Bitcoin Falls Below $97,000 After David Sacks’ Speech
Following a momentary crash caused by panic related to new trade tariffs, Bitcoin experienced another sharp drop below $97,000 at the end of David Sacks’ speech. This 4.8% correction during the US session surprised investors, especially since a few hours earlier, BTC had briefly passed the $101,000 mark.
BTC has risen above $98,000 at the time of writing this article.
Market Disappointed by David Sacks’ Conference?
The main catalyst for this sell-off seems to be the conference led by David Sacks, the White House’s crypto czar, alongside key committee chairs from the Senate and House of Representatives. While many market players were hoping for a major announcement regarding the creation of a strategic Bitcoin reserve, the subject was only briefly addressed towards the end of the conference.
Sacks confirmed that the White House’s crypto task force is studying the feasibility of such a reserve, but he avoided making any definitive statements. When asked by a journalist if the recently signed Executive Order on the creation of a sovereign fund implied an allocation in Bitcoin, Sacks dodged the question, deferring it to the expected Secretary of Commerce, Howard Lutnick.
Trump’s Pro-Crypto Policy Tested by the Market
Despite this short-term disappointment, the Trump administration’s stance remains staunchly pro-crypto. David Sacks reaffirmed on CNBC that ‘Bitcoin is an excellent store of value,’ emphasizing its resilience and unmatched security over the past twelve years. He also reiterated the government’s commitment to establishing a clear regulatory framework in collaboration with Congress.
According to Sacks, the chairpersons of the financial and banking committees in the House and Senate are committed to advancing legislation within the next six months to regulate the digital asset market. This is a notable change as the Securities and Exchange Commission (SEC), under new leadership, seems to be moving away from a law enforcement regulation approach, now favoring a clear distinction between cryptocurrencies considered financial securities and those that are not.
Stablecoins: A Major Geopolitical Issue
Another key topic tackled by Sacks is stablecoins. Currently, most of the innovation in this sector is happening outside of the United States due to persistent regulatory uncertainty. The Trump administration aims to reverse this trend and encourage the issuance of stablecoins on US soil.
According to Sacks, these assets could ‘expand the dominance of the dollar internationally’ by facilitating its adoption in the digital economy and stimulating demand for US Treasury bonds. This approach aligns with the strategic intention of using blockchain technology to strengthen the US economic supremacy in the face of emerging alternatives, particularly from China.
The US Jobs Report: a Key Factor Moving Forward
Beyond government announcements, the next major test for Bitcoin and the crypto market could come from the US jobs report scheduled for Friday. A lower-than-expected release could reignite hopes of a Fed rate cut, providing support to the digital asset market. Conversely, strong figures would amplify concerns of continued high rates, further weighing on Bitcoin and the entire sector.
