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Bitcoin Plunges After Sacks' Press Conference

Coin WorldThursday, Feb 6, 2025 2:05 pm ET

1min read

Bitcoin's price plummeted to $96,400 on Wednesday, following a press conference by David Sacks, the former CEO of PayPal and a key advisor to former President Donald Trump on cryptocurrency and artificial intelligence. The conference, which was highly anticipated by the crypto community, failed to deliver any significant news about Bitcoin or other cryptocurrencies, leading to a sharp drop in the price of the world's largest cryptocurrency.

Sacks, who is often referred to as Trump's "crypto czar," focused primarily on stablecoin legislation during the press conference, barely mentioning Bitcoin and not commenting on any other cryptocurrency. This lack of attention to Bitcoin, combined with the absence of any newsworthy announcements, led to a sell-off in the crypto market, with Bitcoin's price falling from around $102,000 on Tuesday to $97,300 at the time of the press conference, and eventually to $96,400 on Wednesday.

Despite the recent price drop, some analysts remain optimistic about Bitcoin's long-term prospects. Smart money investors are expecting choppy price action in the coming weeks, with the possibility of another dip to $91,200. However, they also believe that Bitcoin could still see double-digit appreciation in February, as it has historically done.

Sacks' press conference was not entirely devoid of positive news for the crypto market. Ripple CEO Brad Garlinghouse highlighted the fact that the chairs of several key committees in the US Senate and House of Representatives joined the "Crypto Czar" as a bullish sign for the crypto industry. Additionally, Sacks revealed that the Trump administration is serious about creating a Strategic Bitcoin Reserve, which could be incredibly bullish for BTC and the crypto market. Finally, Sacks stated that the administration's priority is to pass pro-crypto legislation that would provide regulatory clarity regarding stablecoins.

Prominent analyst James Van Straten believes that the stablecoin supply will be highly inflated during the Trump administration, which would result in soaring BTC prices, considering the strong correlation between the two. This inflation of stablecoins could lead to a decrease in US yields and the spread of digital dollar dominance.

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