcoins, bringing total holdings to 4,206 Bitcoins, with an average holding cost of approximately $86,300 per coin.

4. Japanese Game Developer enish to Purchase Bitcoin: On April 2, according to an official announcement, the publicly listed Japanese game developer enish announced plans to incorporate Bitcoin into its financial strategy, intending to purchase Bitcoin worth 100 million yen (approximately $670,000) between April 1 and April 4. The company positions Bitcoin purchases as an important component of its overall financial strategy.

BlackRock CEO Commits to Unlocking Private Investment Opportunities for the Public, Suggests Dollar May Be Replaced by Bitcoin and Other Assets

On March 31, news emerged that Larry Fink, CEO of BlackRock, committed to opening private markets to millions of everyday investors, not just a select few wealthy individuals, and believes that individuals should share more in the economic growth. He stated that capitalism in recent years "has only served a few," leading to anxiety spreading across the entire economic landscape. He noted that economic unease is more severe than "at any recent time," and expanding investment channels will help alleviate concerns.

In his annual letter to investors on Monday, Larry Fink also mentioned that the U.S. dollar's status as the global reserve currency "is not guaranteed to last forever," warning that nations need to control their debt. He also suggested that the dollar could lose its status and be replaced by digital assets like Bitcoin.

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Survey: 25% of Hong Kong Respondents Wish to Hold Virtual Assets, Bitcoin Most Popular

On April 1, news emerged that a public opinion survey conducted by the Hong Kong University of Science and Technology's Business School regarding virtual assets and tokenized currencies showed that approximately 25% of respondents expressed a desire to hold virtual assets in the future, an increase of 6 percentage points compared to mid-September 2023, following a suspected fraud incident involving a cryptocurrency platform. The survey results indicated that 81% of respondents are interested in holding Bitcoin, an increase of 7 percentage points from the initial survey, while interest in non-fungible tokens (NFTs) has weakened, decreasing by 11 percentage points from the initial survey, reflecting a shift in investor preference from speculative digital collectibles to other areas.

Arthur Hayes: Still Believes Bitcoin Can Reach $250,000 by Year-End

On April 1, news emerged that BitMEX co-founder Arthur Hayes stated in a recent blog post: "Bitcoin value = technology + fiat liquidity. This technology is effective and will not undergo any major changes in the near future, whether good or bad. Therefore, Bitcoin trading is entirely based on the market's expectations of future fiat currency supply. If my analysis of the Fed's major shift from QT to QE is correct, then Bitcoin hit a local low of $76,500 last month, and now we are starting to move towards $250,000 by year-end. Of course, this is not an exact science, but if I had to bet on whether Bitcoin would hit $76,500 or $110,000 first, I would bet on the latter. Even if the U.S. stock market continues to decline due to tariffs, earnings expectations collapsing, or reduced foreign demand, I still believe the probability of Bitcoin continuing to rise is greater. Recognizing the pros and cons, Maelstrom is cautiously deploying capital. We do not use leverage and make small purchases relative to the size of our total investment portfolio. We have been buying Bitcoin and altcoins at all levels between $90,000 and $76,500. The speed of capital deployment will accelerate or slow down based on the accuracy of my predictions. I still believe Bitcoin can reach $250,000 by year-end."

Fidelity Research: Bitcoin Preparing to Enter Next "Acceleration Phase"

On April 1, news emerged that research from Fidelity Digital Assets indicates that the Bitcoin bull market is not over, as the "acceleration phase" has not yet peaked. A report from Fidelity Digital Assets questions whether Bitcoin prices have already experienced a cyclical "peak" or if Bitcoin is on the verge of another "acceleration phase."

According to Fidelity analyst Zack Wainwright, the acceleration phase of Bitcoin is characterized by "high volatility and high returns," similar to the price movements when Bitcoin broke through $20,000 in December 2020. Despite Bitcoin's year-to-date return being a loss of 11.44% and the asset being down nearly 25% from its historical high, Wainwright stated that the recent performance following the "acceleration phase" is consistent with Bitcoin's average retracement compared to previous market cycles.

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Eric Trump: Bitcoin is One of the Greatest Store of Value Instruments

On April 2, news emerged that Eric Trump stated: "Bitcoin is one of the greatest store of value instruments, highly liquid, and an excellent hedge against real estate."

Fidelity Research Analyst: Bitcoin May Enter Acceleration Phase, Base Price Could Stabilize Around $110,000

On April 3, news from Bitcoin.com reported that Fidelity Digital Assets research analyst Zack Wainwright stated that Bitcoin may currently be in an acceleration phase, exhibiting high volatility and profit characteristics, similar to price breakthroughs in 2013 and 2017. He noted that Bitcoin prices rose 56% after elections, and if it enters a second rebound, the base price could stabilize around $110,000, with expectations of reaching a peak in the coming months.