This week’s crypto market update is marked by rapid changes, with new regulations, major investments, and volatile price movements shaping its future.
In this article, we’ll explore Senator Cynthia Lummis’ reintroduction of the BITCOIN Act of 2025, a proposal that could see the U.S. government acquire 1 million BTC over five years.
We’ll also examine MGX’s record-breaking $2 billion investment in Binance, signaling a new era of institutional crypto adoption. Meanwhile, reports suggest the Trump family is in talks to acquire a stake in Binance, adding a political twist to the industry’s biggest exchange.
On the market side, Bitcoin, Ethereum, and Solana saw sharp declines, while a drop in crypto trading volume points to possible market exhaustion.
Let’s break it all down!
Bitcoin Act of 2025
Source: The Coin Republic
On March 11, Senator Cynthia Lummis reintroduced the BITCOIN Act in the 119th Congress, which aims to establish a U.S. Bitcoin reserve.
The bill proposes that the U.S. government purchase 200,000 Bitcoin annually over five years, totaling 1 million BTC. The initiative seeks to bolster America’s financial security and maintain its leadership in financial innovation.
The money to buy this Bitcoin would not come from new spending. Instead, it would be taken from existing funds within the Federal Reserve and Treasury.
The bill also says the U.S. government can get even more Bitcoin in other ways, including Bitcoin seized from crimes, Bitcoin given as gifts, or Bitcoin transferred from different government agencies.
Additionally, states could contribute to this reserve by storing their own Bitcoin holdings, such as Texas, as we discuss in our previous article.
The bill also now sets a formal evaluation process for Bitcoin forked assets and airdropped assets in the reserve.
Initially, the bill required all forked assets, such as BCH and BTG, to be stored in the reserve and couldn’t be sold or disposed of for five years unless authorized by law.
The new bill now directs the Secretary after the mandatory holding period to evaluate and retain the most valuable asset based on market capitalization while retaining the “dominant asset.”
Source: Senator Cynthia Lummis
Bitcoin Act vs Trump’s Strategic Bitcoin Reserve
While both Lummis’s bill and Trump’s executive order aim to establish a Bitcoin reserve, they differ in key aspects.
Trump’s Strategic Bitcoin Reserve
- Created by: Executive Order (No congressional approval needed)
- Can it be reversed? Yes, by a future administration
- How Bitcoin is acquired: Seized digital assets from law enforcement actions
- Goal: Hold Bitcoin as part of national reserves
- Ongoing accumulation? No commitment to continuous purchases
Lummis’s Bitcoin Act
- Created by: Legislative proposal (Must pass through Congress)
- Can it be reversed? No, would become law if passed
- How Bitcoin is acquired: Actively purchased from the open market
- Goal: Accumulate 1 million BTC over 5 years
- Funding sources:
Federal Reserve remittances
Potential gold revaluation
Key Difference
- Trump’s plan relies on confiscated crypto and can be overturned easily.
- Lummis’s plan legally mandates Bitcoin purchases, creating a more permanent national asset.
Three Main Changes the Bitcoin Bill Introduces
Source: Ash Crypto
1. Acquisition of 1 Million Bitcoin Without Taxpayer Funding
The bill proposes that the U.S. government acquire 1 million BTC over five years (200,000 BTC annually) to strengthen the national balance sheet while ensuring transparent federal Bitcoin management.
2. Budget-Neutral Funding Strategies
To finance the Bitcoin acquisitions, the bill outlines budget-neutral strategies, including:
- Federal Reserve Remittances: Redirecting a portion of annual Treasury remittances.
- Gold Revaluations: Using increased gold reserve values.
- Exchange Stabilization Fund: Allocating resources from this fund.
These methods are designed to ensure that the acquisition of Bitcoin does not impose additional costs on taxpayers.
3. Protection of Self-Custody Rights
A key part of the bill is protecting people’s right to own, store, and use Bitcoin without government interference.
It ensures that individuals can control their own Bitcoin (self-custody), supporting financial freedom and personal choice.
These rules aim to make the U.S. a leader in digital assets while strengthening the economy and protecting financial rights.
Market Outlook
Advocates of the Bitcoin Act argue that establishing a significant Bitcoin reserve could enhance the United States’ financial resilience and position it as a leader in digital asset innovation.
However, critics caution about the volatility of cryptocurrencies and the potential risks associated with allocating substantial national resources to Bitcoin.
The BITCOIN Act of 2025 is currently under review by the Senate Committee on Banking, Housing, and Urban Affairs.
Its progress will be closely monitored by stakeholders in both the financial sector and the broader public.
The reserve aims to avoid selling Bitcoin and will grow in a budget-neutral way.
MGX Invests a Record $2 Billion in Cryptocurrencies on Binance
Source: Coinfomania
On March 12, MGX, an Abu Dhabi-based artificial intelligence and technology investment firm, made a historic $2 billion investment in Binance, marking the largest institutional investment ever made in the cryptocurrency sector and the highest amount ever paid entirely in stablecoins.
