Bitcoin (BTC) extended its losses, falling below $97,000 after a press conference led by David Sacks, the White House crypto and AI advisor. The initial rally in bitcoin and cryptocurrencies, triggered by concerns over tariffs, proved to be short-lived.
Bitcoin and Altcoins Struggle
Late in the U.S. trading session, bitcoin had dropped 4.8% over the last 24 hours, falling to $96,900, after briefly reaching $101,000 earlier in the day. Other altcoins fared even worse, with Solana (SOL), XRP, Cardano (ADA), and Chainlink (LINK) experiencing declines of 6%-10%. Ether (ETH) dropped by 5.3%.
Sacks’ Press Conference Sparks Market Dip
The downturn in bitcoin’s price seemed to coincide with a crypto-related press conference held by David Sacks, alongside key Senate and House committee heads. Market hopes that the conference would address the potential creation of a strategic bitcoin reserve were disappointed, as the conversation focused primarily on regulatory matters.
Bitcoin was mentioned briefly at the end of the conference, when Sacks responded to a question about the feasibility of a U.S. bitcoin reserve. However, he deferred to Commerce Secretary nominee Howard Lutnick and Treasury Secretary Scott Bessent for details on the recently announced sovereign wealth fund (SWF), which will be led by them.
Market Outlook: U.S. Employment Report and Bitcoin’s Future
Bitcoin’s price may test its Sunday low, which dipped below $92,000. Looking ahead, Friday’s U.S. January employment report could have a significant impact on the market. A weaker-than-expected report might lead to speculation about Federal Reserve rate cuts, which could support higher prices for bitcoin. Conversely, a strong report could raise expectations of a potential rate hike this year, creating a headwind for prices.
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