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Hopes that crypto czar David Sacks would make strong statements did not materialize, and the market continued its positioning.
David Sacks, head of artificial intelligence and cryptocurrencies for Donald Trump's administration, stated in an interview yesterday that Bitcoin was an excellent store of value. According to Sacks, Bitcoin is the first digital currency to land in a wallet. It is the original and strongest digital asset. It has existed for more than a dozen years, and no one has ever hacked it.
Earlier, during a press conference, Sacks outlined Trump's crypto agenda. He emphasized that assessing Bitcoin's potential as a reserve asset was one of the top priorities for the administration's internal working group.
Sacks noted that a national strategic Bitcoin reserve was just one of the many pro-crypto policies supported by Donald Trump.
It is also worth mentioning that Trump has backed clearer cryptocurrency regulations, signing an executive order to establish a crypto task force that will develop new rules for digital assets.
In the interview, Sacks said that he was at Capitol Hill meeting with the leaders of House and Senate banking and finance committees. They were determined to push a bill through Congress this year. This could provide the regulatory clarity the digital asset ecosystem needs to support innovation in the US. He also added that this could happen within the next six months.
The newly created crypto task force is currently working on defining which cryptocurrencies should be classified as securities. This issue had been delayed due to the SEC's enforcement-first approach under former chairman Gary Gensler. Earlier today, The New York Times reported that the SEC plans to scale down its crypto enforcement division, reassigning some of its lawyers to other areas of the agency.
Sacks also mentioned that the administration aims to relocate stablecoin innovation to the US, as most of it currently takes place abroad.
Stablecoins have "the opportunity to extend the dollar's dominance internationally," distribute it in a digital format, and potentially create trillions of dollars in new demand for US Treasury bonds, Sacks stated.
However, as mentioned earlier, these statements failed to impress investors and traders, who were expecting more concrete details regarding the creation of a US crypto reserve fund. Without it, the digital asset market does not seem ready to move forward.
As for the BTC technical outlook, buyers are currently aiming to reclaim the $98,200 level, which would open a direct path to $99,500, and from there, it is just a step away from $101,200. The long-term target is the high of $102,600. Breaking above this level would signal a return to a medium-term bullish market.
In case of a decline, buyers are expected around $96,500. A drop below this level could quickly push BTC down to $95,000, with $93,200 as the next key support. The final downside target would be $91,900.
In case of Ethereum, a clear breakout above $2,787 would pave the way to $2,843, followed by $2,889. The long-term target is the $2,944 yearly high. A breakout of this level would confirm a return to a medium-term bullish market. In the event of a correction, buyers are expected around $2,733. A move below this level could send ETH down to $2,665, with $2,609 as the final downside target.
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