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Bitcoin lifts following Trump’s “great progress” comments, may break 5-month losing streak

“Under the surface, the market is not broken, though it is still thin.”

Bitcoin saw a small bump on Monday morning, rising along with the broader market, following President Trump’s comments that “great progress has been made” in discussion with Iran, while also posting that if no deal is reached about reopening the Strait of Hormuz, the US would “completely obliterate” Iran’s energy infrastructure and Kharg Island.

Bitcoin crossed $68,000 early Monday morning and is up 1% in March. With one day to go, it could now close the month in the green, breaking its five-month losing streak, CoinGlass data shows.   

Still, the overall sentiment is cautious, as macro and geopolitical factors remain key drivers of bitcoin’s price, at least in the short term.

Sidrah Fariq, global head of retail at Deribit, told Sherwood News that markets remain uncertain amid mixed signals from the Trump administration regarding the situation in Iran. In turn, she said, investor reaction has been cautious and fragmented.

“BTC is still awaiting a clear catalyst to break through the 80K level. On Deribit, put premium continues to trade richer than calls across tenors, reflecting persistent demand for downside protection. Dealer gamma remains positive in the 65K-70K range, suggesting dealers are likely to buy dips and sell rallies, keeping price action relatively range-bound,” Fariq said, adding that markets will remain choppy in the $65,000 to $74,000 range. If we get to a ceasefire, bitcoin could rip higher.

For now, though, bitcoin is marching to the beat of the news and is stuck in the tight range it’s been trading in for weeks, with no extreme movement in either direction.

Danny Nelson, a research analyst at Bitwise, told Sherwood that while bitcoin has performed well since the start of the conflict (up nearly 1%, while the S&P 500 is down over 6%), its intraday price moves with the news.

Nelson said that when Trump threatened to bomb Iranian power plants on March 21, bitcoin immediately fell 2.6% — and when he walked back the threat on March 23, it jumped 4%.

“If this war escalates and shipping through not only Hormuz but also the Suez Canal (which Iranian-backed Houthis can threaten) halts, it could trigger a recession. This worst-case scenario dampens the market for risk-on assets, like bitcoin. It makes establishing a base above $70K much harder. This dynamic will weigh on bitcoin until the war recedes,” Nelson said.

Stephen Wundke, strategy and revenue director at Algoz, agreed, telling Sherwood that given the global uncertainty around the Iran war and the effects of oil and gas shortages, it is impossible to see big gains for BTC.

“Currently, the macro conditions make that very difficult. On the positive side, BTC retested recent lows and found a way to bounce. However, trading volumes are so thin that moves may be slightly more exaggerated than normal,” Wundke said. 

Meanwhile, bitcoin ETFs registered their first weekly outflow since the war began, with a $296.1 million exodus last week, according to SoSoValue.

“That matters because ETF demand had been carrying part of the recovery narrative. A reversal here shifts the burden back onto spot demand and short-covering,” Timothy Misir, head of research at Blockhead Research Network, said. Misir added that one week of outflows does not define a trend.

“Two or three would. For now, bitcoin still has room to rebound if macro stress eases, but the market needs stronger spot demand to turn a tactical bounce into a durable recovery,” he said.

At the same time, bitcoin ETFs are also set to close the month with $1.1 billion in inflows, their first monthly inflow since October 2025. While this volume is a far cry from the bombastic $3 billion to $6 billion monthly inflows of the past, it does reflect renewed (yet subdued) institutional interest.

As Misir put it, the crypto tape is telling a cautious story and “macro is still in command.”

“Under the surface, the market is not broken, though it is still thin. Bitcoin sits at the lower bound of the $60K–$70K new-buyer cost basis range, where supply accumulation is visible but still lighter than the stronger bases seen before prior durable recoveries. That makes the setup constructive in shape, not yet in depth,” Misir said.

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Altcoins have given back the majority of their gains since the Iran war began

While crypto altcoins outperformed for a long stretch after the outbreak of the US war with Iran, the asset class has retraced this past week.

