Bitcoin‘s valuation surged to over $66,000 before President Donald Trump’s national address, influenced by a rise in global risk appetite. Even though there was a subsequent pullback, Bitcoin settled nearer to $65,500. This movement, paired with significant stock market gains and Trump’s economic emphasis, might suggest the formation of a new local bottom for digital currencies.
Will Trump’s Comments Influence Crypto Volatility?
In his speech, Trump highlighted a decrease in inflation alongside signs of economic recovery, pointing to a 1.7% reduction in core inflation over the past three months. Describing his return year as a historic comeback, Trump reassured markets by committing that U.S. economic strategies would not revert to previous methods. His remarks saw Bitcoin swiftly ascend from $64,000 to $66,000.
How are Support and Resistance Levels Shaping Bitcoin’s Path?
Bitcoin encountered resistance at $66,000, slipping into a tight trading bracket. The $64,500 mark now provides crucial support, following a brief 3.7% rise from recent lows. Nonetheless, buying momentum seems weaker, with challenges in maintaining four-hourly closes above $66,500. Market memories of Monday’s $370 million liquidations linger as Bitcoin strives to hold above $60,000. Data from Polymarket and CryptoQuant suggest the $55,000 level as potential support if selling pressure intensifies.
The potential for a rebound exists if buyers can prevent a further downside. Bitcoin remains almost 50% below its peak, and three indicators still flag possible capitulation risks. Although trading volumes hint at short-term optimism, the struggle to sustainably surpass $66,000 continues to raise concerns.
How is Bitcoin Tracking with Stock Movements?
Bitcoin’s trajectory aligns with major stock indices, with recent gains in Asian markets and anticipated Nvidia earnings results spilling into the cryptocurrency sphere. Solana‘s 8% and Chainlink‘s 5% jumps signal a stronger rally among altcoins than Bitcoin.
Yet, institutional caution remains. Recent withdrawals from crypto-focused ETFs indicate hesitance, with large-scale investors holding back until Bitcoin breaches established resistance brackets.
If Nvidia’s upcoming financial results disappoint, the resulting stock market reaction could press Bitcoin back to $63,000.
- Anticipated Nvidia earnings might alter current positive market sentiment.
- Bitcoin’s intermediate target: $67,500, breaking the downtrend and moving towards $70,000.
- Conversely, dropping below $64,000 could highlight market vulnerabilities.
- Continuous macroeconomic challenges could see Bitcoin slide to the $55,000 support level.
Navigating the next day’s trading will be crucial. Trump’s optimistic economic stance remains influential, but market forces, including potential Nvidia outcomes and broader macroeconomic conditions, continue to sway Bitcoin’s course.
“Our economic strategies are geared for a new era of growth.”
Should macroeconomic difficulties persist, the risk of a further downturn to $55,000 looms.
