Bitcoin Drops Below $79,000 After White House Crypto Summit Fails to Deliver Clear Policies

2025-03-11

Crypto Market Volatility as Policy Optimism Fades

The crypto market faced a sharp correction following the March 7 White House Crypto Summit, as investors hoped for regulatory clarity but were left disappointed by a lack of concrete policy details.

Adding to the hype, former U.S. President Donald Trump had recently named Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA) in public discussions, briefly fueling a rally. However, as the summit failed to deliver clear support measures, market sentiment weakened, pushing Bitcoin back to $78,706 and causing widespread declines among altcoins.

White House Crypto Summit: Expectations vs. Reality

The summit was initially seen as a pivotal moment for the industry, with hopes that the U.S. government would signal strong support for crypto adoption and provide a clear regulatory framework.

However, during the live broadcast, Trump largely reiterated previous executive orders, focusing on ending the government’s anti-crypto stance without offering new actionable policies.

The only notable announcement was related to stablecoin legislation, but the lack of concrete details left investors uncertain, leading to a pullback in Bitcoin’s price and an outflow of capital from risk assets.

Strategic Crypto Reserves: More Doubts Than Confidence

The Trump administration’s plan to hold crypto reserves was initially seen as a historic move, recognizing Bitcoin and other digital assets as strategic assets.

However, BitMEX co-founder Arthur Hayes criticized the plan, arguing that it lacks financial feasibility given the U.S. government’s fiscal deficit, inflation pressures, and high-interest rates.

  • Market sentiment was initially bullish, with some forecasts predicting Bitcoin could surpass $94,000.
  • As optimism faded, Bitcoin and altcoins quickly retraced their gains.
  • Ripple (XRP), Solana (SOL), and Cardano (ADA) also declined, reflecting the market’s uncertainty over policy execution.

Bitcoin, Ethereum, and Dogecoin Price Reactions

  • Bitcoin (BTC):
    • Peaked at $91,233 on the summit day.
    • Dropped 13.73% to $78,706 by today.
    • Briefly dipped to $76,606, highlighting market volatility.
  • Ethereum (ETH):
    • Briefly surged to $2,516 amid policy optimism.
    • Currently trading at $1,845.45, down from a summit-high of $2,258.47 (-18.29%).
  • Dogecoin (DOGE):
    • Not included in the strategic reserve plan, yet affected by overall market sentiment.
    • No strong upward momentum due to lack of endorsement from Elon Musk and broader market weakness.

What’s Next for the Crypto Market?

Upcoming Economic Data and Fed Policy Decisions

Beyond policy developments, the market is also awaiting key U.S. inflation and employment data, which could heavily influence crypto prices:

  • Consumer Price Index (CPI) & Producer Price Index (PPI):
    • If inflation cools down, the Federal Reserve (Fed) may consider rate cuts at its March 18-19 meeting, which could boost crypto prices.
    • If inflation remains sticky, the Fed may keep interest rates high, putting pressure on risk assets.
  • Jobs Report (Non-Farm Payrolls):
    • January’s strong 353,000 job gains exceeded expectations, signaling labor market strength.
    • If March’s job data remains strong, the Fed may delay rate cuts, limiting crypto market liquidity.

Short-Term and Long-Term Crypto Market Outlook

Short-Term: Volatility Likely to Continue

  • Market attention will remain on U.S. economic data and regulatory developments.
  • If policies provide clear execution frameworks, crypto prices may rebound.
  • If uncertainty persists, Bitcoin and altcoins could stay volatile.

Long-Term: Institutional Adoption Hinges on Regulation

  • If Trump’s pro-crypto stance continues, institutional investors may increase exposure.
  • Bitcoin and Ethereum could see renewed demand.
  • However, altcoins like XRP, SOL, and ADA face regulatory risks, which could impact their long-term trajectory.

Final Thoughts

The March 7 White House Crypto Summit failed to deliver the regulatory clarity the market hoped for, leading to a sharp sell-off. While Bitcoin and major altcoins initially benefited from speculation, the lack of concrete policy measures caused a market correction.

Moving forward, all eyes are on upcoming inflation data and the Federal Reserve’s interest rate decisions. A dovish Fed stance could revive the crypto rally, while higher-for-longer rates may keep the market under pressure.