Bitcoin Price Stalls at $92K as US Congress Snubs Strategic Reserve Plan

Bitcoin price struggled to maintain momentum above $92,000 on March 5 as traders weighed political uncertainty and declining institutional interest. The largest cryptocurrency fell from its intraday high of $92,137, reflecting growing scepticism over a proposed U.S. Bitcoin reserve.

U.S. Congress Rejects Bitcoin Reserve Proposal

Bitcoin price rally stalled after Lummis, a key advocate for a U.S. Bitcoin reserve, admitted that lawmakers were unwilling to support the initiative.

Speaking at Bitcoin Investor Day in New York, she said proponents “might need to put a pin” in the plan, echoing concerns from House Banking Committee Chairman Tim Scott.

The development dampened optimism following earlier remarks by U.S. Commerce Secretary Howard Lutnick, who hinted at a potential Bitcoin-only stockpile announcement at the White House Crypto Summit on March 7. However, Lummis’ statement suggested that political backing remains insufficient to push the plan forward.

Anthony Pompliano, founder of Professional Capital Management, argued that a Bitcoin reserve is inevitable.

“There are too many smart people around the table for the United States to fumble this,” he said in an X post.

Bitcoin Faces Resistance as Whale Transactions Decline

Bitcoin price failure to break past $92,000 comes amid a sharp drop in large transactions. On-chain data from Santiment shows a 30% decline in whale activity, with transactions over $1 million falling from 3,851 on Feb. 25 to 2,517 by March 5.

Institutional investors appear cautious, likely waiting for regulatory clarity before committing significant capital. Market sentiment remains bullish overall, but the slowdown in whale transactions suggests hesitancy in pushing BTC higher without stronger confirmation.

Justin Bennett, a crypto trader, warned that Bitcoin could retest $78,000 before resuming its uptrend.

“I still think we see a sweep of the $78,260 low, especially after the rejection from $92K monthly resistance,” he wrote on X.

Geopolitical Risks and U.S. Trade Policy Add Uncertainty

Beyond the Bitcoin reserve debate, macroeconomic factors continue to influence BTC price action. Investors remain cautious amid uncertainty over U.S. trade policy, with U.S President Donald Trump hinting at tariff rollbacks but providing little clarity on future decisions.

Geopolitical tensions have driven volatility in risk assets, with Bitcoin mirroring broader market movements.

Market strategist Joel Kruger from LMAX Group noted that Bitcoin’s correlation with macroeconomic factors remains strong.

“With Fed rate expectations shifting to more cuts in 2025 and Bitcoin shining as a store of value, there are reasons to expect BTC to hold support on dips,” he said.

Bitcoin Price Bulls Need Stronger Institutional Demand to Break Higher

Analysts warn that BTC could consolidate between $85,000 and $92,000 in the short term without fresh buying pressure.

Max, a market commentator on X, pointed to historical trends from Trump’s first term, noting that BTC faced early volatility before surging later in the year.

“The first 2-3 months of his presidency were nothing but chop & pain for BTC & crypto. But then from April 1 through December 31, price went vertical,” he observed.

Bitcoin price faces hurdles as political resistance and declining whale activity weigh on price action. Without strong institutional support, a $78K retest remains a possibility.