The brief bitcoin rally spurred by trade war concerns has quickly reversed, with prices falling sharply.
By the end of U.S. trading hours, bitcoin had dropped 4.8%, reaching $96,900 after briefly spiking to $101,000 earlier in the day. Many altcoins took an even harder hit, with solana (SOL), XRP, cardano (ADA), and chainlink (LINK) all posting declines between 6% and 10%. Ether (ETH) also saw a significant drop of 5.3%.
The downturn seems to align with a press conference led by White House crypto and AI czar David Sacks, joined by prominent Senate and House committee chairs. While market participants hoped for updates on a potential strategic bitcoin reserve, the conversation mainly revolved around regulatory matters. Bitcoin was briefly mentioned at the end, with Sacks confirming that a White House working group is examining the feasibility of a bitcoin reserve.
Looking ahead, bitcoin could be setting up for a retest of its recent low below the $92,000 mark. Friday’s U.S. employment data will likely influence the market further. A weaker jobs report could renew speculation about potential rate cuts from the Federal Reserve, offering a potential boost for prices. Conversely, a stronger report could fuel concerns about future rate hikes, which could weigh on the market.
