Bitcoin is in the spotlight, but, this time, due to government actions.
In this crypto market update, we’ll discuss the recent surge in GameStop shares following a renewed bet on Bitcoin, which has reignited fears of a short squeeze.
We’ll also cover Donald Trump’s announcement of a 25% tariff on imported cars and pickup trucks, effective April 3, and its immediate impact on stock markets, global automakers, and risk assets like cryptocurrencies.
We also examine reports of a potential strategic Bitcoin reserve in China, indicating a possible policy shift after the 2021 ban.
In the U.S., Trump allies are discussing the idea of using gold reserves to purchase Bitcoin.
At the same time, markets are watching the PCE index, which could push Bitcoin higher in April. Analysts are eyeing resistance near the $90,000 level.
We cover Bitcoin’s dip to the $84,000 range, chart risks for Ethereum, a bearish pattern in XRP, and Solana’s struggle to maintain its uptrend.
Also trending: the Ghibli memecoin buzz following OpenAI’s latest update, and warnings from Bitget Wallet about risks in crypto payments.
Governments and investors are moving strategically. Is Bitcoin shifting from an investment to a geopolitical tool?
GameStop Soars with New Bitcoin Bet, Rekindles Short Squeeze Fears
Source: CoinDesk
On March 27, video game retailer GameStop announced plans to acquire Bitcoin as a treasury reserve asset.
Within just 24 hours, the company’s short interest surged by 234%, reaching 30.85 million shares sold short. This spike coincided with GameStop’s announcement that it would purchase Bitcoin using $1.3 billion in 0% convertible notes due in 2030.
The move initially excited retail traders, especially those who follow so-called “meme stocks.”
However, the broader market reacted negatively, sending GameStop shares down over 15%.
Amid the unusual activity, the New York Stock Exchange (NYSE) imposed a Short Sale Restriction (SSR) on GameStop, as trading volumes approached levels reminiscent of the 2021 short squeeze—fueled by retail investors on Reddit’s WallStreetBets.
If Bitcoin appreciates and GameStop’s strategy proves successful, experts say a new short squeeze is not off the table—reviving tensions between institutional investors and retail traders.
Donald Trump Announces 25% Tariffs on Imported Cars and Pickup Trucks
Source: BBC
President Donald Trump has announced that the United States will impose a 25% tariff on imported automobiles.
The tariffs are scheduled to take effect on April 3, 2025, and are expected to have deep impacts on the global automotive sector.
The decision raises trade barriers and could significantly affect the global auto industry.
Shares of European car manufacturers like BMW, Volkswagen, and Mercedes-Benz dropped sharply.
U.S. companies such as GM also posted losses, reflecting uncertainty over parts supply and rising production costs.
European Union leaders condemned the measure.
Germany’s Economy Minister, Robert Habeck, called for a strong EU response, while France’s Finance Minister, warned of possible retaliatory tariffs.
Countries with significant automobile exports to the U.S., like Germany, could see sales drop by as much as 50%.
American consumers may also face higher car prices, as roughly half of U.S. vehicle purchases involve imports.
The European Union is considering restrictions on U.S. tech companies, including limiting their access to government contracts and altering intellectual property rules as a way to counter the U.S. measures.
The tariffs raise the risk of a broader trade conflict. Industry leaders and governments are now banking on negotiations to prevent long-term economic fallout.
China May Be Creating a Strategic Bitcoin Reserve
Source: BitcoinConfAsia
Amid rising tensions with the U.S. and shifts in global reserve strategies, China may be reconsidering its stance on Bitcoin
Despite having banned Bitcoin in 2021, strong speculation has emerged since early 2025 that Chinese authorities have held private meetings to discuss the creation of a strategic Bitcoin reserve.
David Bailey, CEO of Bitcoin Magazine and advisor to Trump’s campaign, revealed that Chinese officials have held private meetings to explore the creation of a strategic Bitcoin reserve.
The news was posted on the official X (formerly Twitter) profile of the Bitcoin Conference Asia, sparking widespread market speculation.
Source: BitcoinConfAsia
Even without formal confirmation, such a move would align with a larger geopolitical strategy.
Accumulating Bitcoin, a decentralized, limited-supply asset, could serve as an alternative to the U.S. dollar and gold in the global financial system
Furthermore, China wouldn’t be the only major power pursuing this goal.
Recently, a member of Russia’s Public Chamber recently proposed creating a Bitcoin reserve using assets seized in criminal cases.
The proposal is inspired by the U.S., which already holds a large amount of BTC in custody from law enforcement and judicial operations.
With both Russia and China considering similar measures, speculation is growing that Bitcoin may be entering a new phase — that of a geostrategic asset.
U.S. Government Signals Possible Use of Gold Reserves to Buy Bitcoin
Source: Livecoins
Bo Hines, head of President Trump’s cryptocurrency task force, said on March 25 that there is a possibility the U.S. could use its gold reserves to acquire more Bitcoin.
Hines emphasized that this approach would allow the U.S. to strengthen its Bitcoin Reserve without negatively impacting the federal budget.
According to Trump’s executive order, the national Bitcoin reserve will initially include units already held by the government—primarily those seized in law enforcement operations.
However, it does not rule out future purchases of the cryptocurrency, though certain conditions would apply.
Hines added that several ideas are on the table and that the best will be chosen by President Trump.
The proposal reflects a broader effort to treat Bitcoin as a national economic asset, similar to gold.
Lack of Security Is the Main Barrier to Using Crypto for Payments, Study Finds
Source: UpSites Digital
The latest Bitget Wallet report found that 37% of investors see security as the main obstacle to using crypto for payments.
The data comes from a survey of 4,599 users included in Bitget’s latest On-chain Report.
Crypto scams remain major issues, especially with the rise of a phishing technique known as wallet poisoning scams.
