Bitcoin and Altcoins Plunge as Market Disappointed by Sachs' Press Conference

Virtual assets weakened as more principled contents related to "regulatory clarity" were mentioned than those related to Bitcoin strategic reserves that the market expected.

Virtual assets fell sharply on the 5th as the market was disappointed by the first press conference of David Sachs, a special advisor on virtual assets and artificial intelligence (AI).

According to CoinMarketCap on the 5th, Bitcoin was trading at $97,825.53, down 3.55% from 24 hours ago as of 11 a.m. on the day.

At one point, Bitcoin fell to $96208.11.

Altcoins also weakened all at once on the same day.

Ethereum is trading down 4.27% at $2727.37, while Ripple and Solana are down 8.59% and 5.66% at $2.52 and $206.12, respectively.

The mayor paid attention to a press conference held on the 4th (local time) by Special Adviser Sachs.

However, virtual assets weakened as more principled contents related to "regulatory clarity" were mentioned than those related to Bitcoin strategic reserves that the market expected.

In fact, Bitcoin regained the $100,000 level just before the press conference began, raising expectations, but it fell to the $96,000 level after the press conference.

At a press conference, Special Adviser Sachs said, "Only by taking virtual asset innovation 'in the United States' can regulators manage it and contribute to national economic growth."

Special advisor Sachs also stressed the importance of stablecoins.

"Stablecoins are important in maintaining dollar hegemony," he said. "The demand for U.S. government bonds will increase by trillions of dollars."

The information regarding the Bitcoin Strategic Reserve came from the Q&A.

Regarding the Bitcoin strategic reserve, Sachs said, "The White House working group is investigating the feasibility of the strategic Bitcoin reserve," adding, "However, the sovereign wealth fund is separate."

Meanwhile, the U.S. Securities and Exchange Commission (SEC), one of the regulators, has appointed three more executives to form an organization.

Acting SEC Chairman Mark Uyeda appointed two new executives selected from within the SEC and former policy director of the virtual asset research institute "Coin Center."

In addition, Hester Pearce, the head of the virtual asset task force (TF) newly established within the SEC, suggested the future direction of the TF.

In a press release released through the SEC, TF Chairman Pierce said, "We will clarify the criteria for dividing virtual assets into securities or not," adding, "We will also look into whether virtual asset loans and staking-related businesses should be treated under securities-related laws."

Acting President Uyeda and TF Chairman Pierce have both opposed former SEC Chairman Gary Gensler's move to regulate virtual assets.