The recent rally in Bitcoin (BTC) and the broader cryptocurrency market, which was prompted by heightened panic over tariffs, has proven to be remarkably short-lived. Late in the U.S. trading day, Bitcoin saw a decline of 4.8% over the past 24 hours, dropping to approximately $96,900 after briefly climbing to the $101,000 mark just two hours earlier.
Many alternative cryptocurrencies fared even worse during this downtrend. Solana (SOL), XRP, Cardano (ADA), and Chainlink (LINK) experienced declines ranging from 6% to 10%, while Ether (ETH) saw a decrease of 5.3%.
The downturn appeared to coincide with a crypto-related press conference featuring David Sacks, the White House’s crypto and AI czar, along with the heads of significant Senate and House committees. Investors had hoped the conference would focus on the potential establishment of a strategic Bitcoin reserve; however, the discussion primarily revolved around regulatory issues and general commentary.
Bitcoin was mentioned briefly at the conclusion of the press conference. In response to a question, Sacks indicated that a White House working group is currently examining the viability of creating a strategic Bitcoin reserve. When asked about the implications of a recent executive order regarding a sovereign wealth fund for Bitcoin’s future, Sacks deferred to Commerce Secretary nominee Howard Lutnick, highlighting the political complexities surrounding such decisions.
Looking ahead, Bitcoin may be preparing for a retest of its Sunday evening low, dipping below the $92,000 threshold. Market participants are particularly focused on the upcoming U.S. employment report set for release on Friday. A soft employment figure could prompt speculation around potential Federal Reserve rate cuts, thereby providing a bullish outlook for Bitcoin and other cryptocurrencies. Conversely, a strong employment report might lead investors to anticipate an eventual rate hike this year—a scenario that could pose challenges for crypto prices in the absence of other supportive factors.
