Why is Bitcoin Down Despite David Sacks’ Pro-Crypto Conference?

Bitcoin’s price dropped by up to 6% after David Sacks’ highly anticipated press conference on Feb. 4, 2025. The event focused on U.S. President Donald Trump’s administration’s approach to digital assets, with traders anticipating strong bullish catalysts.

The cryptocurrency failed to hold key support levels. Before the conference, BTC/USD struggled to stay above $105,000, repeatedly facing resistance. Once it dropped below the 50-day and 200-day Exponential Moving Averages (EMAs), currently at $100,614 and $100,347,

However, the lack of immediate policy changes or groundbreaking announcements disappointed them, leading to a sell-off.

David Sacks Disappoints Bullish Bitcoin Traders — Will Elon Musk Spoil Crypto Demand?

Traders expected definitive steps, such as formally including Bitcoin in U.S. reserves or major tax reforms favoring digital assets. But they were left disappointed.

For instance, Sacks confirmed that the sovereign wealth fund is unrelated to the Bitcoin reserve, dashing hopes of a direct institutional allocation into BTC. Furthermore, while officials stated they would explore the viability of a Bitcoin Strategic Reserve, market analysts interpreted this as political rhetoric rather than a firm commitment.

Additionally, the U.S. government reinforced its vested interest in expanding stablecoin adoption worldwide, positioning USD-backed digital assets as a superior alternative. Officials emphasized that stablecoins could create trillions of dollars in demand for USD and U.S. Treasuries, strengthening the dollar’s global dominance rather than promoting Bitcoin as an alternative store of value.

“Elon Musk stated the plan is to cut $4b a day from the federal budget, the Trump admin wants to get out of entrepreneur’s hair with permitting to grow the economy and have stated a goal of zero inflation by EOY 2025,” said TCB, an independent market analyst, adding:

“What’s the point of holding the inflation hedge asset if there’s no inflation?”

The absence of a clear timeline for execution further disappointed market participants, many of whom had priced in the expectation of policy shifts that would provide a direct boost to Bitcoin’s valuation.

Speculators, who thrive on short-term catalysts, quickly reacted to the uncertainty by offloading their holdings, contributing to Bitcoin’s sudden downturn.

The supply of leading stablecoin, Tether (USDT), across all crypto exchanges rose to a fresh record high of 42.445 billion on Feb. 4.

This spike indicates that traders moved capital into stablecoins, likely waiting for clearer signals before reinvesting in Bitcoin. Such rotation suggests a defensive stance, where investors prioritize liquidity over exposure to potential short-term downside.

What’s Next for Bitcoin?

The latest chart analysis shows BTC oscillating between the $92,000 support level and the $108,000 resistance, highlighting the market’s cautious stance amid ongoing macroeconomic uncertainties.

Currently, Bitcoin is hovering around $97,845, attempting to hold above the 50-day Exponential Moving Average (EMA) at $98,804.

If Bitcoin breaks above $108,000, it could trigger a fresh leg up, with potential upside targets extending beyond $110,000–$115,000. Conversely, a breakdown below $92,000 might expose BTC to further declines, with $85,000–$87,000 emerging as possible support levels.