Bitcoin Price Recovers After Trump’s Remarks — Traders Urge Caution
Bitcoin (BTC) briefly surged to an intraday high of $87,453 during the early New York trading session but quickly retreated to $83,655 following remarks by U.S. President Donald Trump at the Digital Asset Summit in New York.
Rumors Fuel Short-Lived Rally
Prior to Trump’s appearance, speculation circulated on social media platform X, suggesting the president might announce zero capital gains taxes on cryptocurrencies or reveal favorable news regarding a U.S. strategic Bitcoin reserve. However, these rumors proved unfounded.
Instead, Trump reiterated his commitment not to sell government-confiscated Bitcoin and urged Congress to swiftly enact clear stablecoin legislation. He emphasized his goal of positioning the U.S. as a global crypto leader, stating:
“Together, we will make America the undisputed Bitcoin superpower and the crypto capital of the world.”
Analysts Warn of Potential Pullback
Chartered market technician Aksel Kibar cautioned traders that Bitcoin could still correct further, potentially revisiting the $73,700 level. Kibar noted:
“Long-term chart on BTC/USD. Still looks like a pullback to the broken $73.7K. What follows from here will decide on the following several month’s price action.”
BitMEX co-founder Arthur Hayes also advised caution, highlighting recent Federal Reserve announcements indicating a slowdown in quantitative tightening (QT). Hayes suggested that while $77,000 might represent Bitcoin’s bottom, volatility could persist:
“JAYPOW delivered, QT basically over Apr. 1. The next thing we need to get bulled up for realz is either SLR exemption and or a restart of QE. Was BTC $77K the bottom, prob. But stonks prob have more pain left to fully convert Jay to team Trump so stay nimble and cashed up.”
Spot Demand Returning?
Recent Bitcoin price movements have largely been driven by futures market activity. However, the reappearance of the Coinbase premium index suggests renewed spot market demand, potentially signaling stronger underlying support for BTC prices.
- Bitcoin briefly surged above $87,000 before retreating after Trump’s speech.
- Rumors of favorable crypto announcements from Trump proved false.
- Analysts warn of possible correction to around $73,700.
- Federal Reserve signals easing of quantitative tightening, potentially bullish for Bitcoin.
- Coinbase premium index indicates possible return of spot market demand.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