These involve tricking victims into sending their digital assets to fraudulent addresses controlled by scammers.
Despite concerns, 46% of users prefer crypto for its speed in processing transactions
Source: Bitget Wallet On-chain Report
While Gen X users rank security as their top concern, Gen Z users focus more on usability and low costs, according to Alvin Kan, COO of Bitget Wallet.
To address the issue, Bitget has introduced protections against MEV attacks and intelligent detection systems, along with a $300 million user protection fund.
The Bitget Wallet report found that 52% of respondents in Africa and 51% in Southeast Asia expressed interest in using crypto for payments—driven by high banking fees and limited access to the traditional financial system.
Interest in Crypto Payments by Region. Source: Bitget Wallet On-chain Report
A lack of technical knowledge also prevents broader adoption.
To support regions of the world without banking services, Bitget Wallet offers a simplified onboarding process with non-custodial wallets that don’t require a traditional bank account, said Kan.
Bitcoin, Ethereum, XRP and Solana Drop: Trump’s Tariffs and Economic Data Put Pressure on the Crypto Market
Source: Coin360
Major cryptocurrencies have seen significant declines in recent days, driven by macroeconomic factors such as liquidations and technical patterns.
Bitcoin
Source: CoinMarketCap
Bitcoin dropped by approximately 4.13% on March 28, reacting to higher-than-expected PCE (Personal Consumption Expenditures) data and tariffs imposed by Trump.
According to analysts, the $84,000 range is a critical support level. A break below that threshold could push BTC to test the $78,000–$80,000 zone.
Additionally, over $16.5 billion in BTC options expired, marking one of the largest expiration events this quarter and potentially impacting short-term market volatility.
Source: X
Ethereum
Source: CoinMarketCap
Donald Trump’s announcement of a 25% tariffs on imported cars and pickup trucks, triggered widespread risk aversion across highly volatile assets such as cryptocurrencies and stocks.
Ethereum (ETH) dropped more than 2.5%, hit by large-scale liquidations: over $97 million in long positions were closed within 24 hours.
From a technical perspective, ETH’s daily chart has formed a “bear flag” pattern, which could push the price down to $1,200 if the trend plays out.
ETH/USD daily chart. Source: Cointelegraph/TradingView
XRP
Image: CoinMarketCap
Trump’s tariffs may amplify XRP’s sell-off. The market has been growing increasingly cautious in response to President Donald Trump’s 25% tariffs on imported automobiles.
As of March 28, XRP is showing a descending triangle pattern on the weekly chart, with a potential downside of up to 40% — which could bring the price down to the $0.32 range.
The market’s correlation with traditional assets, such as the S&P 500, also added pressure: the index saw consecutive declines following the tariff announcement.
Solana
Source: CoinMarketCap
SOL attempts to break through at $150. If successful, the SOL/USDT pair could climb to $165. If not, a drop below the 20-day EMA ($136) could push the price down to $125.
After an 8% rejection on March 25, the price has struggled to move past this level for three weeks, raising doubts about the continuation of the bullish trend.
Rate Cut Expectations Decline as Market Reassesses Risks
In addition to the tariffs, expectations for a June interest rate cut by the Federal Reserve have dropped from 67.3% to 55.7% in just one week, according to the CME FedWatch tool.
This change reflects the effect of rising inflation and has dampened investor appetite for speculative assets like cryptocurrencies
Alberto Musalem, President of the St. Louis Fed, warned that the tariffs could add up to 1.2 percentage points to U.S. inflation—further diminishing the chances of rate cuts in 2025.
Ghibli-Inspired Memecoins Surge After OpenAI’s Latest Image Generation Update
Source: X
While most market news this week centered on macroeconomics and policy, a surprising crossover between AI-generated art and memecoins caught traders’ attention
This unusual trend brought new energy and speculation to parts of the crypto market that had been quiet lately.
On March 25, OpenAI released an update to ChatGPT-4o, adding advanced image generation capabilities.
Users quickly embraced the new feature, creating and sharing images styled after Studio Ghibli’s signature aesthetic, known from films like Spirited Away and My Neighbor Totoro.
Prominent figures, including OpenAI CEO Sam Altman and Elon Musk, helped fuel the trend by posting AI-generated portraits on their social media accounts.
Source: X
The popularity of AI-generated images made its way into the crypto market, especially among Studio Ghibli, themed memecoins on the Solana blockchain—even though neither Musk nor Altman mentioned any Ghibli-themed tokens.
The leading coin, Ghiblification (GHIBLI), reached a market cap of $20.80 million just 19 hours after its launch, trading at $0.02083 — a surge of approximately 39,010% since its creation, according to DEX Screener.
The Ghibli Memecoin on Solana Has Surged Nearly 40,000% Since Its Launch on March 26. Source: DEX Screener
In addition to GHIBLI, at least 20 other Ghibli-related memecoins have appeared.
Traders see this as a possible sign of renewed momentum in the memecoin space, which had lost 57% of its total value since December 8, around the time Bitcoin reached $100,000 for the first time.
The token is available for swap on Klever Wallet.
Despite the excitement, it’s important to acknowledge the risks tied to investing in memecoins driven by short-lived trends.
One example is the token CHILLGUY, launched on Solana on November 15, that soared to a $643 million market cap in late November before crashing 95%. It highlights the extreme volatility and fleeting nature of hype-driven tokens.
In Summary…
Trump’s decision on tariffs shook traditional markets and showed how global politics are now closely tied to crypto prices.
Bitcoin is still in a correction, and the drop in trading volume shows that many investors are unsure about what comes next.
In the next few weeks, we may see crypto move beyond just being an investment—possibly becoming a tool in global economic decisions.
The big question now is: will these institutional moves be enough to shift the direction of the market?
