This week has been a whirlwind for the cryptocurrency market, marked by significant declines across major altcoins, except for Bitcoin Cash (BCH), which defied the trend with a 15% surge. Notable weekly losses include Solana (-23%), Litecoin (-22%), Avalanche (-20%), Dogecoin (-19%), Stellar (-18%), and Ripple (-17%).
Trump’s Crypto Strategy Shakes the Market
The Bitcoin price experienced dramatic fluctuations, briefly approaching $95,000 following remarks from U.S. President Donald Trump. Through his social media platform, Truth Social, Trump announced plans to establish a Strategic Cryptocurrency Reserve. The proposed reserve would include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA), fueling a temporary rally in these assets.
However, market sentiment shifted when Trump formalized the initiative through an executive order. Contrary to speculation, the reserve will be funded with Bitcoin assets already seized by the U.S. government rather than new acquisitions. This clarification dampened investor expectations, leading to a sharp Bitcoin correction down to $85,000 before a partial recovery.
The White House Hosts Its First Crypto Summit
Today, March 7, 2025, the White House is hosting its inaugural "Crypto Summit," bringing together top industry leaders, regulators, and policymakers. The event, spearheaded by Trump’s administration, aims to shape regulatory policies, discuss stablecoin oversight, and explore Bitcoin’s potential role in the U.S. financial system.
Key figures in attendance include prominent cryptocurrency CEOs, institutional investors, and members of the Presidential Task Force on Digital Assets. The summit will be chaired by David Sacks, the White House’s designated AI and Crypto Advisor, alongside Bo Hines, the Executive Director of the Task Force.
The U.S. government’s proactive stance on digital assets signals an effort to establish itself as a global leader in the sector. However, the initiative has also sparked debate regarding long-term regulatory implications.
Market Volatility Expected to Continue
Given the weight of these discussions, market volatility is likely to persist, with traders closely monitoring announcements from the summit.
Despite the turbulence, Ripple (XRP) has emerged as the top-performing major cryptocurrency in 2025, recording a 17% annual gain. In contrast, major losers this year include Avalanche (-45%), Shiba Inu (-39%), Dogecoin (-39%), and Ethereum (-37%).
Macroeconomic Factors Impacting Crypto Markets
Beyond crypto, economic developments have influenced market movements:
- Eurozone Inflation: February’s inflation rate came in at 2.4%, slightly above the 2.3% forecast.
- Producer Price Index (PPI): January’s PPI increased by 1.8% year-on-year, exceeding the expected 1.4%.
- European Central Bank (ECB) Interest Rate Cut: The ECB lowered its key interest rate by 25 basis points, bringing deposit rates to 2.5% and lending rates to 2.65%.
- U.S. Jobs Report: Later today, February’s employment report is set for release, with economists projecting 142,000 new jobs.
Traditional Markets Overview
- U.S. 10-Year Treasury Yield: This week, yields ranged between 4.25% and 4.3%, closing at the lower end.
- Gold (PAXG): After rebounding above $2,900 per ounce, gold eyes its next resistance at $2,950.
- Oil Prices: Crude oil remains below $70 per barrel, closing near $67, easing inflationary pressures.
- Euro Surge: The euro outperformed the U.S. dollar, rising above $1.085. This rally is attributed to a massive €800 billion European defense fund, ECB policy signals, and new tariffs affecting U.S. imports.
Looking Ahead
With the crypto market at a crossroads, all eyes remain on the outcomes of the White House Crypto Summit. As regulatory clarity unfolds, investors must brace for continued price swings in the short term. Will Bitcoin regain its momentum, or are we in for further corrections? Stay tuned for more updates!
