Bitcoin’s price briefly surged past $87,453 before retracing to $83,655 following U.S. President Donald Trump’s video address at the Digital Asset Summit in New York. Despite speculation about zero capital gains taxes or a U.S. strategic Bitcoin reserve, Trump’s actual statements were more measured, reinforcing his commitment to not selling confiscated Bitcoin and calling for stablecoin legislation.
Bitcoin’s Brief Surge and Market Reaction
Ahead of Trump’s speech, crypto traders anticipated a pro-Bitcoin policy announcement, leading to a temporary rally. However, as no executive orders or tax breaks were revealed, the market reacted swiftly, selling off post-announcement.
Trump’s most notable statement emphasized his goal of making the United States the global leader in Bitcoin and crypto:
“Together, we will make America the undisputed Bitcoin superpower and the crypto capital of the world.”
Despite this bullish sentiment, chartered market technician Aksel Kibar warned that Bitcoin’s price could still correct to $73,700, a key technical level.
Federal Reserve Policies and Bitcoin’s Strength
Bitcoin’s resilience isn’t solely tied to Trump’s speech. On March 19, BTC responded positively to the FOMC minutes, in which Federal Reserve Chair Jerome Powell signaled a slowdown in quantitative tightening (QT) and reaffirmed the possibility of two interest rate cuts in 2025.
BitMEX co-founder Arthur Hayes suggested that April 1 could mark the end of QT, reinforcing optimism in the crypto market. However, he cautioned that equities may still face volatility, which could impact Bitcoin:
“QT basically over Apr. 1. The next thing we need to get bulled up for realz is either SLR exemption and or a restart of QE. Was BTC $77K the bottom? Probably. But stonks probably have more pain left, so stay nimble and cashed up.”
Future Outlook: Traders Stay Wary Amid Market Volatility
While Bitcoin’s recent price action has been driven by futures trading, the return of the Coinbase Premium suggests spot demand may be rebounding. This could indicate renewed investor interest beyond just leverage-driven speculation.
With the Federal Reserve’s monetary policy and U.S. political stance on crypto evolving, traders remain cautious, watching for further developments that could drive Bitcoin’s next major move.