XRP, solana, and ethereum have each dropped more than 6% in the past seven days as the total market capitalization for all of crypto (including bitcoin) has shed roughly $44 billion in the period, per CoinGecko.

Ethereum ETFs have also registered daily consecutive outflows for the past seven days, totaling more than $392.1 million. The last time these investment vehicles had such a streak was in December when ethereum decreased from $3,221 to $2,995, data from SoSoValue shows. 

The Iran war was at first a positioning shock that saw crypto thrive, in part because the asset class was “lightly owned,” according to Fredrick Collins, CEO of crypto analytics platform Velo.xyz

“Now as more concrete and persistent concerns about economic impacts have materialized, it’s not surprising to see crypto struggling as well,” Collins told Sherwood News. “In the face of cyclical (rather than transient) worries for risk assets in general, it’s not realistic to expect crypto to remain unscathed. And so we’ve unfortunately just not seen that initial relative strength in crypto continue to play out.”

Meanwhile, traders are expecting the price of ethereum to decline further this year. Prediction market-implied odds of the cryptocurrency sliding below $1,750 are at 81%, while the probability of the token tumbling under $1,500 stands at 68%, an increase from 52% on Monday. 

(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)

A drop to $1,457 would liquidate about 162,870 ethereum tokens’ worth of leveraged long positions, worth $323.3 million on Hyperliquid, per CoinGlass.

Slater Santer, a research analyst at trading firm GSR said, "Short term, the market likely remains flow-driven and headline-sensitive. Without a stabilization in ETF flows, a cooling in oil, or a renewed bid in equities, it's hard to argue for a sustained bounce in alts."

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Slater Santer, a research analyst at trading firm GSR said, "Short term, the market likely remains flow-driven and headline-sensitive. Without a stabilization in ETF flows, a cooling in oil, or a renewed bid in equities, it's hard to argue for a sustained bounce in alts."

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For the first time, Fannie Mae will allow mortgages to be backed by crypto

Fannie Mae, the government-backed mortgage finance giant, will start accepting mortgages backed by cryptocurrencies — namely bitcoin and Circle’s stablecoin, USDC. 

Mortgage firm Better Home & Finance and US-based crypto exchange Coinbase Global are rolling out a new product that enables prospective homebuyers to pledge their digital assets as down payment collateral when obtaining a mortgage backed by Fannie Mae, The Wall Street Journal reported

This means homebuyers can secure a standard conforming mortgage without liquidating tokenized assets, which potentially triggers a taxable event.

“If BTC drops in value, the mortgage terms remain unchanged, and no additional collateral is required. Market movements alone never trigger liquidation,” per a joint press release from Better and Coinbase.

“Token-backed mortgages originated by Better are designed in accordance with Fannie Mae guidelines and remain as standard conforming mortgage loans, identical to other conforming mortgages,” the announcement continued.

Max Branzburg, head of consumer and business products at Coinbase, said, “Token-backed mortgages are a major first step to unlocking homeownership for the younger generations that have struggled with barriers to saving for a traditional downpayment.”

The announcement comes more than nine months after William Pulte, the director of the Federal Housing Agency, ordered Fannie Mae and Freddie Mac to prepare a proposal that considers cryptocurrency as a reserve asset in single-family mortgage loan risk assessment. 

This means homebuyers can secure a standard conforming mortgage without liquidating tokenized assets, which potentially triggers a taxable event.

“If BTC drops in value, the mortgage terms remain unchanged, and no additional collateral is required. Market movements alone never trigger liquidation,” per a joint press release from Better and Coinbase.

“Token-backed mortgages originated by Better are designed in accordance with Fannie Mae guidelines and remain as standard conforming mortgage loans, identical to other conforming mortgages,” the announcement continued.

Max Branzburg, head of consumer and business products at Coinbase, said, “Token-backed mortgages are a major first step to unlocking homeownership for the younger generations that have struggled with barriers to saving for a traditional downpayment.”

