Bitcoin Price Warms Up Following Trump’s Remarks — Trader Advises Staying Agile and Liquid
Bitcoin (BTC) briefly surged to an intraday high of $87,453 during the early New York trading session but quickly retreated to $83,655 after U.S. President Donald Trump’s video appearance at the Digital Asset Summit in New York.
Rumors Fuel Short-Lived Rally
Prior to Trump’s speech, speculation circulated on social media platform X, suggesting the president might announce zero capital gains taxes on cryptocurrencies or make favorable statements 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.”
Market Reaction and Analyst Outlook
The market’s initial optimism faded quickly, leading traders to sell on the news. Chartered market technician Aksel Kibar noted on X that Bitcoin could still correct further, potentially revisiting the $73,700 level:
“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.”
Federal Reserve Policy Also Influencing BTC Price
Bitcoin’s recent strength isn’t solely attributed to Trump’s remarks. On March 19, BTC reacted positively to the release of Federal Open Market Committee (FOMC) minutes and Federal Reserve Chair Jerome Powell’s indication that quantitative tightening (QT) would slow down, with potential interest rate cuts in 2025.
BitMEX co-founder Arthur Hayes highlighted the Fed’s shift, suggesting QT would effectively end by April 1. However, he cautioned investors to remain cautious and liquid, as volatility could still impact both stocks and Bitcoin:
“JAYPOW delivered, QT basically over Apr. 1. The next thing we need to gt 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?
While recent Bitcoin price movements have largely been driven by futures market activity, the reappearance of the BTC Coinbase premium suggests renewed spot market demand.
- Bitcoin briefly surged to $87,453 before retracing after Trump’s speech.
- Rumors of favorable crypto policies from Trump proved false.
- Analysts warn of potential correction to $73,700.
- Fed policy changes also influencing Bitcoin’s price.
- Coinbase premium indicates possible return of spot 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.
