Reflecting the United States’ growing embrace of Bitcoin, investment bank Cantor Fitzgerald has announced partnerships with Anchorage Digital and Copper.co to support its expanding global Bitcoin financing business.

Anchorage Digital and Copper.co will serve as collateral managers and custodians for Cantor Fitzgerald, providing leverage to institutional investors holding Bitcoin. Anchorage Digital and Copper will use their industry-leading security solutions to custody and safeguard client assets.

“We are thrilled to partner with Anchorage Digital and Copper, whose industry-leading security solutions will help us deliver best-in-class digital asset custody services to our clients,” said Michael Cunningham, Head of Bitcoin Financing at Cantor Fitzgerald. “We are launching with $2 billion in initial financing and expect to substantially grow the operation over time.”

With Cantor Fitzgerald’s $2 billion initial investment in Bitcoin financing, this partnership signals a major step in mainstream financial institutions embracing Bitcoin as a legitimate investment class.

Nathan McCauley, CEO and Co-Founder of Anchorage Digital, added: “Our partnership marks a major step forward for the Bitcoin financing ecosystem—built on the safety and security of federally regulated digital asset custody. By combining the best of traditional finance with the best of crypto, we are expanding the horizon of what is possible for institutions in Bitcoin.”

This partnership comes as President Donald Trump’s administration continues to advance pro-Bitcoin policies, including the creation of a strategic Bitcoin reserve and reversing previous regulatory hostility under Joe Biden’s administration.

The U.S. Securities and Exchange Commission (SEC) recently rescinded Staff Accounting Bulletin 121, which had previously blocked banks from offering Bitcoin custody services. Following this, the Office of the Comptroller of the Currency (OCC) clarified that banks are now permitted to engage in Bitcoin and crypto services, including asset custody. This shift helped paved the way for major financial institutions like Cantor Fitzgerald to expand into Bitcoin services.

Cantor Fitzgerald President Howard Lutnick, who now serves as the United States Secretary of Commerce, has been instrumental in this shift. Lutnick has been working closely with President Trump on initiatives such as the Strategic Bitcoin Reserve, a key component of the administration’s crypto strategy.

“Institutional investors are increasingly looking to diversify their portfolios and identify secure routes into the digital asset market,” said Amar Kuchinad, CEO of Copper. “This significant partnership with Cantor Fitzgerald will meet the growing demand for sophisticated financing solutions, with Copper.co’s lending and collateral management platform providing a complete toolkit for secure and strategic asset handling.”

President Donald Trump spooked Bitcoin and other markets after announcing a tariff increase on Canadian steel and aluminum from 25% to 50%, citing Ontario’s 25% tariff on U.S. electricity. 

According to Trump’s Truth Social post, the new tariffs will take effect on March 12. Trump also called on Canada to remove up to 390% dairy tariffs and warned of higher tariffs on Canadian cars by April 2.

In his statement, President Trump criticized Canada’s longstanding tariffs on U.S. dairy products, which range from 250% to 390%, labeling them as “outrageous.” He further threatened to declare a national emergency concerning electricity to counter what he described as an “abusive threat” from Canada. 

‘Egregious’ tariffs

Additionally, Trump warned that if Canada does not eliminate other “egregious” tariffs, the U.S. will substantially increase tariffs on Canadian automobile imports starting April 2—a move he claims would effectively “shut down the automobile manufacturing business in Canada.”

Trump also said that “the only thing that makes sense is for Canada to become our cherished Fifty-First State. This would make all tariffs, and everything else, totally disappear.”

Markets reacted to the announcement. Bitcoin (BTC) fell 4.2%, dipping below $80,000 while The Dow Jones dropped nearly 600 points. Investors responded to both the trade tensions and the administration’s statement that no new Bitcoin purchases were planned for the national strategic reserve.

Bitcoin has rebounded to above $81,000 at the time of writing. 

The tariff dispute follows Trump’s tariffs on Canadian and Mexican goods. Canada and Mexico have pushed back, citing trade agreement violations.

Since January 31, Bitcoin (BTC) has experienced a significant correction, with the leading cryptocurrency plummeting as much as 27.52%.

Currently valued around $79,000, Bitcoin’s price is precariously balanced above a crucial support level dubbed as “the magic line,” which is set at $74,000, pivotal in determining the market’s trajectory—bullish or bearish.

A Historical Buffer Against Bear Markets

In a recent social media post on X (formerly Twitter), market expert Doctor Profit emphasized that “the magic line” placed at $74,000 in his analysis is not just a number but a key indicator of market sentiment. 

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According to the expert, this line has historically acted as a buffer against bear market conditions. For instance, during the 2020 market correction, Bitcoin held above this support level until a bear market was confirmed. Doctor Profit asserts, “A massive correction, even 30-50%, does NOT mean a bear market.” 

This market volatility is exacerbated by fears of a recession, driven in part by President Donald Trump’s aggressive tariff policies targeting countries like China, Canada, and Mexico. 

These actions have ignited concerns over a potential trade war, further dampening investor sentiment and leading to a retreat from riskier assets, including cryptocurrencies.

However, BTC is not alone in this downtrend. Peers such as Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA), have also followed Bitcoin’s lead in this regard, experiencing 10%, 6%,5% and 6% drops respectively in the 24-hour time frame. 

Optimal Bitcoin Entry Point Between $52,000 and $60,000?

In another recent post on social media platform X, Doctor Profit discussed a possible recession scenario, suggesting that the optimal entry point for investors might be between $52,000 and $60,000. 

This forecast implies a troubling potential drop of another 34% from $79,000 towards the worst case scenario for BTC’s price at $52,000 if this occurs, heightening concerns among traders and investors alike.

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Doctor Profit remains vigilant, monitoring not only Bitcoin’s movements but also the stock market’s influence on crypto prices. He has set his sights on a critical short position with a target profit level (TP1) aligning with the magic line. 

“If Bitcoin bounces hard, I’ll re-enter,” the market expert stated. Doctor Profit concluded his analysis saying that “If it shows weakness, I’ll stay in cash and hunt for lower entries between $50,000 and $60,000.”

While finding at least a temporary foothold at the $79,460 mark, the largest digital asset, BTC, is down 14% in the past two weeks, reaching its lowest level since November 2024.

Featured image from DALL-E, chart from TradingView.com