Many analysts predicted an increase in Bitcoin in this cycle to levels higher than $200,000. However, the fall of cryptocurrency at the end of February — March 2025 forced market participants to revise their forecasts

BeInCrypto Russia team interviewed Gracy Chen, the CEO of Bitget. She revealed that Bitcoin (BTC) still has the strength to surge beyond the $200,000 milestone.

US Government Might Start Buying Bitcoin Soon – Bitget CEO

Chen drew attention to the fact that many were puzzled by the fall of Bitcoin against the background of the pro-crypt rhetoric of the current US President, Donald Trump. She noted that in America, they began to realize the idea of forming a strategic Bitcoin reserve.

“So far, the government is not purchasing BTC, but this may change soon. Such a step will give cryptocurrency institutional legitimacy and give long-term price support,” Chen told BeInCrypto.

Meanwhile, Chen drew attention to a bill progressing in Congress on stablecoins. In her opinion, the initiative signals a serious transition to a financial system based on blockchain.

“Some major players, including Elon Musk, are considering issuing their own stablecoins, and Trump’s team sees stablecoins as a way to strengthen the dollar’s status as the global reserve currency,” Chen further explained.

She also discussed the US economy’s situation. America’s Minister of Finance, Scott Bessent, hinted at a controlled economic downturn. If this is true, the expert is sure that Trump’s strategy is clear: blame Biden for the recession, use tariffs and crypto narratives to contain costs and seek to reduce interest rates to stimulate the growth of technology and AI.

“Short-term pain for long-term gain—that’s the plan,” Chen stated.

Since Bitcoin’s position largely depends on macroeconomics, investors have to monitor Trump’s actions.

“Regardless, I don’t see BTC below $70,000, rather $73-78,000, which is a good entry point for those who are hesitant. Within the next 1-2 years, BTC at $200,000 no longer seems impossible,” Chen concluded.

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A prominent crypto analyst said that Bitcoin went through a significant event over the past few months as the coin’s open interest plummeted by nearly 20%, wiping out around $12 billion.

BTC’s open interest wipeout might appear to be detrimental to the coin, but CryptoQuant analyst DarkFost believes that the cleansing is essential for a “bullish continuation”, citing that it may provide opportunities for its investors in the near term if history repeats itself.

Bitcoin’s nearly $12 billion open interest shakeout earlier this month might be just the catalyst needed for the asset to regain its upward momentum, according to a crypto analyst.

A Catalyst

Data from CoinGlass shows that the firstborn crypto’s open interest dropped by 19%, from $61.42 billion to $49.71 billion, citing that the $12-billion shakeout might be a good thing for Bitcoin.

“Following the recent panic triggered by political instability linked to Trump’s decisions, we witnessed a massive liquidation of leveraged positions on Bitcoin,” DarkFost said.

Source: Coinglass

The analyst said more than $10 billion in open interest has been erased in only two months, with an estimated $10 billion wiped out between February 20 and March 4.

DarkFost claimed that the wipeout experienced by BTC earlier this month could serve as the catalyst needed by the coin to regain the momentum that will allow the crypto to move upward. 

“This can be considered as a natural market reset, an essential phase for sustaining a bullish continuation,” the analyst explained.

Good Opportunities

DarkFost suggested that the recent ordeal faced by Bitcoin might prove to be advantageous to the crypto in the next few months.

The analyst provided a chart that shows the reset phases by determining the moments when the 90-day open interest change turns negative, adding that the current 90-day change in Bitcoin futures open interest plummeted and is now sitting at -14%.

“Looking at historical trends, each past deleveraging like this has provided good opportunities for the short to medium term,” the analyst added.

Influence Of The Federal Reserve

Some experts said that the Federal Reserve’s actions might have an impact on what will happen next to Bitcoin.

Today’s meeting of the Federal Open Market Committee could add more volatility to the crypto if there is something unexpected in the monetary policy.

Bitget chief analyst Ryan Lee explained that Bitcoin is already hovering at the $80,000 level and more volatility might be expected in the coin’s price and open interest if the March 19 Federal Open Market Committee meeting delivers any surprises.

“The market largely expects the Fed to hold rates steady, but any unexpected hawkish signals could put pressure on Bitcoin and other risk assets,” Lee said. 

As of press time, Bitcoin’s open interest stood at $49.02 billion, which is approximately a 6.5% increase over the past five days.

Featured image from The Independent, chart from TradingView

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Strategy’s aggressive Bitcoin (BTC) strategy is again under scrutiny. The company is reportedly enduring complex financial maneuvers to sustain its holdings.

While its initial 2025 convertible bond has already been redeemed, concerns remain over the company’s long-term financial stability. Particularly, its ongoing reliance on debt and stock dilution to maintain its Bitcoin purchases spurred controversy.

Stock Dilution & Debt Loom Large Over Strategy

Recently, Strategy (formerly MicroStrategy) announced the launch of a new perpetual preferred stock offering named STRF or “Strife.”

“Strategy today announced the launch of $STRF (“Strife”), a new perpetual preferred stock offering, available to institutional investors and select non-institutional investors,” the firm’s executive chair, Michael Saylor, said.

Some analysts see the move as a desperate attempt to raise cash. Cinneamhain Ventures partner Adam Cochran pointed out that the company faces a precarious financial position. He highlighted that despite its $53 million operating cash flow, it has a negative $1.06 billion in levered free cash flow.

This means that even with Bitcoin’s price appreciation, the company’s financial obligations are mounting.

“These bond issues continue to worsen each year, diluting the equity they’ve been issuing against,” Cochran stated.

MicroStrategy’s 2025 convertible bond had already been redeemed. However, the company still faces a $1 billion debt due in 2027. Further, its new stock offering suggests a growing urgency to address liquidity concerns.

“…So then this desperate yield-bearing perpetual offering 10% compounding, on a company that is 6x its asset value and negatively losing money, also has no near-term use case. You have to work towards the $1 billion 2027 debt, while paying this off,” he added.

Despite these financial pressures, Strategy continues its aggressive Bitcoin purchasing strategy. Earlier this week, the firm bought $10.7 million worth of Bitcoin, its smallest purchase of 2025. This raises questions about whether the company’s cash reserves are beginning to strain under its debt load.

Bitcoin Strategy Faces Increasing Financial Strain

Recently, reports surfaced suggesting that Strategy might be forced to sell some of its $43 billion Bitcoin holdings if financial conditions worsen.

Such a sale could cause downward pressure on Bitcoin’s price. However, experts warn that the biggest risk is to MicroStrategy shareholders, who would suffer a significant decline in stock value.

“Maintaining investor confidence will be crucial for MSTR in the wake of downswings,” the Kobeissi Letter noted.

Another major issue facing MicroStrategy is its ongoing tax dilemma. Analysts have pointed out that the company faces significant tax liabilities. The obligations come as its Bitcoin holdings could further strain its financial position.

“All the debt that MSTR has taken to buy Bitcoin is unsecured against the Bitcoin. There cannot be a margin call against the Bitcoin,” investor British HODL noted.

With a tax burden that could reach billions, questions remain about how the company intends to balance its obligations while continuing to buy Bitcoin.

MicroStrategy’s struggles highlight broader market concerns about highly leveraged Bitcoin strategies. While Saylor has been a staunch advocate of Bitcoin, his approach to financing these purchases has drawn criticism for being excessively risky.

As competition in the corporate Bitcoin investment space grows and investors become more cautious, MicroStrategy’s financial maneuvers will continue to be closely scrutinized.

BeInCrypto data shows Bitcoin was trading for $83,563 as of this writing. This represents a modest gain of 0.89% in the last 24 hours.