Bitcoin price wavered on Thursday as investors embraced a risk-off sentiment amid the ongoing trade war between the US and its top trading partners.
Political and Economic Factors
Bitcoin was trading at $90,000, up 15% from its lowest level this month, while US stock indices like the Dow Jones, Nasdaq 100, and S&P 500 dropped by over 1%. BTC has two key catalysts that may push its price to $100,000 in the next few days. First, Donald Trump will host the first-ever crypto summit in Washington. This summit will feature top industry leaders, including Ripple’s Brad Garlinghouse, Coinbase’s Brian Armstrong, and Tether’s Paolo Ardoino.
US Bitcoin Reserve Strategy
The most notable outcome of the summit will be the launch of the Strategic Bitcoin Reserve by Donald Trump. Such a reserve could help boost Bitcoin’s price due to the size of the government’s balance sheet. Options include converting the government's 198,109 coins, worth over $17.9 billion, into reserves, or advancing the Cynthia Lummis bill, which proposes the government buy and hold 200,000 coins annually for five years.
Bitcoin Technical Analysis
The weekly chart shows that Bitcoin’s price is showing signs of bottoming out after plunging to a low of $78,100 last week. It has remained above the ascending trendline and has formed two hammer patterns. Such a pattern is one of the most bullish reversal signals. The support level at $80,000 is crucial for Bitcoin price targeting $100,000.
Factors including political initiatives and economic indicators can significantly impact the future dynamics of Bitcoin price. Investors' attention is focused on the upcoming summit and US employment data.
