Bitcoin’s (BTC) price surged to an intraday peak of $87,453 during the early hours of the New York trading session, only to quickly pull back to $83,655 shortly after the appearance of former President Donald Trump at the Digital Asset Summit in New York.
Before his video statement, speculation spread on social media that Trump might announce zero capital gains taxes on specific cryptocurrencies or make a favorable comment regarding a strategic Bitcoin reserve for the U.S.
Unfortunately for many traders, both rumors turned out to be unfounded. Instead, Trump reiterated his commitment not to sell Bitcoin seized by the government and urged Congress to pass clear legislation on stablecoins as soon as possible.
The most encouraging statement from Trump was his renewed ambition to position the U.S. as a leader in the cryptocurrency space.
“Together, we will make America the undisputed Bitcoin superpower and the crypto capital of the world.”
In typical fashion for cryptocurrency markets, traders seemed to react positively to the rumors of a pro-Bitcoin executive order. However, once it became clear that this wasn’t the case, they quickly sold off their holdings.
In a post on social media, market technician Aksel Kibar noted that there remains a possibility for Bitcoin’s price to dip down to $73,700.
Kibar commented,
“Long-term chart on BTC/USD still suggests a pullback to the broken $73.7K level. What happens next will determine the price action for the coming months.”
Bitcoin’s recent strength isn’t solely attributed to excitement surrounding Trump’s remarks. On March 19, BTC experienced a positive response to the release of minutes from the Federal Open Market Committee (FOMC) and Federal Reserve Chair Jerome Powell’s assurance that the pace of quantitative tightening would ease and that there could be two interest rate cuts in 2025.
BitMEX co-founder Arthur Hayes celebrated what he viewed as a confirmation from the Fed that quantitative tightening would essentially conclude on April 1. Nonetheless, he warned that while the Bitcoin price may have reached a bottom at $77,000, prevalent volatility could still inflict more pain on stocks and BTC.
Hayes pointed out,
“JAYPOW delivered; QT basically ends April 1. For a real bullish outlook, the next step is either an SLR exemption or a restart of QE. Was $77K the bottom for BTC? Probably. But stocks may have more suffering ahead to fully convert Jay to Team Trump, so stay agile and liquid.”
In recent reports, a considerable portion of Bitcoin’s price movement has been attributed to activity in the futures markets. However, the return of the BTC Coinbase premium might indicate that spot demand is beginning to resurface in the marketplace.
This content is not investment advice or recommendations. Every investment and trading move carries risk, and individuals should perform their own research before making decisions.