Executive Summary
Bitcoin closes out March 2017 on a defiant note, surging past $1,050 and reclaiming the lion’s share of losses suffered after the SEC’s rejection of the Winklevoss Bitcoin ETF on March 10. The cryptocurrency’s resilience has surprised many skeptics, with the price recovering from a flash crash below $1,000 to post a weekly gain of over 12%. At press time, Bitcoin’s market capitalization stands at approximately $17.9 billion, firmly cementing its position as the world’s most valuable digital asset.
The recovery is not happening in isolation. Prominent venture capitalist Fred Wilson of Union Square Ventures delivered a compelling endorsement of Bitcoin and the broader cryptocurrency space at a StockTwits conference on March 31, comparing Coinbase to Goldman Sachs and recommending that even retail investors allocate a small percentage of their portfolios to digital assets. His comments signal a growing mainstream acceptance that extends well beyond the crypto-native community.
The Numbers Unpacked
Bitcoin’s price action in the final week of March 2017 tells a story of remarkable resilience. After bottoming near $970 in the immediate aftermath of the SEC’s ETF decision on March 10, the price staged a methodical recovery, climbing steadily through the mid-$900s before breaching the psychologically important $1,000 barrier once again on March 17. By March 31, Bitcoin is trading at approximately $1,022 to $1,055, with some exchanges reporting prices as high as $1,100.
The weekly gain of 12.81% represents the strongest seven-day performance since the pre-ETF rally in early March. Daily trading volume has surged to over $514 million across major exchanges, demonstrating that the post-rejection recovery is backed by genuine buying pressure rather than thin market manipulation.
Ethereum, the second-largest cryptocurrency by market capitalization, has also posted impressive numbers, trading at approximately $48.75 with a market cap of $4.4 billion. However, ETH has lagged Bitcoin’s recovery over the past week, posting a modest decline of 4.64%, suggesting that traders are rotating back into Bitcoin as the market stabilizes.
The real standout performer has been Ripple’s XRP, which has posted a staggering 544% weekly gain to trade at $0.061, with its market capitalization surging past $2.2 billion. Litecoin has also enjoyed a strong week, gaining 90% to reach $7.74, driven in part by anticipation of SegWit activation on its network.
Historical Context
The SEC’s rejection of the Winklevoss Bitcoin ETF on March 10, 2017, was widely expected to be a watershed moment for the cryptocurrency market. The proposed ETF, which had been under regulatory review for over three years, was seen by many as the gateway product that would open Bitcoin to institutional and retail investors who had been reluctant to navigate the complexities of cryptocurrency exchanges.
When the SEC issued its disapproval, Bitcoin’s price plummeted approximately 18% within hours, dropping from around $1,300 to below $1,080 on many exchanges. The altcoin market suffered even more severe losses, with Ethereum, Litecoin, and most other digital assets losing 20 to 30% of their value in the panic selling that followed.
Yet the crash proved remarkably short-lived. Unlike the prolonged bear markets that followed previous negative regulatory developments, Bitcoin’s recovery began almost immediately, with dip buyers stepping in aggressively below $1,000. The speed of the rebound suggests that the market had already partially priced in the possibility of rejection and that underlying demand fundamentals remained strong.
This pattern mirrors Bitcoin’s historical tendency to absorb negative news events and emerge stronger. From the Mt. Gox collapse in 2014 to China’s repeated crackdowns on cryptocurrency exchanges, Bitcoin has consistently demonstrated an ability to recover from acute shocks, often within weeks rather than months.
Expert Consensus
Fred Wilson’s comments at the StockTwits Stocktoberfest East conference on March 31 represent perhaps the most significant mainstream endorsement of Bitcoin this quarter. The venture capitalist, whose Union Square Ventures was an early investor in Twitter, Tumblr, and Coinbase, drew a direct parallel between Coinbase and Wall Street’s most storied institutions.
They are like J.P. Morgan or Goldman Sachs for blockchain, Wilson said of Coinbase, which has a reported valuation exceeding $400 million. If you look at what they are world class at, it is security, trust, safety, fraud — all these things that frankly banks are good at.
Wilson, who has personally invested in Bitcoin, Ethereum, and a small amount of Litecoin, recommended that retail investors consider allocating up to 5% of their assets to cryptocurrencies. It is still early days; I do not think you want to go all in on it, but I think you want to be in it, he advised the audience of stock traders.
His comments are particularly notable given the context: Coinbase is currently under scrutiny from the IRS, which is seeking user records as part of a broader investigation into potential tax evasion by cryptocurrency holders. Wilson’s willingness to publicly endorse the platform amid this regulatory pressure signals confidence in the long-term viability of the crypto ecosystem.
Other institutional voices are joining the chorus. Arthur Hayes, CEO of BitMEX, has publicly predicted that Bitcoin will reach $10,000 within the next few years, while analysts at Goldman Sachs have reportedly been exploring ways to integrate cryptocurrency into their research coverage.
Forward Outlook
As March gives way to April 2017, the Bitcoin market finds itself in a remarkably bullish position. The swift recovery from the ETF rejection has demonstrated the depth of demand for Bitcoin, while the growing chorus of institutional endorsements suggests that mainstream adoption is accelerating.
Several catalysts could drive the next leg of Bitcoin’s rally. The Japanese government’s formal recognition of Bitcoin as a legal payment method, effective April 1, 2017, is expected to unlock significant demand from one of the world’s largest economies. Japan’s Financial Services Agency has established a comprehensive regulatory framework for cryptocurrency exchanges, providing the legal clarity that institutional investors have been demanding.
The ongoing scaling debate within the Bitcoin community remains the primary risk factor. The conflict between supporters of SegWit (Segregated Witness) and those favoring a simple block size increase continues to create uncertainty about Bitcoin’s ability to handle growing transaction volumes. A resolution to this debate, whether through SegWit activation or a hard fork, would likely provide a significant bullish catalyst by removing the overhang of uncertainty.
For now, the data tells a clear story: Bitcoin has survived its latest regulatory test and emerged stronger for it. With growing institutional interest, expanding regulatory frameworks in major markets, and a price that refuses to stay below $1,000, the stage is set for what could be a historic second quarter for the world’s first cryptocurrency.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency investments are highly volatile and carry significant risk. Past performance is not indicative of future results. Always conduct your own research before making any investment decisions.
Fred Wilson comparing Coinbase to Goldman Sachs in 2017 sounds crazy until you realize Coinbase is now publicly traded and worth more than some banks
The Winklevoss ETF rejection was the best thing that happened. Forced the market to build real infrastructure instead of relying on a single approval.
12% weekly gain after getting rejected. btc doesnt care about your regulatory opinions