Bitcoin Faces Potential $5K Swing Post-White House Crypto Summit, STS Digital Warns

As the White House Crypto Summit looms on March 7, 2025, the cryptocurrency market braces for turbulence, with options pricing on Deribit signaling a possible $5,000 swing in Bitcoin’s value. According to analysis from STS Digital, a digital assets trading firm, the summit—hosted by U.S. President Donald Trump—could spark significant volatility not only for Bitcoin (BTC) but also for Ethereum (ETH) and Solana (SOL). Scheduled to convene industry leaders like Coinbase’s Brian Armstrong and Chainlink’s Sergey Nazarov, the event is poised to address Trump’s strategic crypto reserve plans, potentially reshaping market sentiment.

STS Digital’s Jeff Anderson, head of Asia, noted a stark 24-point gap in implied volatility between Bitcoin options expiring Friday and Saturday. On March 5, Friday expiries reflected a 56% annualized volatility, while Saturday’s jumped to 80%, suggesting traders anticipate a dramatic price move within 24 hours of the summit’s conclusion. Translated to price terms, this forward volatility of 105% indicates Bitcoin—currently trading near $87,600—could shift by 5.5%, or roughly $5,000, between Friday and Saturday morning UTC. Ethereum and Solana options mirror this trend, pricing in potential swings of $135 and $13, respectively, based on their current levels of $2,450 and $149.

The summit follows Trump’s March 2 announcement on Truth Social, where he outlined a U.S. crypto reserve featuring Bitcoin, Ethereum, XRP, Solana, and Cardano. Initially met with an 11% Bitcoin rally to $94,164, the market later cooled as traders booked profits, dropping BTC to $82,986 by March 4. The inclusion of altcoins surprised some, given earlier speculation of a Bitcoin-only reserve, and has fueled uncertainty. Anderson cautioned that while volatility expectations are high, outcomes often underwhelm, advising options as a safer bet over directional trades.

Bitcoin’s recent volatility—oscillating between $82,000 and $95,000 this week—reflects broader market jitters. The summit’s agenda remains unclear, but U.S. Commerce Secretary Howard Lutnick hinted at a focus on Bitcoin’s “special status” within the reserve, with other tokens treated “positively but differently.” Industry voices, like MicroStrategy’s Michael Saylor, advocate for a hefty Bitcoin stockpile—potentially 1 million BTC—while others question the feasibility amid a $36.22 trillion national debt.

For traders, the stakes are tangible. A bullish outcome—such as concrete reserve details or regulatory clarity—could push Bitcoin past its $90,000 resistance, reigniting its climb toward $100,000. Conversely, vague or disappointing news might trigger a sell-off, testing support near $84,000. Ethereum and Solana, buoyed by DeFi and staking narratives, face similar forks: ETH could reclaim $2,500, while SOL eyes $160 if momentum holds. Yet, STS Digital’s analysis suggests the market’s nerves could amplify any reaction, making this a pivotal moment for crypto’s 2025 trajectory.

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Sophia Caldwell
Sophia Caldwell