Bitcoin Price After the White House Crypto Report, Will It Drop or Skyrocket?
2025-07-31
The recent release of the White House's comprehensive digital assets policy report titled "Strengthening American Leadership in Digital Financial Technology" has sparked widespread discussions across the crypto space.
With Bitcoin hovering near $118,000 before the report's release, the price action post-announcement revealed immediate volatility and investor caution.
The report covers topics from the banning of Central Bank Digital Currencies (CBDCs) to reinforcing individual rights to self-custody crypto assets, but its broader market impact remains uncertain.
This article explores how Bitcoin’s price is reacting, what lies ahead, and whether this marks the beginning of a bull run or a deeper correction.
What Did the White House Crypto Report Actually Say?
The policy framework outlines several key regulatory directives:
Protection of self-custody rights: A commitment to individual ownership of crypto assets, ensuring users can hold and transfer their cryptocurrencies without third-party intermediaries.
Ban on CBDCs: The U.S. government distances itself from state-controlled digital currencies, which some perceive as tools for surveillance and centralized control.
Empowering the CFTC: The Commodity Futures Trading Commission may become the primary overseer of digital assets, aiming to streamline enforcement and avoid regulatory ambiguity.
Encouraging stablecoins: Especially those backed 1:1 by the U.S. dollar, which could improve cross-border payments and economic inclusivity.
Although these proposals offer a framework for responsible innovation, they fall short of delivering aggressive pro-Bitcoin initiatives like federal acquisitions, tax incentives for mining, or explicit endorsements for institutional adoption.
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BTC Price Overview: Post-Report Reaction
Short-Term Decline, Long-Term Uncertainty
Following the report's release, Bitcoin dropped from a 24-hour high of $118,742 to a low of $115,521, stabilizing around $116,558. This 2.9% intraday decline was driven by two primary factors:
Market digestion of regulatory clarity: Investors paused to interpret how these policies might impact long-term crypto adoption.
Federal Reserve interest rate freeze: With no rate cuts on the horizon, risk-on sentiment took a hit.
Technical indicators reinforced caution: the RSI (Relative Strength Index) slipped from overbought levels toward a neutral 50 reading, while MACD (Moving Average Convergence Divergence) revealed a bearish crossover, suggesting near-term weakness.
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Why Bitcoin Fell After the Report
Key Drivers of the Price Dip
Lack of Direct Bullish Catalysts: Despite regulatory clarity, the absence of market-stimulating actions such as government Bitcoin purchases tempered enthusiasm.
Macroeconomic Headwinds: The Fed's stance on keeping rates high adds pressure to risk assets, making speculative crypto investments less attractive in the short term.
Historical Precedents: Similar to how markets responded to Trump’s strategic reserve announcement earlier in 2025, expectations ran high, but the substance failed to ignite long-term bullish momentum.
Psychological Resistance: After touching the $118K region multiple times, Bitcoin faced resistance without a fundamental trigger to push it higher.
Bitcoin Price Prediction After the Report
Short-Term Forecast (Next 1–2 Weeks)
Volatility likely as the market continues digesting the report’s implications.
Support at $113,000, with resistance near $118,000, defining the current consolidation zone.
Mid-Term Forecast (Q3 2025)
The market will closely monitor implementation details and timelines.
ETF inflows and fund activity could return if regulation reduces compliance uncertainty.
Long-Term Outlook (Late 2025)
If regulatory clarity leads to increased institutional comfort and the Federal Reserve pivots dovish, Bitcoin could rally toward $135,000–$150,000 by Q4 2025.
However, if macro tightening persists or crypto policy becomes restrictive, the downside scenario could limit prices to $100,000–$110,000.
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The Federal Reserve’s Role: Still Decisive
Interest rates remain a dominant macroeconomic force in shaping Bitcoin’s price trajectory. While the White House report guides regulation, monetary policy determines investor risk appetite.
With over 97% probability assigned to a pause in rate hikes, the market awaits Fed Chair Jerome Powell’s tone in FOMC presses. Hawkish language can trigger immediate selling, even in the absence of action.
BTC Market Sentiment and Geopolitics
Beyond U.S. regulation and central banking, Bitcoin is deeply intertwined with global economic sentiment. Notable factors include:
U.S.-China trade tensions: Increased tariffs or geopolitical friction tends to reduce risk appetite globally.
Institutional sentiment: Many hedge funds and asset managers are still wary of regulatory unpredictability.
Tech market correlation: Bitcoin increasingly mirrors high-growth stocks, challenging its status as a non-correlated asset.
This evolving correlation makes Bitcoin more sensitive to stock market corrections, earnings seasons, and macroeconomic data releases.
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Final Outlook
In conclusion, the White House crypto report provides strategic direction but lacks immediate market-moving power. While self-custody protection and stablecoin encouragement are steps in the right direction, the crypto market was hoping for more assertive support, such as institutional frameworks, tax reforms, or government purchases.
Short-Term: Bitcoin is likely to range between $113,000 and $118,000, reflecting investor indecision and macro caution.
Mid-Term: Regulatory developments and Fed tone will be decisive. Should confidence grow among institutions, we may see a renewed push toward $125,000.
Long-Term: If regulation encourages adoption and interest rates ease, Bitcoin could revisit all-time highs above $135,000. But any missteps could lead to prolonged stagnation or even a retracement to six figures.
Ultimately, Bitcoin’s fate rests on a delicate balance between political clarity and economic flexibility.
FAQ
What is Bitcoin’s price after the White House crypto report?
Bitcoin dropped from $118,742 to $115,521 post-report, settling around $116,558.
Why did Bitcoin drop after the policy release?
The drop stemmed from a lack of immediate bullish catalysts, macroeconomic caution, and market uncertainty.
What could push Bitcoin’s price up again?
A dovish Fed stance, stablecoin innovation, or regulatory clarity could all spark renewed upward momentum.
How will crypto regulation affect BTC long term?
Clear, innovation-friendly regulation could foster institutional entry, lifting Bitcoin’s valuation over time.
Where can I follow Bitcoin’s price updates?
Track live Bitcoin prices and news at Bitrue.
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