Why Is Bitcoin Crashing Today? Trump’s Crypto Summit and Market Panic Explained

Bitcoin’s latest price drop has left investors confused. After a strong rally and a wave of positive news, many expected the cryptocurrency to push higher. Instead, it has fallen below $84,000, shaking market confidence.

Even with major bullish events like the announcement of a Strategic Bitcoin Reserve and growing institutional interest, Bitcoin’s price is moving in the opposite direction.

Let’s break down what’s really driving this unexpected decline.

Bitcoin Price Dips as Trading Volume Declines

Bitcoin is currently trading at 80,909, down 6% in the past 24 hours. Over the past week, it has fallen 3.37%, with trading volumes dropping by 53%. However, Bitcoin whales are still buying, accumulating more than 22,000 BTC in just three days, showing confidence in the long-term outlook.

Why Is Bitcoin Falling Despite Positive News?

This week brought several bullish developments for Bitcoin, including the signing of an executive order for a Strategic Bitcoin Reserve, a Crypto Summit at the White House, and positive remarks from the OCC. Despite this, Bitcoin’s price has continued to fall and may even drop below 80,000.

One key reason for the decline is President Trump’s executive order on March 7, which directed the U.S. government to use seized Bitcoin rather than purchasing new BTC from the market. This decision led to an immediate 6% price drop, bringing Bitcoin down from 90,400 to 84,979.

“The knee-jerk reaction lower likely stems from the realization that no actual budget has been allocated for BTC purchases in the near term,” QCP Capital shared in a recent note.

According to QCP Capital, the market reacted negatively because there was no actual budget allocated for Bitcoin purchases in the near term. However, they also noted that while this was not the major bullish event many expected, it still brings long-term positives.

The risk of sudden Silk Road Bitcoin sales disrupting the market is now gone, and the U.S. government has reaffirmed its long-term approach to crypto.

Everything is out-of-sync!

An analyst expressed surprise, saying that in his 8 years with Bitcoin, he never saw the price action so out of sync with the news. This week was one of the most bullish in Bitcoin’s history, yet the market is facing decline. 

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Other Factors Behind Bitcoin’s Decline

Besides the executive order, broader macroeconomic factors are also playing a role. New U.S. tariffs have triggered sell-offs across financial markets, including crypto. Additionally, the non-farm payrolls (NFP) report released on Friday suggests the Federal Reserve might tighten monetary policy, which could put further pressure on Bitcoin’s price.

Experts believe that while the Strategic Bitcoin Reserve and the Crypto Summit were positive developments, the lack of clear policies may have reduced investor excitement.

Bitcoin’s Fall Affects Altcoins

The crypto market is seeing a broader decline, with major altcoins also taking a hit:

• Ethereum (ETH) is down 6%
• XRP has fallen 6%
• Binance Coin (BNB) has dropped 4%

Despite the recent price drop, Bitcoin whales continue to buy, showing that large investors remain confident. The coming days will be crucial in determining whether Bitcoin can recover or if further declines are ahead.

Even in a sea of red, Bitcoin whales seem to know something the market doesn’t.

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