By Chris Hollingworth 
Bitcoin (BTC) experienced a surge in price, reaching an intraday high of $87,453 during the early hours of the NY trading session. However, the price quickly retraced to $83,655 following a video appearance by US President Donald Trump at the Digital Asset Summit in New York. Prior to the video statement, rumors circulated on various platforms, suggesting that President Trump might announce zero capital gains taxes on certain cryptocurrencies or issue a positive statement about the US strategic Bitcoin reserve.
Disappointingly for some traders, neither rumor turned out to be true. Instead, Trump reiterated his commitment not to sell confiscated Bitcoin and called on Congress to implement clear stablecoin legislation promptly. One positive note from Trump’s speech was his ambition to position the US as a leader in the cryptocurrency space, stating, “Together, we will make America the undisputed Bitcoin superpower and the crypto capital of the world.”
Typical of crypto markets, traders initially reacted to the rumors of pro-Bitcoin executive orders but sold off once it became clear that such announcements were not forthcoming. Chartered market technician Aksel Kibar suggested a potential correction in Bitcoin’s price to $73,700 in a post on X, emphasizing the significance of the upcoming price action for the following months.
Bitcoin’s recent price strength cannot be solely attributed to the excitement surrounding Trump’s statement. On March 19, BTC responded positively to the release of FOMC minutes and Federal Reserve Chair Jerome Powell’s indication that the Fed’s quantitative tightening regime would slow down and the possibility of two interest rate cuts in 2025 remained open.
BitMEX co-founder Arthur Hayes noted that the Fed’s acknowledgment of the end of quantitative tightening on April 1 could signal a positive turn for Bitcoin, with $77,000 potentially marking the price bottom. However, Hayes warned of potential volatility in both stocks and BTC, emphasizing the need to remain cautious and prepared for unexpected market movements.
Recent price movements in Bitcoin have been influenced significantly by futures market activities, but the resurgence of the BTC Coinbase premium suggests a return of spot demand to the market. This indicator could indicate a shift in market sentiment and investment behavior towards Bitcoin.
It is essential to note that this article does not provide investment advice or recommendations. All investment decisions involve risks, and readers should conduct thorough research before making any financial decisions.
