Bitcoin remains at $84,000 following a disappointing session marked by Trump's statements at the Digital Asset Summit. Let's examine the impact of his words on the market.
Impact of Trump’s Statements on Bitcoin
On March 19, bitcoin experienced significant volatility, first reaching $87,453 but then dropping to $83,655 after President Trump's video intervention on March 20 during the Digital Asset Summit. Prior to this, social media, especially X, was buzzing with rumors about positive changes in cryptocurrency policy, which led to temporary market enthusiasm. However, Trump's statements were less impressive than anticipated; he confirmed that the government would not sell seized bitcoins and urged Congress to legislate on stablecoins. 'Together, we will make America the undisputed superpower of Bitcoin and the global capital of crypto,' he said.
Market Perspectives and Expert Recommendations
Crypto markets reacted according to the classic 'buy the rumor, sell the news' pattern. Many traders anticipated a major announcement in favor of bitcoin, and when it didn't happen, a wave of selling occurred. Aksel Kibar from Tech Charts LLC predicts a potential correction down to $73,700 for bitcoin. During the FOMC minutes release, Jerome Powell confirmed Fed's monetary restraint would slow, and Arthur Hayes from BitMEX claimed it would effectively end on April 1. He advises maintaining appropriate liquidity.
A Promising but Uncertain Future
Analysts note that recent bitcoin price fluctuations were driven by futures market activity, yet the reappearance of the bitcoin premium on Coinbase suggests a return of spot market demand. The premium, indicating a higher bitcoin price on Coinbase than on other exchanges, is generally viewed as a positive signal of American institutional and retail interest, supporting its medium-term upward trend. In summary, bitcoin currently navigates through political optimism and economic realities. While Trump's pledges and the Fed's monetary policies offer a supportive backdrop, experts recommend caution amid potential market volatility.
Bitcoin continues to navigate challenging waters between political promises and economic realities. Despite support from Trump's pledges and Fed policies, experts advise remaining vigilant against potential market fluctuations.
