Trump’s First Crypto Summit Fails to Excite Bitcoin Bulls

On March 7, U.S. President Donald Trump hosted a highly anticipated White House Crypto Summit, bringing together industry leaders to discuss his vision for a strategic cryptocurrency reserve.

The event, billed as a landmark moment for digital assets, followed Trump’s executive order to establish a “Strategic Bitcoin Reserve” using approximately 200,000 BTC already seized by the federal government.

However, rather than igniting a sustained rally, the summit left markets underwhelmed, with Bitcoin and Ether experiencing notable declines in the hours that followed.

Bitcoin, Ethereum Fall After Trump’s “Right or Not” Remark Toward Crypto

Bitcoin, the flagship cryptocurrency, fell to around $86,000 shortly after the event, down roughly 5% from its pre-summit level of approximately $90,000. Ether, the second-largest cryptocurrency by market cap, saw a steeper drop, declining nearly 16% from its Sunday peak of $2,409 to $2,127.10.

The initial excitement surrounding Trump’s pro-crypto stance—fueled by his campaign promise to make the U.S. the “crypto capital of the world”—had driven a brief surge earlier in the week.

Bitcoin spiked 8% and Ether 11% on March 2 after Trump announced plans to include Bitcoin, Ether, XRP, Solana, and Cardano in the reserve. Yet, the summit’s lack of concrete details triggered a swift reversal.

Analysts point to several factors behind the sell-off. Trump’s order emphasized a “never sell” policy for the government’s Bitcoin holdings, framing it as a “digital Fort Knox.”

However, his offhand remark—”I don’t know if that’s right or not”—introduced uncertainty, shaking investor confidence. Moreover, the absence of a clear plan to purchase additional tokens disappointed those expecting aggressive government buying to boost prices.

The broader market context didn’t help. Trump’s recent tariff threats against major trading partners have rattled financial markets, amplifying risk-off sentiment.

Bitcoin, often touted as “digital gold,” has shown resilience compared to altcoins like Ether, but it’s not immune to macro pressures. Since hitting $105,000 in January, Bitcoin has shed over a third of its value, with February marking its worst month since June 2022.

Bitcoin, Ethereum On-Chain Metrics Offer Glimmer of Hope

CryptoQuant data shows 6,739 Bitcoin and 300,000 Ether flowed into exchanges hourly as short-term holders sold off.

The Spent Output Age Bands chart highlights that these sell-offs were driven by investors holding Bitcoin for 1 week to 6 months, indicating panic selling and profit-taking.

In contrast, long-term holders (over 6 months) showed restraint, engaging in gradual profit-taking—a sign of confidence in future price increases. This reduced selling pressure from long-term holders could shrink supply, potentially driving prices higher if demand rises.

Meanwhile, whale activity offers a glimmer of hope. After over a month of net decline—the longest in the past year—whales have begun accumulating Bitcoin again, with the 30-day percentage change turning positive.

Historically, such shifts often precede bullish momentum, suggesting a possible recovery if the trend continues.

Ether’s market dynamics also reveal accumulation signals. Over 400,000 Ethereum were withdrawn from the Kraken exchange, as shown in the netflow chart.

Such significant outflows typically indicate whale or institutional accumulation, with funds likely moved to cold storage. Historically, these events reduce selling pressure and often signal bullish sentiment, which could support Ether’s recovery despite its recent drop.

Bitcoin’s Bear Trap Fractal Signals Potential Push to $110,000

Bitcoin’s recurring “bear trap” fractal pattern on its weekly chart suggests a potential climb toward the $100,000–$110,000 range, as highlighted below in the chart by analyst CryptoCaesarTA.

The chart, which tracks Bitcoin’s price movement from mid-2024 through early 2025, highlights a series of bear traps that have consistently trapped sellers. These traps fuel a bullish trend that has already pushed the price to $88,128.10 as of March 7, 2025.

The analysis identifies three bear traps, each marking a false breakdown followed by a strong bullish reversal.

The first trap occurred around the $40,000–$45,000 level in late 2024. A brief decline triggered bearish sentiment, only for the price to reverse sharply upward.

A second trap followed at the $50,000–$55,000 range, accompanied by a “Change of Character” (CHoCH) signal, indicating a shift in market structure toward a bullish trend.

The most recent trap, labeled Bear Trap 4, occurred near the $70,000–$78,000 zone, where Bitcoin dipped but quickly rebounded, trapping sellers anticipating a deeper correction. Analysts note that this pattern forms a fractal—a repeating structure that scales across price levels—reinforcing the strength of the ongoing uptrend.

Adding to the bullish narrative, the chart shows a Weekly RSI (Relative Strength Index) breakout, with the indicator climbing above the 60 level earlier in the trend.

As of the latest data, the RSI stands at 65.12, edging into overbought territory, which typically signals strong momentum but also raises the possibility of a pullback.

The RSI’s earlier breakout, circled on the chart, has fueled optimism, though a question mark over a potential new breakout suggests uncertainty as Bitcoin approaches higher resistance levels.