David Sacks’ highly-anticipated press conference on Tuesday turned out to be a nothing burger, which sent Bitcoin and the majors tumbling.
Donald Trump’s AI and crypto czar largely focussed on stablecoin legislation, sparsely mentioning Bitcoin and not commenting on any other crypto asset at all.
Unsurprisingly, the Bitcoin price has dipped from $102,000 on Tuesday to $97,300 at press time. Despite Bitcoin typically seeing double-digit appreciation in February, smart money investors are expecting choppy price action in the coming weeks with the possibility of another dip to $91,200.
David Sacks’s Press Conference A Nothing Burger, But It Could Still Be Good For Crypto
Donald Trump created a sovereign wealth fund on Monday, signing an executive order discharging his Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to create an investment arm of the United States.
Immediately after, David Sacks scheduled a press conference for Tuesday, claiming to outline the administration’s vision for digital assets. It resulted in considerable speculation that Sacks could hint at the SWF possibly investing in Bitcoin, which resulted in the price climbing to $102,000.
However, Sacks brushed aside any questions regarding the wealth fund in his press conference, leaving any SWF-related comments to Bessent and Lutnick. Notably, Commerce Secretary Howard Lutnick hasn’t even been approved by the US Senate yet.
This resulted in the Bitcoin price falling below $100,000 on Wednesday.
However, Sacks’ press conference was distinctly pro-crypto. For instance, Ripple CEO Brad Garlinghouse highlighted that the Chair of Senate Banking, the Chair of House Financial Services, the Chair of Senate Ag, and the Chair of House Ag joining the Crypto Czar is incredibly bullish for crypto.
Any criticism of today’s press conference is absolutely missing the forest for the trees. Having the Chair of Senate Banking, the Chair of House Financial Services, the Chair of Senate Ag, and the Chair of House Ag join the Crypto Czar to commit to passing legislation for… https://t.co/wiznRfrPAh
— Brad Garlinghouse (@bgarlinghouse) February 5, 2025
David Sacks also revealed that Donald Trump is serious regarding the creation of a Strategic Bitcoin Reserve, which would be incredibly bullish for BTC and the crypto market. Sacks is currently exploring the idea with other stakeholders.
Finally, Sacks revealed that it was the administration’s priority to pass pro-crypto legislation that would provide regulatory clarity regarding stablecoins.
Prominent analyst James Van Straten reveals that the stablecoin supply will be highly inflated during the Trump administration, which would result in soaring BTC prices, considering the strong correlation between the two.
Well that was obvious, spreading digital dollar dominance through stablecoins.1.Inflate the stablecoin supply. 2. Which in turn inflates the $BTC price and soaks up liquidity without inflating real world assets. 3. US yields will drop. 4. Spreads the digital dollar… https://t.co/tgPjaW3NFO pic.twitter.com/bjJ2Em9Tq3
— James Van Straten (@btcjvs) February 4, 2025
When Will Bitcoin Price Bounce Back?
Prominent crypto analysts believe the Bitcoin price will show choppy price action in the coming weeks.
BTC could retest the $94,000 and $91,200 support levels once again and a breakdown below could pave the way for $85,000.
However, the largest cryptocurrency could bounce back in March, considering the impending weakness in the US Dollar.
Best Crypto To Buy Now?
Bitcoin and large-cap altcoins remain mired in uncertainty. Smart money investors have pivoted to low-cap crypto assets, considering they are showing little correlation with BTC.
For instance, whales are betting big on Solaxy (SOLX), the first prominent Solana layer-2 coin. Behind strong whale and real demand, the SOLX presale has surpassed the $18 million mark.
Solaxy is a high-utility project attempting to tackle a major issue in the Solana ecosystem. Despite Solana’s branding, the blockchain has been struggling with network congestion issues during periods of heavy traffic.
The blockchain saw a considerable percentage of its transactions fail during the TRUMP meme coin mania.
However, Solaxy’s Layer-2 solution could be a game-changer. It is designed to bundle SOL transactions into batches, execute them off-chain and publish the state change on the mainnet.
Unsurprisingly, experts are bullish on SOLX’s upside potential, with many calling it one of the best cryptos to invest in now. Some of the early SOLX buyers are eyeing anywhere between 10x and 100x returns from it.
Visit Solaxy Presale
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