The crypto market has had an intense week, with Bitcoin crashing below $80,000, only to rally back before facing renewed selling pressure. Donald Trump’s announcement of a national crypto reserve triggered a market surge, while the SEC surprisingly dropped its lawsuits against multiple crypto firms, signaling a possible shift in regulation.
Meanwhile, Trump is set to host the first White House Crypto Summit on March 7, bringing together top industry leaders to discuss regulations, stablecoins, and Bitcoin’s role in the U.S. economy.
Let’s break down all the key events shaping the crypto market this week in our weekly crypto news.
Bitcoin and the Crypto Market First Took a Hit
Last week was highly volatile for Bitcoin (BTC) and the entire crypto market. As concerns over a global trade war grew, Bitcoin fell below $90,000 for the first time since November 2024. But things didn’t stop there—U.S. President Donald Trump announced new tariffs, imposing an additional 10% tax on Chinese imports and 25% on goods from the EU. This increased uncertainty in global markets, causing panic among investors. The Crypto Fear & Greed Index dropped into Extreme Fear, prompting many to move their money into safer assets while selling riskier ones like crypto.
On February 28, Bitcoin saw its biggest drop yet, falling another 7% in a single day, crashing below $80,000. With that, by Friday, Bitcoin had lost 18.46% in just one week, marking its worst weekly decline since November 2022. Other cryptocurrencies followed—Ethereum (ETH) dropped 25%, Solana (SOL) and Ripple (XRP) fell 24%, and Dogecoin (DOGE) lost 27%. The total crypto market cap shrank by approximately 17.2%, wiping out over $500 billion in value. Meanwhile, crypto ETFs experienced record outflows, with February’s total reaching $3.3 billion.
For a full breakdown of the drop, its causes, and lessons for beginners, read our in-depth article: “Why Is Crypto Dropping? What Beginners Need to Know.”
A Temporary Recovery Before Another Drop
Things briefly turned very positive on March 2, when Trump announced that the U.S. national crypto reserve would hold ADA, SOL, and XRP alongside BTC and ETH. This long-awaited news triggered an 8% surge in Bitcoin’s price, pushing it to $93,000 within hours. Investors welcomed the development as a sign of increased institutional recognition for crypto beyond just Bitcoin and Ethereum.
However, this optimism was short-lived. On March 3, Bitcoin’s price suddenly plunged 5% in under an hour, erasing half of the previous day’s gains, and continued its downward trend. At the time of writing, Bitcoin is trading at 80,000 €, continuing its downward trend. The primary reason behind this decline was the overly optimistic expectations fueled by Trump’s reserve announcement, which is expected to face bureaucratic hurdles and delays.
Additionally, the 21% surge from Bitcoin’s low of $78,300 on February 28 appeared overextended, especially given the ongoing global tariff war and broader macroeconomic uncertainty. To add to the pressure, China announced plans to retaliate against Trump’s 10% tariffs by targeting U.S. exports, including soybeans and critical minerals like rare earths.
While crypto markets remain highly volatile, the coming days will be crucial in determining whether Bitcoin can stabilize or if further downside is ahead. Despite the sell-off, Bitcoin’s chances of reclaiming the $90,000 support remain strong.
Trump’s National Crypto Reserve: A Long-Awaited Announcement
President Donald Trump had previously pledged to establish a “strategic national Bitcoin stockpile” during the Bitcoin 2024 conference in Nashville, Tennessee. However, after his election, he signed an executive order directing the Working Group on Digital Assets to study the feasibility of a national crypto reserve, rather than immediately creating one. This move was underwhelming for the crypto community, which had hoped for a more decisive action, even though such expectations were not entirely realistic.
On Sunday, March 2, Trump finally made a long-awaited announcement, stating that the U.S. national crypto reserve would not only include BTC and ETH but also SOL, XRP, and ADA. This was a major positive catalyst for the market, as investors had long speculated about broader government recognition of alternative cryptocurrencies.
The market reacted instantly—Bitcoin surged from $85,000 to over $94,000, XRP jumped by over 24%, Solana (SOL) hit $178 after previously dropping to $125, and Cardano (ADA) skyrocketed by 72%. Many altcoins also experienced strong gains as optimism spread.
However, the excitement was short-lived. Investors quickly realized the bureaucratic hurdles involved, including a lengthy approval process and the need for congressional approval. Additionally, there were doubts about whether the plan would involve actual purchases of these cryptocurrencies. As uncertainty grew, prices began to fall again, mainly due to macroeconomic news. However, the announcement about the reserve remains a long-term positive development for the crypto industry.
SEC Drops Lawsuit Against Crypto Firms: A Shift in Regulatory Approach?
The U.S. Securities and Exchange Commission (SEC) has decided to drop its lawsuit against Coinbase. This comes after the SEC also dismissed lawsuits against Consensys, Robinhood, and Gemini, suggesting a shift in its overall strategy.
The SEC explained that this decision will help them “reform and renew” their approach to crypto regulation. This is a major change from the strict enforcement style used under former SEC Chair Gary Gensler, who took legal action against many big crypto companies.
The new acting SEC Chair, Mark Uyeda, admitted that the agency needs a fresh approach, saying, “It’s time for the Commission to fix its approach and create crypto policies in a more transparent way.” Many in the crypto industry see this as a positive step, but it’s still unclear whether this means long-term regulatory improvements or just a temporary shift.
Trump to Host First White House Crypto Summit
President Donald Trump will host the first-ever White House Crypto Summit on March 7, bringing together top industry leaders to discuss regulations, stablecoins, and Bitcoin reserve legislation.
According to an announcement by White House AI and crypto czar David Sacks, the event will include prominent founders, CEOs, and investors from the crypto industry, along with members of the President’s Working Group on Digital Assets.
Trump has previously stated that he wants to make crypto policy a national priority and position the U.S. as a global leader in blockchain innovation. This summit could set the tone for crypto regulations in the next four years, shaping the future of digital assets in the U.S.
This week has been a rollercoaster for the crypto market, with sharp price swings, major regulatory shifts, and long-awaited government announcements. Bitcoin’s wild moves and Trump’s growing involvement in crypto policy are setting the stage for a highly unpredictable March.
The upcoming White House Crypto Summit on March 7 could provide more clarity on regulations, while market volatility remains high due to macroeconomic uncertainty and investor sentiment shifts.
Stay tuned for more updates, and as always, stay informed, stay prepared, and keep learning.
