Recently, the cryptocurrency market has been sluggish. Investors initially hoped that the White House cryptocurrency summit on March 7 would bring concrete policy benefits. Additionally, former U.S. President Donald Trump named Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA) last week, which briefly drove prices up due to market expectations. However, the summit ultimately lacked critical details, resulting in a lackluster market response, with Bitcoin’s price retreating to $78,706, and the named altcoins also experiencing varying degrees of decline, eroding previous gains.
The White House cryptocurrency summit was originally seen as a pivotal moment 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 live broadcast, Trump mainly reiterated the contents of his executive order, emphasizing an end to the government’s anti-cryptocurrency stance but failing to provide more specific measures. The only new content involved the legislative process for stablecoins, but the details remain unclear, leading to unmet expectations for further policy specifics. This caused Bitcoin’s price to drop, resulting in capital outflows from the market and a general decline in risk assets.
Table of Contents
- Commitments of Strategic Reserves and Market Doubts
- Impact on Bitcoin, Ethereum, and Dogecoin Prices
- The Next Steps for the Market: Inflation Data and Fed Decisions
- Short-Term Outlook and Long-Term Trends
- About BingX
Commitments of Strategic Reserves and Market Doubts
The Trump administration’s strategic cryptocurrency reserve plan is seen as the first clear acknowledgment by the U.S. of the strategic value of Bitcoin and other mainstream cryptocurrencies. However, BitMEX co-founder Arthur Hayes pointed out that the plan lacks substantial support, arguing that the current financial situation of the U.S. government cannot sustain large-scale cryptocurrency reserves, and there remains uncertainty regarding the implementation of the policy.
The U.S. government currently faces fiscal deficits, inflationary pressures, and a high-interest-rate environment, raising concerns about whether there are sufficient funds and determination to promote the cryptocurrency reserve plan. 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. Market optimism regarding the plan before the summit led to Bitcoin price projections briefly exceeding $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 the policy expectation rally, reaching a peak price of $91,233 on the day of the summit, but by the time of this report, it had fallen to $78,706, down 13.73%, with a low of $76,606, indicating increased market volatility. The main concern in the market is whether the policy’s execution will be sufficient to sustain rising price projections for Bitcoin.
Although Ethereum rose to $2,516 due to the strategic reserves impact, the lack of more regulatory details from the summit led to a subsequent price drop. Currently, Ethereum is priced at $1,845.45, having peaked at $2,258.47 on the summit day, reflecting an 18.29% decline.
Meanwhile, the well-established meme coin Dogecoin (DOGE), although not included in the strategic reserves, continues to be influenced by overall market sentiment and has not escaped volatility in the short term. Dogecoin’s price movements have historically been driven by retail and community sentiments, but recent overall market sentiment has been relatively low, coupled with Elon Musk’s lack of clear support, preventing Dogecoin from exhibiting strong upward momentum.
The Next Steps for the Market: Inflation Data and Fed Decisions
Beyond policy factors, upcoming inflation data such as the Consumer Price Index (CPI) and Producer Price Index (PPI) in the U.S. will significantly impact the cryptocurrency market. If the data indicates a cooling of inflation, it may increase the likelihood of the Federal Reserve (Fed) lowering interest rates during its meeting on March 18-19, thereby boosting the cryptocurrency market. However, if the data shows persistent inflation, the Fed may maintain its high-interest-rate policy, putting pressure on risk assets.
Historically, non-farm payroll data has also been an important reference indicator for the market. In January of this year, non-farm payrolls added 353,000 jobs, far exceeding market expectations, indicating that the U.S. labor market remains strong. If the March employment data continues to be robust, the Fed may be inclined to delay rate cuts, further impacting the 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 intensify or Fed policies are not as accommodative as expected, cryptocurrency prices may remain volatile.
In the long term, if the Trump administration’s crypto-friendly stance can continue, it may bring more institutional capital into the market, potentially leading to increased price projections for Bitcoin and Ethereum. However, the market must remain vigilant regarding regulatory agency movements, especially concerning potential risks for specific cryptocurrencies like XRP, SOL, and ADA.
About BingX
BingX was established in 2018 and is a leading cryptocurrency exchange globally, 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 for mainstream coins like Bitcoin and historical price analyses for Ethereum, catering to the varying needs of beginners and professionals. BingX is committed to providing a reliable platform, empowering users with innovative tools and features to enhance their trading capabilities. In 2024, BingX proudly became the main partner of Chelsea Football Club, marking its first exciting appearance in the sports world.
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