Bitcoin Price Forecast: BTC expects volatility around White House Crypto summit

• Bitcoin price hovers around $87,600 on Wednesday after finding support around $85,000 the previous day.
• US Bitcoin spot ETFs continued their outflows this week, totaling $217.7 million until Tuesday.
• The upcoming White House Crypto Summit on Friday could bring volatility to BTC.

Bitcoin (BTC) is currently hovering around the $87,600 mark on Wednesday, navigating a landscape of uncertainty as traders brace for potential market-moving events. The inaugural White House Crypto Summit this Friday is casting a long shadow, leaving investors to ponder whether the event will ignite a fresh rally or trigger a significant sell-off. Here’s a breakdown of the key factors driving market volatility and what could unfold in the days ahead.

Key Developments Shaping the Week:

• Bitcoin Price Fluctuation: After dipping to a support level of $85,000 on Tuesday, Bitcoin has rebounded, currently trading at $87,600. This price action reflects the market’s sensitivity to emerging news and sentiment.
• ETF Outflows Indicate Cooling Institutional Interest: U.S. Bitcoin ETFs have experienced substantial outflows of $217.7 million this week. This follows last week’s significant $2.39 billion exit, suggesting a potential wavering in institutional confidence in the cryptocurrency.
• White House Crypto Summit Looms: President Trump’s upcoming “Crypto Strategic Reserve” summit on Friday is injecting both anticipation and anxiety into the market. The summit, led by crypto figure David Sacks, is expected to address regulation and innovation within the crypto space, but the lack of a defined agenda is contributing to market jitters.
• Conflicting Signals: Bullish Buys vs. Weakening Demand: While ETF outflows point to reduced institutional demand, corporate entities like Metaplanet are demonstrating continued bullish sentiment. Metaplanet recently invested $44 million to acquire 497 BTC, contrasting the trend of ETF liquidations.

White House Summit: A Catalyst for Change or Political Spectacle?

The crypto market is keenly focused on President Trump’s “Crypto Strategic Reserve” summit. Following a brief price surge and subsequent correction driven by Trump’s social media activity related to crypto, investors are approaching the summit with caution. The event, convened by David Sacks, aims to bring together industry leaders to discuss the future of crypto regulation and innovation in the United States. However, the absence of a clear agenda for the summit has fueled market speculation and heightened concerns about potential volatility.

David Sacks’ tweet expressing anticipation for the event has further amplified market speculation. The central question remains: will this summit solidify the U.S.’s position as a leader in the crypto industry, or will it prove to be primarily a political gesture? Regardless of the outcome, the market is bracing for potential sharp price swings.

Institutional Demand Wanes: ETF Outflows Paint a Cautious Picture

The initial fervor surrounding institutional investment in Bitcoin appears to be diminishing. Spot Bitcoin ETFs have witnessed $217.7 million in outflows this week, compounding the previous week’s $2.39 billion in exits. Data from CryptoQuant indicates a stagnation in Bitcoin demand growth, marking the first contraction since September 2024. This data suggests that the absence of sustained institutional capital inflow could impede Bitcoin’s upward momentum.

Bullish Counterarguments: Corporate Accumulation and Sovereign Endorsement

Despite the ETF outflows, positive counter-trends are emerging. Japanese firm Metaplanet recently invested $44 million to purchase 497 Bitcoin, increasing its total holdings to 2,888 BTC, valued at $251 million. This significant investment triggered an 18% surge in Metaplanet’s stock, indicating that corporate confidence in Bitcoin remains robust.

El Salvador’s President Nayib Bukele has also reiterated his unwavering support for Bitcoin adoption in his country. He publicly dismissed pressure from the International Monetary Fund (IMF) to abandon Bitcoin in exchange for a $1.4 billion loan, underscoring a continued commitment to cryptocurrency despite international financial pressures.

Bitcoin Price Forecast: $85,000 Support Level in Focus

Bitcoin’s recent rebound from the $85,000 level, which aligns with the 200-day Exponential Moving Average (EMA), suggests underlying bullish strength. If this support level holds firm, a retest of the recent $95,000 peak could be within reach. Traders are closely monitoring the Relative Strength Index (RSI), currently at 41. A move above 50 on the RSI could signal a confirmation of renewed bullish momentum.

Potential Scenarios:

• Scenario 1: Summit Optimism and ETF Inflows: Positive outcomes from the White House summit, coupled with a resurgence in ETF inflows, could propel Bitcoin to $95,000 and beyond.
• Scenario 2: Regulatory Uncertainty and ETF Bleed: Conversely, regulatory concerns stemming from the summit, combined with continued ETF outflows, could trigger a breakdown below the $85,000 support level.

Conclusion: A Week of High Stakes for Bitcoin

This week is poised to be pivotal for Bitcoin’s trajectory. The confluence of regulatory signals from the White House, shifting institutional sentiment, and critical technical levels suggests that heightened market volatility is to be expected. As cryptocurrency gains increasing political prominence, traders are advised to exercise caution and manage risk diligently during this period of market uncertainty.