The Influence of Donald Trump on Bitcoin’s Price Dynamics
The interaction between Donald Trump’s policies and Bitcoin’s price is notable. Following the imposition of tariffs in 2023, Bitcoin experienced a sharp decline. Subsequently, market sentiment improved with the announcement of postponed tariffs and a potential sovereign wealth fund, impacting Bitcoin’s recovery and future price action.
An earlier analysis of the BTC/USD chart highlighted the potential risks facing the cryptocurrency market, particularly in light of increased volatility subsequent to Donald Trump’s inauguration.
Following this event, significant market reactions were observed:
→ B: A drastic price drop occurred in Bitcoin after Trump enacted high tariffs on Canada, China, and Mexico, causing a 12% decline within a mere two days and resulting in the largest liquidation event in cryptocurrency history.
→ C: A recovery ensued as Trump postponed tariffs on Mexico and China. The positive market sentiment was further bolstered by announcements regarding the establishment of a sovereign wealth fund, which Forbes speculated might be leveraged for Bitcoin purchasing.
The technical analysis of BTC/USD reveals a bearish tendency, as showcased by the descending red channel. However, potential buying activity signals a glimmer of hope:
→ A testing phase is occurring at the Order Block (indicated in purple).
→ Additionally, February’s low could act as a critical support trendline (denoted in orange) dating back to 2024.
→ D: Notably, bears struggled to maintain downward momentum post the breach of the 95,750 level.
In summary, Donald Trump’s policies and market responses have a substantial impact on Bitcoin’s price fluctuations. The volatility triggered by tariff announcements has been evident, leading to significant price declines. Nevertheless, encouraging developments such as postponed tariffs and the possibility of a sovereign wealth fund have contributed positively to market sentiment, offering potential support for Bitcoin’s price in the future.
Original Source: www.actionforex.com
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