Berachain (BERA) has suffered a steep decline over the past week, shedding 30% of its value as bearish sentiment plagues the general market.
In the past 24 hours alone, the token has slid another 6%, deepening concerns of further downside. With growing bearish bias against the altcoin, this might be the case in the near term.
BERA Faces Mounting Downside Risk
Berachain’s sharp decline has triggered a surge in short positions across its futures market. This rise in demand for shorts is evident in its funding rate, which has been negative since the token’s launch on February 6. At press time, this is at -0.11%.
The funding rate is a periodic fee exchanged between long and short traders in perpetual futures contracts to keep prices aligned with the spot market.
A negative funding rate means that short traders are paying long traders, indicating a stronger demand for short positions.
As with BERA, if an asset experiences an extended period of negative funding rates, it suggests sustained bearish sentiment. It indicates that the token’s traders consistently bet on further price declines. This prolonged negativity could increase BERA’s price volatility and extend its price fall.
In addition, BERA has noted significant fund outflows from its spot markets over the past few days. Per Coinglass, the altcoin has noted almost $2 million in spot market outflows today alone.
When an asset experiences spot outflows like this, it signals a surge in selling pressure. It indicates a bearish trend as investors reduce exposure or take profits, potentially leading to further price declines.
BERA at a Crossroads—Break Below $6.07 or Rally Toward $7.36?
Berachain trades at $6.14 at press time, resting slightly above support at $6.07. If the bearish bias against the altcoin strengthens, its price could break below this support floor, causing the token to trade at a low of $5.35.
If the bulls fail to defend this level, BERA could slip to its all-time low of $4.74.
Donald Trump has followed through on his promises and signed an executive order to establish a Strategic Bitcoin Reserve and a separate US Digital Asset Stockpile.
While some industry figures have lauded the order, others remain skeptical. They argue that the initiative is little more than a rebranding of existing government holdings with no substantive new strategy.
Donald Trump Signs Order for Strategic Bitcoin Reserve
“Bitcoin, the original cryptocurrency, is referred to as “digital gold” because of its scarcity and security, having never been hacked. With a fixed supply of 21 million coins, there is a strategic advantage to being among the first nations to create a Strategic Bitcoin Reserve,” the order read.
Arkham Intelligence data shows that the US government holds 198,109 BTC in its public wallets, valued at $17.5 billion at current market prices.
Despite this substantial holding, David Sacks, the White House’s AI and Crypto Czar, noted that a comprehensive audit of the government’s digital assets has never been conducted. The new executive order mandates this accounting.
“Premature sales of Bitcoin have already cost US taxpayers over $17 billion in lost value. Now the federal government will have a strategy to maximize the value of its holdings,” he wrote.
Industry Experts Divided on Strategic Bitcoin Reserve
Jacob King, founder of WhaleWire, dismissed the recent attention around the reserve.
“In reality, this has existed for over a decade—they’re just slapping a fancy title on it to appease Bitcoiners,” he remarked.
King also pointed out that the reserve would not involve any new Bitcoin purchases. Therefore, he believes, this makes the move largely insignificant in the grand scheme of the market.
Peter Schiff, an outspoken critic of Bitcoin, also weighed in on the order. According to Schiff, the move was made under pressure from donors and conflicted cabinet members.
He described the order as a “bogus” attempt to capitalize on the Bitcoin the government already holds.
“If they seize any more Bitcoin they can keep that too. But they can’t buy any more, as buying by definition requires a payment,” Schiff posted.
Despite the criticisms, some industry leaders see the order as a significant step toward legitimizing Bitcoin on the world stage.
“The end game was never the US government buys all of the world’s Bitcoin,” Ryan Rasmussen, Head of Research at Bitwise, said.
Rasmussen explained that the move will likely prompt other countries to buy Bitcoin. He also expects it to pressure wealth managers, financial institutions, pensions, and endowments to adopt the cryptocurrency.
The reserve, Rasmussen said, will alleviate concerns about the US selling its holdings and may pave the way for future acquisitions. He added that the move increases the likelihood of US states adopting Bitcoin.
Matt Hougan, CIO at Bitwise, also concurred. He pointed out that the order could significantly reduce the likelihood of future Bitcoin bans. Hougan added that the reserve,
“Accelerates the speed at which other nations will consider establishing strategic bitcoin reserves, because it creates a short-term window for nations to front-run potential additional buying by the US.”
Analyst Nic Carter also praised the decision, calling it a successful fulfillment of a key campaign promise. He highlighted that Bitcoin had received official US government approval, a distinction not granted to other cryptocurrencies. Carter emphasized that using no taxpayer funds helped shield the initiative from backlash.
“Announcement couldn’t have gone better,” he claimed.
The signing of the executive order took place just one day before the White House Crypto Summit. Initially, it was anticipated that Trump would sign the Bitcoin reserve order at the summit, which had driven Bitcoin prices up. Nonetheless, the actual signing led to a dip in the cryptocurrency’s value.
After briefly regaining that level on March 5, Bitcoin dropped below $90,000 again. At press time, Bitcoin was trading at $87,469, marking a 4.5% decrease over the past 24 hours.
At the start of 2025, several altcoins surged to new all-time highs. Others climbed to multi-month peaks, riding the wave of the Donald Trump-fueled rally that swept through the crypto market.
However, Trump’s escalating trade wars and broader macroeconomic unrest have led to a significant downturn in many altcoins, raising questions about the timing of the next altcoin season.
Altcoin Season Slips Further Away
Altcoin season refers to a market cycle in which crypto assets other than Bitcoin significantly outperform BTC in terms of price gains. Many altcoins witness significant price surges during this period, often due to increased investor speculation, capital rotation from BTC into other crypto assets, and bullish sentiment in the market.
This cycle commences when at least 75% of the top 50 altcoins outperform BTC over a three-month period. However, this is far from the reality. The Altcoin Index, which tracks this trend, has plunged to its lowest level since October 2024, signaling continued weakness in the sector.
As of this writing, only 24% of top altcoins have outperformed leading crypto Bitcoin over the past 90 days, highlighting its dominance in the current market cycle. This persistent underperformance suggests that an altcoin season may still be far off.
Further reinforcing this bearish outlook, TOTAL2, the metric tracking the total market capitalization of all cryptocurrencies excluding BTC, has remained in a descending parallel channel since the beginning of the year.
This pattern signals a sustained downtrend. It is formed when an asset’s price moves between two downward-sloping parallel trendlines, with lower highs and lower lows over time. As of this writing, TOTAL2 is at $1.14 trillion, plummeting by 17% since January 1.
This decline confirms the lack of strong bullish momentum across the altcoin market, hinting at zero likelihood of an altcoin season kicking off anytime soon.
Bitcoin Dominance Climbs as Market Pullback Deepens
While the market has witnessed a significant pullback recently amid Trump’s trade wars, Bitcoin dominance has continued to increase. An assessment of Bitcoin’s dominance (BTC.D) on a daily chart confirms the same.
This metric, which measures the percentage of the total cryptocurrency market capitalization that Bitcoin holds, has remained above an ascending trend line since last December. As of this writing, it sits at 61.29%.
If BTC’s dominance remains elevated, it could further delay the prospects of an altcoin season.
