What Was the Main Reason for the Decline in Bitcoin? What do experts expect in the coming days?

The cryptocurrency market has come under severe selling pressure as investors reacted to the highly anticipated White House crypto summit.

Bitcoin, the world's largest cryptocurrency, fell below $80,000 for the second time in three weeks, falling to a level not seen since ahead of the U.S. elections in November.

The instability in the market comes after President Donald Trump's executive order last Friday establishing a strategic Bitcoin reserve and digital asset stockpile. In addition, Trump has vowed to sign stablecoin legislation before August and end the practice of de-mining the banking industry. While the announcement initially sparked optimism among some investors, skepticism soon set in as details of the venture emerged.

"Donald Trump's highly anticipated crypto summit was exemplary practice in public relations," said Kai Warwzinek, co-founder of Impossible Cloud Network, adding: "While the U.S. President promised a major shift for crypto, he delivered almost nothing."

The executive order mandates a full accounting of federal digital asset holdings and stipulates that the U.S. will not (BTC) sell any Bitcoin deposited in reserve. Instead, these assets will be treated as a store of value, similar to the digital Fort Knox. In addition, the U.S. Digital Asset Stock will consist of non-Bitcoin digital assets that have been seized in criminal or civil proceedings, with no plans to acquire additional assets beyond those obtained through seizures.

The U.S. government currently holds 198,109 BTC, worth around $16 billion.

However, concerns about the implementation of the plan are keeping investors cautious. Marion Laboure of Deutsche Bank said, "If Trump's Bitcoin reserve plan lacks clear details, the volatility of cryptocurrencies could remain high," adding: "Time, money and allocation are uncertain. The market is cautious; If the plan progresses, it focuses on profits, and if it stops, it prepares for losses."

Annualized Bitcoin volatility rose to 62.67% as of March 9, reaching its highest level in three months. Analysts attribute this to a mismatch between market expectations and the reality of Trump's crypto initiative.

"The current crypto sell-off reveals a mismatch between expectations and reality," said Nic Puckrin, founder of The Coin Bureau and a financial analyst, adding: "Investors had unrealistic expectations for the crypto reserve and were disappointed when the details emerged."

Puckrin also noted that the Trump administration continues to focus primarily on long-term interest rates and the budget deficit, meaning spending cuts and tariffs are likely to continue.

"In the short term, this could be painful for risk assets, but 10-year Treasury yields are falling very quickly," he said, adding, "In the long run, this is much more important for Trump and his voters because it means that interest rates will come down and the U.S. can finally get out of debt."

Despite the short-term turbulence, some experts believe that the evolving regulatory environment and deeper integration with traditional finance could ultimately strengthen the cryptocurrency sector.

"The improving regulatory environment and the promise of integration with traditional finance rails will reinforce the important role of cryptocurrencies in the U.S. financial landscape," Puckrin said.