Bitcoin’s price surged to $87,453 before dropping to $83,655 after President Trump’s address at the Digital Asset Summit. Speculations around favorable tax announcements were not fulfilled, leading to a sell-off. Experts suggest potential corrections and indicate that recent price movements are influenced by futures markets.

Bitcoin (BTC) experienced a significant rally, reaching an intraday high of $87,453 during the early hours of the New York trading session. However, shortly after President Donald Trump’s address at the Digital Asset Summit, the price retraced to $83,655. Expectations surrounding potential announcements regarding zero capital gains taxes or favorable statements on Bitcoin reserves were unmet, leading to disappointment among traders.

During his address, President Trump reiterated his commitment not to sell confiscated Bitcoin and urged Congress to swiftly legislate on stablecoins. His most encouraging remark was his vision of positioning the US as a leader in the cryptocurrency sector. As is often the case in cryptocurrency markets, the initial buying frenzy triggered by rumors turned to selling after the reality of Trump’s statements set in.

Aksel Kibar, a chartered market technician, suggested that Bitcoin could still experience a correction down to $73,700. He pointed out that Bitcoin’s recent gains are not solely due to excitement over Trump’s statements but also in response to the Federal Reserve’s recent communications.

BitMEX co-founder Arthur Hayes noted the Federal Reserve’s intention to slow down its quantitative tightening, describing it as an admission that would positively affect market conditions, while still warning about the potential for volatility impacting Bitcoin and stock prices. Additionally, he highlighted that Bitcoin’s recent price movements have largely been influenced by futures market activities. The reemergence of the BTC Coinbase premium may signal a return of spot demand into the market.

The recent fluctuation in Bitcoin’s price, following President Trump’s address, underscores the volatility inherent in the cryptocurrency market. Trader sentiment was initially buoyed by speculative rumors, only to be met with disappointment when actual statements failed to meet expectations. The analysis from market experts suggests a potential correction could occur, while broader economic signals from the Federal Reserve may also play a crucial role in future Bitcoin price actions.

Original Source: www.tradingview.com

Related posts:

Bitcoin Price Fluctuates After Trump’s Statement at Digital Asset Summit Bitcoin Poised for a Potential Rally Beyond $100k Ahead of Trump’s Inauguration Arthur Hayes Warns of Potential Bitcoin Plunge to $75,000 Amid Market Instability Bitcoin Price Forecast: BTC Stabilizes Above $85,500 Amid Economic and Political Developments