This move signals MGX’s entry into the cryptocurrency market with the goal of driving innovation at the intersection of artificial intelligence and blockchain, supporting a tokenized and decentralized financial ecosystem.
Additionally, Binance already has a significant presence in the United Arab Emirates, where nearly 1,000 of its 5,000 global employees are based, further strengthening the partnership.
Richard Teng, CEO of Binance, emphasized that MGX’s investment is a milestone for the crypto industry and reinforces the exchange’s commitment to security and compliance.
Ahmed Yahia, CEO of MGX, stated that the partnership reflects the company’s bet on blockchain to transform digital finance and create a more inclusive ecosystem.
Trump Family in Talks to Buy a Stake in Binance
Source: Crypto Economy
The day after MGX’s investment in Binance was announced, The Wall Street Journal revealed that the Trump family was also interested in acquiring a stake in Binance.
These negotiations reportedly took place in 2024, with Binance approaching Trump representatives that same year, offering a business deal as part of a plan to resume Binance.US operations in the country.
The WSJ reports that the acquisition would benefit both sides: Binance could facilitate the return of CZ to the U.S. market (which faces regulatory challenges), while the Trump family would gain a foothold in a growing sector amid reduced regulatory restrictions.
The report also mentions that Trump, as a former president, would not face conflicts of interest if he decided to invest in Binance.US.
However, a spokesperson for the billionaire denied the claims, World Liberty Financial declined to comment, and both the Trump Organization and Binance.US, as well as Binance Global, did not respond to inquiries.
Price Analysis 03/14: BTC, ETH, XRP, SOL
Source: Cointelegraph
In the last 7 days, the cryptocurrency market experienced notable fluctuations across major assets. Here’s an analysis of the performance of Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA) during this period:
Bitcoin (BTC)
Source: Coinmarketcap
Bitcoin’s price decreased by approximately 5.37% over the week, from $86,742.68 to $84,072.49 by the time of this article.
Today’s market capitalization is approximately $134.31 billion, reflecting a 2.84% decline compared to last week.
Ethereum (ETH)
Source: Coinmarketcap
Ethereum’s price declined by approximately 12.52% over the week, from $2,138.99 to $1,921.93.
Today’s market capitalization is approximately $230, reflecting a 10.85% decline compared to last week.
Ripple (XRP)
Source: Coinmarketcap
Ripple’s price decreased by approximately 3.01% over the week, from $2.3816 to $2.31.
Today´s market capitalization is approximately $134.31 billion, reflecting 2.84% decrease compared to last week.
Solana (SOL)
Source: Coinmarketcap
Solana’s price decreased by approximately 9.10% over the week, from $139.21 to $126.53.
Today´s market capitalization is approximately $64.63 billion, reflecting 8.74% decrease compared to last week.
Market Outlook
All cryptocurrencies experienced price declines, with Ethereum and Solana facing the most significant drops.
This highlights that the cryptocurrency market has faced significant fluctuations over the past week, influenced by a combination of macroeconomic factors, regulatory developments and market sentiment, which we will discuss in detail below..
Cryptocurrency Trading Volume Drops, Signaling Market Exhaustion
Source: Image created with AI
Cryptocurrency trading volume has fallen by more than 50% since February, when it reached its highest levels of the year.
According to data from CoinGecko, daily trading volume peaked at $440 billion in early February but has since dropped 63%, reaching $163 billion on March 12.
Analytics firm Santiment states that when the trading volume of major cryptocurrencies consistently declines, even during small price recoveries, it typically signals a decrease in trader enthusiasm.
Source: Santiment
The total cryptocurrency market capitalization has dropped by nearly 25% since the beginning of February, shrinking by $900 billion.
This decline has accelerated over the past 10 days, with the market losing 15% due to fears of a U.S. recession and rising global trade tensions with key partners such as China and Canada.
The uncertainty caused by this trade war has had a significant impact on financial markets.
At the same time, the cryptocurrency market has also been suffering from capital outflows.
The volatility of these assets, combined with political and trade tensions, has led investors to seek safer options.
This is evidenced by the recent surge in gold prices, which reached a new all-time high, surpassing the $3,000 per ounce mark.
Investors are turning to gold as a hedge against inflation and economic instability, reinforcing its status as a safe haven during turbulent times.
In Summary…
This week’s developments in the crypto market highlight the shifting landscape of regulation, institutional investment, and price volatility.
The reintroduction of the BITCOIN Act of 2025 and MGX’s record-breaking investment underscore the growing influence of governments and major firms in shaping the future of digital assets.
Meanwhile, declining trading volumes and price drops suggest a cautious sentiment among investors.
In the coming weeks, regulatory responses, market adjustments, and institutional actions will likely play a crucial role in determining the next phase of the crypto industry’s evolution.
