Recently, the cryptocurrency market has been sluggish. Investors originally hoped that the White House cryptocurrency summit on March 7 would bring concrete policy benefits. Coupled with former U.S. President Donald Trump’s mention of Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA) last week, the market briefly rallied due to expectations of price increases. However, the summit ultimately lacked key details, leading to a subdued market reaction. Bitcoin’s price fell back to $78,706, and the mentioned altcoins experienced varying degrees of decline, undermining previous gains.
The holding of the White House cryptocurrency summit was initially seen as a critical turning point for the market, with investors expecting the U.S. government to clearly support the development of cryptocurrencies and provide regulatory guidance, thereby injecting more confidence into the market. However, during the public live broadcast, Trump primarily reiterated the contents of the executive order, emphasizing the end of the government’s anti-cryptocurrency stance, but did not provide more specific measures. The only new content concerned the legislative process for stablecoins, but the details remain unclear, leading to a disappointment in the market’s expectations for further policy details. This caused Bitcoin’s price to retreat, with market funds flowing out, resulting in an overall decline in risk assets.
Table of Contents
- Commitment of Strategic Reserves and Market Skepticism
- Impact on Bitcoin, Ethereum, and Dogecoin Prices
- The Next Steps for the Market: Inflation Data and Federal Reserve Decisions
- Short-Term Outlook and Long-Term Trends
- About BingX
Commitment of Strategic Reserves and Market Skepticism
The Trump administration’s strategic cryptocurrency reserve plan is viewed as the first clear acknowledgment of the strategic value of Bitcoin and other mainstream cryptocurrencies by the U.S. However, Arthur Hayes, co-founder of BitMEX, pointedly noted that the plan lacks substantial support, arguing that the current financial situation of the U.S. government cannot sustain a large-scale cryptocurrency reserve, and the implementation of the policy remains uncertain.
Currently, the U.S. government faces fiscal deficits, inflationary pressures, and a high-interest-rate environment. Whether there is enough capital and determination to push forward the cryptocurrency reserve plan remains a focal point for market attention. Market analysts generally believe that if the plan cannot be implemented, it will be challenging to become a bullish factor supporting the cryptocurrency market in the short term.
Prior to the summit, the market held an optimistic view of this plan, pushing Bitcoin price predictions to briefly exceed $94,000, but as the news heat faded, prices quickly retreated. Ripple, Solana, and Cardano also experienced corrections, reflecting the market’s uncertainty regarding policy execution.
Impact on Bitcoin, Ethereum, and Dogecoin Prices
As the market leader, Bitcoin briefly benefited from this round of policy expectation trading, with the highest price on the day of the summit reaching $91,233. However, by the time of this report, it fell back to $78,706, a decline of 13.73%, with the lowest point dropping to $76,606, indicating increased market volatility. The primary concern in the market is whether the execution of policy is sufficient to support continued increases in Bitcoin price forecasts.
Although Ethereum experienced a short-term rise to $2,516 due to the strategic reserve’s influence, the price subsequently fell as the summit failed to provide more regulatory details. Currently, Ethereum’s price is $1,845.45, having peaked at $2,258.47 on the day of the summit, marking a decline of 18.29%.
Meanwhile, the well-known meme coin Dogecoin (DOGE), although not included in the strategic reserves, remains influenced by overall market sentiment, failing to escape volatility in the short term. Dogecoin’s trends have historically been driven by retail investors and community sentiment; however, due to the recent overall subdued market sentiment and the lack of clear support from Elon Musk, Dogecoin has not demonstrated strong upward momentum.
The Next Steps for the Market: Inflation Data and Federal Reserve Decisions
Aside from policy factors, the upcoming release of consumer price index (CPI) and producer price index (PPI) inflation data in the U.S. will have a significant impact on the cryptocurrency market. If the data shows a cooling of inflation, it may increase the likelihood of the Federal Reserve (Fed) lowering interest rates during the March 18-19 meeting, which could boost the cryptocurrency market. However, if the data indicates persistent inflation, the Fed may maintain high-interest rate policies, placing pressure on risk assets.
Historically, non-farm employment data has also been an important reference for the market. In January this year, non-farm payrolls saw a high increase of 353,000 jobs, far exceeding market expectations, indicating a strong U.S. labor market. If March employment data continues to be strong, the Fed may lean towards delaying interest rate cuts, which would further affect liquidity and price trends in the cryptocurrency market.
Short-Term Outlook and Long-Term Trends
In the short term, the market will closely monitor U.S. economic data and further details on regulatory policies. If policies can be implemented and provide a clear execution framework, the market may resume an upward trend. However, if regulatory risks increase or the Fed’s policies are less accommodative than expected, cryptocurrency prices may remain volatile.
In the long term, if the Trump administration’s cryptocurrency-friendly stance can persist, it may bring more institutional capital into the market, leading to potential increases in Bitcoin and Ethereum price forecasts. However, the market must remain vigilant regarding the movements of regulatory agencies, especially concerning potential risks related to specific cryptocurrencies such as XRP, SOL, and ADA.
About BingX
BingX, established in 2018, is a leading global cryptocurrency exchange, providing diversified products and services such as spot trading, derivatives, copy trading, and asset management to over 10 million users worldwide. In response to market demands, it regularly offers historical price trends of mainstream coins such as Bitcoin and Ethereum, catering to users from beginners to professionals. BingX is committed to providing a trustworthy platform, equipping users with innovative tools and features to enhance their trading capabilities. In 2024, BingX proudly became a major partner of Chelsea Football Club, marking its first exciting appearance in the sports world.
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