The brief bitcoin rally sparked by fears of U.S. tariffs has quickly faded.
As of late in the U.S. trading day, bitcoin had dropped 4.8% over the past 24 hours to $96,900, after briefly touching $101,000 just a couple of hours earlier. Many altcoins fared worse, with solana (SOL), XRP, cardano (ADA), and chainlink (LINK) experiencing declines between 6%-10%. Ether (ETH) fell by 5.3%.
The downturn seemed to coincide with a press conference led by White House crypto and AI advisor David Sacks, accompanied by leaders of key Senate and House committees.
Expectations that the press conference might focus on the potential for a strategic bitcoin reserve were quickly dashed, as the discussion revolved primarily around regulatory issues and general statements. Bitcoin was only mentioned near the end of the briefing, when Sacks responded to a question about the feasibility of a strategic reserve, noting that a White House working group is examining the idea. When asked about the recent executive order to establish a sovereign wealth fund (SWF) and its potential implications for bitcoin, Sacks deferred to Commerce Secretary nominee Howard Lutnick and Treasury Secretary Scott Bessent, who will lead the SWF initiative.
Looking ahead, bitcoin could be setting up for another test of its low from Sunday evening, below the $92,000 level. Friday’s U.S. January employment report may influence market sentiment. If the report is weak, it could prompt expectations of Federal Reserve rate cuts, potentially boosting prices. However, a strong report might lead to speculations about a rate hike, which could act as a headwind for bitcoin’s price.
