The crypto market has been having a hard time lately despite a pro-crypto Trump taking the Oval Office. What happened, and why did BTC price fail to reach new heights?
The Bitcoin Rollercoaster
Over the past two weeks, Bitcoin has experienced significant volatility, with its value even dropping below $80K once at the very end of February. BTC price kept fluctuating in the $80-90K range at the beginning of March, sharply reacting to every small change in the market. As of today, March 10, Bitcoin is trading at approximately $82K—a sharp drop from the $100K highs we’ve been celebrating not that long ago.
So what happened, and why did BTC drop despite a pro-crypto president taking the Oval Office? Several factors have contributed to Bitcoin’s recent fluctuations:
- Market Volatility and Liquidations. The cryptocurrency market has seen heightened volatility, leading to significant liquidations. In just 24 hours, approximately $616 million in positions were liquidated, with long positions bearing the majority of the losses.
- U.S. Economic Policies. President Donald Trump’s recent comments about potential economic challenges and the implementation of tariffs have added to market uncertainty. These developments have influenced investor sentiment, leading to cautious trading in both traditional and cryptocurrency markets.
- Federal Reserve’s Stance. Speculations regarding the Federal Reserve’s monetary policy, particularly the possibility of maintaining current interest rates throughout 2025, have impacted risk assets, including cryptocurrencies. Analysts warn that the absence of anticipated rate cuts could serve as a trigger for a bear market in the crypto space.
- Disappointment Over U.S. Bitcoin Strategy. Despite Trump’s pro-Bitcoin stance, many investors were hoping for more aggressive government action in favor of BTC, such as large-scale federal purchases. Instead, Trump’s Strategic Bitcoin Reserve plan focuses on managing already-seized Bitcoin rather than acquiring new assets. Additionally, there have been more and more voices expressing concern over increased government involvement in the crypto market.
Analysts are closely monitoring key support and resistance levels for Bitcoin. The $80,000 mark is considered a critical support level; a breach below this could lead to further declines. Crypto veteran and former BitMEX CEO Arthur Hayes recently warned that Bitcoin’s price could experience continued volatility, even suggesting that BTC could retest the $78,000 range.
Conversely, reclaiming and sustaining levels above $85,000 could signal potential recovery. Investors are advised to exercise caution and employ risk management strategies, such as setting stop-loss orders, to navigate the current market volatility.
Trump’s SEC Makes Its First Moves: Is It a Win For Crypto?
Trump’s actions and policies have been one of the key factors driving Bitcoin price in these past two months. Let’s take a closer look at his most recent developments and see what they mean for the crypto industry and investors.
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One of the biggest shocks to the industry came when the SEC dropped its lawsuit against Kraken, one of the longest-running crypto exchanges in the U.S. This lawsuit had originally accused Kraken of offering unregistered securities and failing to comply with regulatory requirements. Now, without any fines or settlements, the case has simply been dismissed. Industry experts see this as a clear signal that the regulatory pressure exerted on crypto firms over the last few years is starting to ease.
Similarly, the SEC has discontinued important legal proceedings against Coinbase, which had been one of the most high-profile regulatory battles in the space. Coinbase had been fighting the SEC’s claims that certain digital assets on its platform constituted unregistered securities. The lawsuit’s dismissal is a major win for the crypto sector, as it indicates a retreat from the “regulation by enforcement” approach that characterized the SEC’s stance under former Chairman Gary Gensler.
The SEC has also made a notable clarification regarding meme coins and speculative digital assets. According to a recent statement from the SEC’s Division of Corporation Finance, meme coins—digital assets inspired by internet trends and social media—are not considered securities under federal securities laws. This means that transactions involving these tokens do not require registration with the SEC, providing some relief to projects operating in this space.
One of the biggest drivers behind these changes is the new administration’s pro-crypto stance. The Trump White House has actively engaged with crypto industry leaders, holding a series of private meetings and public summits to discuss digital assets’ role in the U.S. economy.
At the latest White House Crypto Summit, industry executives met with senior policymakers to discuss issues ranging from stablecoin regulations to integrating crypto into traditional finance. The tone of these discussions has been strikingly different from previous years—rather than viewing crypto as a risky sector in need of heavy regulation,policy makers now see it as a strategic industry with global economic implications.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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