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Read expert analysis on what could drive XRP to new highs here.
Bitcoin Drop Below $85k Amid Tariff Uncertainties and Recession Jitters
On March 7, BTC fell below $85k as investors reacted to the US Jobs Report, which signaled higher unemployment. While a weak labor market could support bets on multiple 2025 Fed rate cuts, it also raised fears about a US recession.
After the US Jobs Report, BTC briefly climbed to a March 7 high of $91.148 before sliding to the $85k level. A weaker labor market may impact wage growth, consumer confidence, and spending. Contributing over 60% to US GDP, a pullback in spending could affect the economy.
Trump Greenlit the US Strategic Bitcoin Reserve
The Executive Order, titled the Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile, states the Treasury Secretary must:
- Create an office to control BTC holdings held by the Treasury Department as part of criminal or civil asset forfeiture proceedings.
- Establish an office to control custodial accounts known as the United States Digital Asset Stockpile, comprising all digital assets (except BTC), held by the Treasury Department as part of criminal or civil asset forfeiture proceedings.
- Develop budget-neutral BTC acquisition strategies with the Secretary of Commerce that do not burden US taxpayers.
John E. Deaton voiced surprise at the market’s reaction:
“I’m surprised BTC isn’t $120K already.”
Meanwhile, US Treasury Secretary Scott Bessent could push for the Bitcoin Act. Senator Cynthia Lummis, absent from the Crypto Summit due to illness, introduced the Bitcoin Act after Trump’s election win. The bill proposes the US government acquire one million BTC over five years, with a 20-year holding period. The Bitcoin Act could shift the supply-demand balance significantly in BTC’s favor.
Bitcoin Price Scenarios: Key Levels to Watch
On March 7, BTC slid by 3.53%, following Thursday’s 0.75% loss, closing at $86,782. US labor market data, tariff policies, and recession fears fueled US BTC-spot ETF market outflows, pressuring BTC.
Potential price scenarios:
- Bearish: Trade tensions rise, lawmakers oppose the Strategic BTC Reserve, and BTC-spot ETF outflows accelerate, pushing BTC toward $80K.
- Bullish: Trade tensions ease, lawmakers support the reserve, and ETF inflows grow, driving BTC toward $109,312.
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