In one disappointment to another, the White House crypto summit at the end of last week failed to impress. Everyone was highly anticipating details of the supposed “strategic reserve” that Trump touted. But it wasn’t all too convincing as it pertained more to regulatory framework. That said, Trump’s words were still something to take note of.
“The federal government is already among the largest holders of Bitcoin, as you know, really one of the largest holders in the world, with as many as 200,000 Bitcoin obtained via civil law and various other forms of law, including enforcement actions. These existing holdings will form the foundation of the new reserve. From this day on, America will follow the rule that every Bitcoiner knows very well, never sell your Bitcoin.”
Bitcoin (BTC/USD) daily chart
The lack of polish sent Bitcoin down over the weekend to retest the $80,000 mark and that’s where we are left to start the new week as well.
The break of the 200-day moving average (blue line) is a notable technical development, providing added impetus for sellers now. But as a whole, there needs to be a firmer break under $80,000 and the 50.0 Fib retracement level of the swing higher since August last year at $79,204 at this stage.
It’s definitely a testing time for cryptocurrencies at the moment. Bitcoin’s drop may not feel as bad but other cryptos are getting pulled lower into much dire straits. Ethereum itself is now testing its lowest levels since November 2023 and knocking on the door of a drop under $2,000. It is down nearly 50% from the highs set out last December. Ouch.