The announcement comes more than nine months after William Pulte, the director of the Federal Housing Agency, ordered Fannie Mae and Freddie Mac to prepare a proposal that considers cryptocurrency as a reserve asset in single-family mortgage loan risk assessment. 

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GameStop transfers all but 1 bitcoin to Coinbase as collateral

It’s been one year since GameStop added bitcoin as a treasury reserve asset, but the company has since halted its accumulation strategy, joining a fray of companies pivoting away from HODLing the cryptocurrency.

The gaming and collectibles retailer was at one point the 21st-largest bitcoin treasury company, but has since dropped to 190th after pledging all but one of its 4,710 bitcoin as collateral for its covered-call strategy with Coinbase Credit, data from Bitcoin Treasuries shows. Earlier this year, GameStop moved 51% of its bitcoin to Coinbase Prime, triggering speculation that it would offload the asset.

Coinbase Credit has the “right to rehypothecate, commingle, or unilaterally sell the Pledged Bitcoin,” per GameStop’s 10K filing with the SEC on Tuesday. “As a result of these rights, we concluded that control of the Pledged Bitcoin transferred to the counterparty. Accordingly, we derecognized the Pledged Bitcoin as an intangible asset.” That said, GameStop also “recognized digital assets receivable of $368.3 million... representing our contractual right to receive equivalent amount of Bitcoin in the future.”

GameStop sold covered‑call option contracts, which have strike prices ranging from $105,000 to $110,000 and maturities extending through March 2026, to mitigate its exposure to bitcoin’s price volatility and generate incremental yield. 

The move comes as a number of other bitcoin firms have reached a tipping point and sold part of their stockpile. 

  • Empery Digital, the 23rd-largest bitcoin treasury firm, announced in a March press release that it sold $4.2 million worth of BTC to fund share repurchases. DL News also reported that a shareholder who owns 9.8% of Empery Digital demanded the company sell its entire bitcoin stockpile and the immediate resignation of its CEO and entire board of directors. 

  • GD Culture Group approved the sale of an unspecified amount of its 7,500-bitcoin reserve to fund its share repurchase program, according to a press release last month. 

  • Elsewhere, Cango sold 4,451 BTC to reduce its overall finance leverage and strengthen its balance sheet, while Riot Platforms sold around $200 million worth of bitcoin in November and December.

Despite GameStop’s pledge to Coinbase Credit, the company has technically left the door open to resume its bitcoin strategy: the gaming firm said it intends to use net proceeds from its convertible 2030 notes for general corporate purposes, including the acquisition of bitcoin. 

Shares of GameStop are up 2.7% today after posting lackluster Q4 results yesterday.

The move comes as a number of other bitcoin firms have reached a tipping point and sold part of their stockpile. 

  • Empery Digital, the 23rd-largest bitcoin treasury firm, announced in a March press release that it sold $4.2 million worth of BTC to fund share repurchases. DL News also reported that a shareholder who owns 9.8% of Empery Digital demanded the company sell its entire bitcoin stockpile and the immediate resignation of its CEO and entire board of directors. 

  • GD Culture Group approved the sale of an unspecified amount of its 7,500-bitcoin reserve to fund its share repurchase program, according to a press release last month. 

  • Elsewhere, Cango sold 4,451 BTC to reduce its overall finance leverage and strengthen its balance sheet, while Riot Platforms sold around $200 million worth of bitcoin in November and December.

Despite GameStop’s pledge to Coinbase Credit, the company has technically left the door open to resume its bitcoin strategy: the gaming firm said it intends to use net proceeds from its convertible 2030 notes for general corporate purposes, including the acquisition of bitcoin. 

Shares of GameStop are up 2.7% today after posting lackluster Q4 results yesterday.

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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Derivatives, LLC, or Robinhood Money, LLC. Futures and event contracts are offered through Robinhood Derivatives, LLC.