Bitcoin Falls After Trump's Intervention At The Digital Asset Summit: Should We Be Worried?

Bitcoin is holding around 84,000 dollars after a turbulent and disappointing session for investors, marked by President Trump’s statements at the Digital Asset Summit, which did not meet the high expectations of the market.

The impact of Trump’s statements on the price of Bitcoin

On March 19, bitcoin experienced significant volatility. Its price first reached an intraday high of 87,453 dollars in the early hours of the trading session.

However, this increase was short-lived, as the price quickly fell back to 83,655 dollars following President Trump’s video intervention that occurred yesterday, March 20, during the Digital Asset Summit.

Before his intervention, social media, particularly X (formerly Twitter), was buzzing with promising rumors. Some mentioned a possible announcement of tax exemption on capital gains for certain cryptocurrencies, while others spoke of a favorable statement regarding a U.S. strategic reserve of bitcoin. These speculations contributed to the market’s momentary euphoria.

However, the reality turned out to be less spectacular than expected. Trump merely reiterated his promise not to sell the bitcoins confiscated by the government and urged Congress to legislate quickly on stablecoins.

His most positive statement remains his stated ambition: “Together, we will make America the undisputed superpower of Bitcoin and the global capital of crypto.”

Market Perspectives and Expert Recommendations

The crypto markets reacted according to a classic pattern of ‘buy the rumor, sell the news.’ Many traders had anticipated a major announcement by presidential decree in favor of bitcoin, and when it became clear that this would not be the case, a wave of selling ensued.

According to Aksel Kibar, founder of Tech Charts LLC, bitcoin could still experience a correction down to 73,700 dollars. In an analysis shared on X, he notes:

“The long-term BTC/USD chart shows that a pullback to the 73,700 dollar mark still seems plausible. The course of events will determine the price evolution in the coming months.“

This strength of bitcoin observed before the highly anticipated Digital Asset Summit (DAS) can be explained not only by the anticipation of Trump’s statements. From March 19, crypto and the market as a whole had already begun to react positively to the release of the FOMC (Federal Open Market Committee) minutes and Jerome Powell’s announcements, the chairman of the Federal Reserve.

Indeed, during the publication of the FOMC minutes, Powell confirmed that the Fed’s quantitative tightening would slow and that two interest rate cuts remained possible in 2025.

Arthur Hayes, co-founder of BitMEX, hailed this announcement as a sign that quantitative tightening would essentially end on April 1. However, he tempers this optimism by warning investors:

“Has BTC reached its low point at 77,000 dollars? Possible, but speculators may still struggle to convert Jay [Powell] to Team Trump, so stay nimble and have the necessary liquidity.“

A Promising but Uncertain Future

As analysts report, most of the recent fluctuations in bitcoin prices have been driven by activity in the futures markets. However, a positive sign appears with the re-emergence of the bitcoin premium on Coinbase, suggesting a possible return of demand in the spot market.

This premium, which indicates a higher bitcoin price on Coinbase than on other exchange platforms, is generally interpreted as a positive signal of American institutional and retail interest in the King of cryptos, which could support its upward trajectory in the medium term.

In summary, bitcoin is currently navigating through turbulent waters between political optimism and economic realities. While Trump’s commitment to the crypto sector and the Fed’s monetary easing are favorable winds, experts still recommend maintaining a measured approach in the face of potential market turbulence in the coming weeks.