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Read expert analysis on what could drive XRP to new highs here.
Bitcoin Slides to $80K as Risk Sentiment Sours
On March 7, BTC tested buyer demand at $80k for the first time in nine sessions. President Trump’s SBR Executive Order fell short of market expectations, weighing on BTC demand.
Markets had anticipated a significant BTC purchase to add to its 198,109 BTC stockpile. However, Trump’s Executive Order (EO) only tasked the US Treasury Department and Commerce Department to develop budget-neutral BTC acquisition strategies.
The EO contrasted with prior speculation that the Trump administration would acquire 500k BTC soon after Trump’s inauguration. In January, Anthony Scaramucci speculated:
“They’ll probably buy another four or five hundred thousand BTC. Let me tell you why I think it will happen ok. Trump wants it to happen and he’s got the Senate Banking Committee. Tim Scott wants it to happen. He’s going to be the chair of the Senate Banking Committee. Bessent wants it to happen.”
Trump’s silence on BTC acquisition plans, combined with growing risk aversion, fueled US BTC-spot ETF outflows, further pressuring BTC demand.
Senator Lummis’ Bitcoin Act Crucial for BTC Demand
While Trump’s EO disappointed markets, Senator Cynthia Lummis’ Bitcoin Act could change the narrative. The bill proposes that the US government purchase one million BTC over five years with a 20-year mandatory holding period. If Congress passes the act, BTC’s supply-demand balance could shift significantly, potentially driving prices to new highs.
On March 7, Senator Lummis commented on President Trump’s call for Congress to get digital asset legislation on his desk before the August recess, stating:
“We are on it, Mr. President! We must secure America’s financial future.”
Bitcoin Price Scenarios: Key Levels to Watch
On March 9, BTC tumbled 6.41%, following Saturday’s 0.59% loss, closing at $80,736. Trump’s Executive Order, tariff policies, and recession fears triggered BTC-spot ETF outflows. These pressured BTC’s supply-demand balance.
Potential price scenarios:
- Bearish: Trade tensions rise, opposition to the Bitcoin Act, and accelerating BTC-spot ETF outflows could drag BTC below the February 28 low of $78,174.
- Bullish: Easing trade tensions, lawmakers support the Bitcoin Act, and ETF inflows, could drive BTC toward $109,312.
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