Cryptocurrency Market Faces Selling Pressure

The cryptocurrency market has come under serious selling pressure as investors react to the highly anticipated White House crypto summit.

Bitcoin’s Decline

Bitcoin, the world’s largest cryptocurrency, fell below $80,000 for the second time in three weeks, hitting a level not seen since before the US elections in November.

Market Volatility

This market volatility follows President Donald Trump’s executive order on Friday establishing a strategic bitcoin reserve and digital asset stockpile. Trump also committed to signing stablecoin legislation before August and ending the practice of purging cryptocurrencies from the banking sector. Initially, this announcement sparked optimism among some investors; however, as details emerged, skepticism set in.

> “Donald Trump’s highly anticipated crypto summit was an exemplary exercise in public relations,” said Kai Warwzinek, co-founder of Impossible Cloud Network. “While the US President promised a major shift for crypto, he delivered next to nothing.”

Executive Order Details

The executive order requires a full accounting of federal digital asset holdings, stipulating that the U.S. will not sell any Bitcoin (BTC) deposited into the reserve. Instead, these assets will be seen as a store of value, similar to a digital Fort Knox. Moreover, the U.S. Digital Asset Stockpile will include non-Bitcoin digital assets seized in criminal or civil proceedings, without plans to acquire additional assets beyond seizures.

The US government currently holds 198,109 BTC, valued at approximately $16 billion.

Investor Concerns

Concerns about the plan’s implementation are keeping investors cautious. “If Trump’s Bitcoin reserve plan lacks clear details, cryptocurrencies could be highly volatile,” said Marion Laboure of Deutsche Bank. “The timing, money and allocation are uncertain. The market is cautious, weighing profits if the plan moves forward and preparing for losses if it stalls.”

Annualized Bitcoin volatility rose to 62.67% as of March 9, the highest level in the last three months. Analysts attribute this spike to a mismatch between market expectations and the reality of Trump’s crypto initiative.

> “The current crypto sell-off highlights the mismatch between expectations and reality,” remarked Nic Puckrin, founder and financial analyst at The Coin Bureau. “Investors had unrealistic expectations for the crypto reserve, and were disappointed when the details emerged.”

Puckrin also emphasized that the Trump administration is primarily focused on long-term interest rates and the budget deficit, suggesting that spending cuts and tariffs are likely to persist.

> “This may be painful for risk assets in the short term, but 10-year Treasury yields are falling very quickly,” he noted. “In the long run, this is much more important to Trump and his voters because it means interest rates are going to fall and the U.S. can finally get out of debt.”

Future Outlook

Despite the short-term turbulence, some experts believe that an improving regulatory environment and deeper integration with traditional finance could ultimately strengthen the cryptocurrency sector.

> “The promise of an improving regulatory environment and integration with traditional finance rails will solidify the important role of cryptocurrencies in the U.S. financial landscape,” concluded Puckrin.

This is not investment advice.