On March 7th, Friday, the cryptocurrency market witnessed a notable downturn amid the White House Crypto Summit. The pioneer digital asset, Bitcoin, plunged over 3.5% during the event to trade at $86,648, while its market cap fell to $1.71. The selling pressure could be triggered by investors’ dissatisfaction as Trump’s crypto summit lacked detailed plans and highlighted support from the government bodies for this industry.
Key Highlights:
- President Trump says he promises to make “America the Bitcoin superpower of the world.”
- A lack of concrete details on how the U.S. government will bolster Bitcoin accumulation led to investors’ disappointment and a market downturn.
- A falling wedge pattern drives the current correction trendline in Bitcoin price.
Bitcoin Dips to $86K Amid Market Doubts Over U.S. Crypto Strategy
On March 7th, Friday, U.S. President Donald Trump welcomed crypto leaders to the first-ever White House Digital Assets Summit. Earlier today, Trump signed the executive order to establish a Strategic Bitcoin Reserve, drawing parallels to existing reserves of oil and gold.
Although specifics on this initiative were limited, the event highlighted significant support for cryptocurrencies at a governmental level. U.S. bank regulators clarified that national banks could engage in crypto activities, such as asset custody and stablecoin transactions, without prior regulatory approval.
Treasury Secretary Scott Bessent emphasized that while the U.S. is moving towards embracing digital assets, the U.S. dollar will remain the world’s dominant reserve currency, and stablecoins will play a role in maintaining that position.
In a candid moment, Trump criticized previous administrations, particularly the Biden era, for selling off tens of thousands of Bitcoins at lower prices. He later shifted to how the U.S. government might handle its BTC holding in the future.
“From this day on, America will follow the rule that every Bitcoin holder knows very well – never sell your Bitcoin.”
Despite such a positive statement, the crypto market witnessed a notable downturn, which many analysts believe to be due to a lack of a clear roadmap on how the current government will fulfill its promises.
Falling Wedge Pattern Hints Imminent Breakout
By the press time, the Bitcoin price traded at $86,827 with an intraday loss of 3.5%. With the bearish downturn, the coin price continues with the formation of a falling wedge pattern in the daily chart.
This chart setup is characterized by two covering trendlines, which typically drive a temporary downturn before buyers recuperate the exhausted bullish momentum. The current momentum could lead the BTC price to 7.2% down to retest the pattern’s lower trendline support.
However, if the pattern holds, the buyers could push the price against the overhead trendline to trigger a bullish breakout. If successful, Bitcoin could surpass the $109,000 mark and reenter price discovery mode.
Also Read: Secretary Lutnick: President Trump to Unveil US Bitcoin Reserve Strategy, Bitcoin Surges to $90K
