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Bitcoin Price Fluctuation After Trump's Crypto Remarks

Bitcoin Price Fluctuation After Trump's Crypto Remarks

Bitcoin Price Analysis

Bitcoin Price Reaction to Trump's Crypto Speech

Bitcoin (BTC) experienced a brief price rally, reaching an intraday high of $87,453, before retracting to $83,655 following a video appearance by former US President Donald Trump at the Digital Asset Summit in New York. Prior to the appearance, rumors circulated on X suggesting a potential announcement of zero capital gains taxes on certain cryptocurrencies or a positive statement regarding a US Bitcoin reserve. These rumors proved unfounded.

Trump reiterated his commitment to not selling government-confiscated Bitcoin and urged Congress to enact clear stablecoin legislation. His most significant statement was his goal of making the US a global crypto leader, declaring, "Together, we will make America the undisputed Bitcoin superpower and the crypto capital of the world."

Market Reaction and Expert Analysis

The initial price surge was attributed to traders reacting to pre-announcement speculation. When Trump's statements fell short of expectations, selling pressure emerged. Chartered market technician Aksel Kibar suggested a potential Bitcoin price correction to $73,700, stating that the subsequent price action will shape the market over the coming months.

BTC/USD 1-day chart

While Trump's remarks influenced the market, other factors also played a role. Bitcoin responded positively to the release of FOMC minutes on March 19 and Federal Reserve Chair Jerome Powell's indication of a slower pace of quantitative tightening and the possibility of interest rate cuts in 2025. BitMEX co-founder Arthur Hayes, while optimistic about the potential end of QT, cautioned about lingering volatility in both stocks and Bitcoin, advising traders to "stay nimble and cashed up."

Driving Forces Behind Bitcoin's Recent Price Action

Bitcoin's recent price movement is attributed to a combination of factors, including activity in the futures markets and the resurgence of the Bitcoin Coinbase premium, suggesting renewed spot market demand.

Bitcoin Coinbase premium index

Disclaimer: This article does not provide financial advice. Conduct thorough research before making investment decisions.

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