Bitcoin (BTC) saw a sharp decline in yesterday’s trading, dropping 4.8% to $96,900 after briefly reaching $101,000. The market had high expectations for White House advisor David Sacks’ press conference, hoping for clarity on Bitcoin’s role in strategic reserves. However, the event was dominated by regulatory discussions, leaving crypto investors uncertain.

Regulatory Concerns Overshadow Bitcoin’s Strategic Role

Crypto enthusiasts were eager to hear whether the U.S. government would integrate Bitcoin into its Sovereign Wealth Fund (SWF) or establish Bitcoin reserves. Instead, Sacks made only a brief mention of the topic, stating that a White House task force is evaluating the idea but providing no concrete updates.

When asked about Bitcoin’s connection to the SWF, Sacks deferred the discussion to Howard Lutnick, the Commerce Secretary nominee, and Treasury Secretary Scott Bassett. This lack of clarity increased uncertainty, triggering sell pressure in the market.

Crypto Market Sell-Off

Following the press conference, Bitcoin dropped nearly $5,000 in just two hours, falling below the crucial $97,000 level. The sell-off extended to altcoins, with some experiencing even steeper declines:

• Ethereum (ETH) fell 5.3%
• Solana (SOL), Cardano (ADA), Ripple (XRP), and Chainlink (LINK) dropped between 6% and 10%

The decline highlights how sensitive crypto markets are to regulatory uncertainty, especially when investors anticipate bullish government involvement but receive little clarity.

Read More: Blockchain in US Government: Transparency and Efficiency

Short-Term Price Outlook: Retesting $92K?

With Bitcoin now trading below $97,000, the next major support level is $92,000, which was last tested on Sunday. Analysts point to two key factors that could determine BTC’s next move:

• Weaker U.S. jobs data could be bullish for Bitcoin. If Friday’s report signals an economic slowdown, markets may anticipate potential interest rate cuts, boosting Bitcoin and other risk assets.
• Stronger U.S. jobs data could be bearish for Bitcoin. If the report indicates a strong job market, concerns about higher interest rates may return, pressuring financial markets, including crypto.

Final Thoughts: Uncertainty Looms Over Next Move

While the market expected clarity on Bitcoin’s role in U.S. reserves, the lack of meaningful updates from the White House left investors with more questions than answers. The next few days—especially Friday’s jobs report—will be critical in determining whether rebounds or extends its decline toward $92,000.

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