Bitcoin (BTC) Rally From Weekend's Tariff-Induced Panic Proves Short-Lived

Late in the U.S. trading day, bitcoin was down 4.8% over the past 24 hours to $96,900 after having climbed up to the $101,000 level just two hours earlier.

Bitcoin (BTC) and other major cryptocurrencies took a downturn on Wednesday evening following a day of relative calm in the markets.

The price of bitcoin was last down 4.8% over the past 24 hours to $96,900, according to CoinDesk. Earlier in the day, BTC had risen as high as $101,000 on some exchanges.

Most of the altcoins in the top 10 by market capitalization saw steeper losses. Solana (SOL) fell 6.3%, XRP dropped 7.2%, cardano (ADA) declined 8.2% and chainlink (LINK) was trading 10.1% lower.

The downturn began to pick up steam around the time of a crypto press conference, which was held by White House crypto and AI czar David Sacks, together with the heads of key committees in the Senate and House.

Ahead of the press conference, there were hopes that it would touch on the possibility of a strategic bitcoin reserve. However, the discussion centered nearly entirely on regulatory matters and included broad statements of support for crypto innovation.

Bitcoin was mentioned briefly toward the end of the press conference, when Sacks said, in response to a question, that a White House working group on crypto is currently examining the feasibility of a strategic bitcoin reserve.

When asked if Tuesday’s executive order on the creation of a sovereign wealth fund had any implications for bitcoin, Sacks said that question would be better directed at nominee for Commerce Secretary, Howard Lutnick (who, together with Treasury Secretary Scott Bessent, will be leading the creation of the SWF).

For now, it appears that bitcoin could be setting up for a retest of its Sunday evening low beneath the $92,000 level.

Looking ahead, traders will be watching Friday’s U.S. employment report for January, which could have bullish or bearish implications for bitcoin’s price.

If the employment numbers come in weaker than expected, it could lead to market participants pricing Federal Reserve rate cuts back into the outlook, which may bode well for bitcoin.

However, if the employment numbers are strong, it might lead to investors pricing in a rate hike at some point this year, which – absent other countervailing forces – could be bearish for bitcoin.