Leading Cryptocurrencies Pulled Back Thursday Despite President Donald Trump's Supportive Remarks for the Industry

Bitcoin breached $86,000 in early trading hours but reversed course shortly, plunging to a low of $83,647.19.

Leading cryptocurrencies were seen pulling back on Thursday despite President Donald Trump’s supportive remarks for the industry at an event.

What Happened: Bitcoin (CRYPTO: BTC) breached the $86,000 level in early trading hours but reversed course shortly, plunging to a low of $83,647.19. It was last seen trading at $84,064.5, a 0.46% decline.

Ethereum (CRYPTO: ETH) price, likewise, failed to build momentum after breaching the $2,000, with the world no.2 cryptocurrency seen retreating to the upper $1,900 range.

The trajectory didn't reflect Trump’s address at the Blockworks Digital Asset Summit, where he urged Congress to pass stablecoin legislation and reiterated his pledge to make America the world’s “undisputed Bitcoin superpower and cryptocurrency capital.”

More than $187 million was liquidated from the market in the past 24 hours, with bullish bets accounting for $129 million.

Bitcoin’s Open Interest dropped 3.85% in the last 24 hours. That said, derivatives traders seemed to buy the dip, as the percentage of traders placing bullish bets on Bitcoin surged to 51%, according to the Long/Short ratio.

The market sentiment flipped back to "Fear" after becoming "Neutral" on the Federal Reserve's policy moves a day earlier, according to the Crypto Fear and Greed Index.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization now stands at $2.77 trillion, following a drop of 2.27% in the last 24 hours.

Stocks, in the meantime, lost some ground as Wednesday’s rally lost a bit of steam. The Dow Jones Industrial Average dipped 11.31 points, or 0.03%, to close at 41,953.32. The S&P 500 fell 0.22% at 5,675.29. The tech-focused Nasdaq Composite slid 0.33%, ending at 17,691.63.

The blue-chip averages have struggled in March, with the Dow and the S&P 500 losing 4.3% and 4.8%, respectively, since the month began.

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Analyst Notes: Popular on-chain analytics firm CryptoQuant highlighted that the Bitcoin Bull Score Index has dropped to a two-year low of 20, signaling a broader bearish trend rather than a short-term correction.

"Historically, Bitcoin has only sustained major price rallies when the Bull Score is above 60," CryptoQuant stated.

Bitcoin Bull Score is at a two-year low of 20.Bitcoin's down 23% from its peak, and history shows strong rallies only happen when the score is above 60. Extended low scores often come with bear markets. pic.twitter.com/3OK5g9gibN— CryptoQuant (@CryptoQuant_) March 23, 2024

Arthur Hayes, co-founder of cryptocurrency exchange BitMEX and Chief Investment Officer at Maelstrom Fund, however, spotted a "good sign" for BTC.

"My custom U.S. bank credit supply index is trending higher. Doesn't mean we are done dumping but the odds are shifting more bullish," Hayes predicted.

The index, which is the sum of banking reserves held at the Federal Reserve and other deposits and liabilities, tracks liquidity injection in the risk-on market.

Another good sign for $BTC, my custom U.S. bank credit supply index is trending higher. Doesn't mean we are done dumping but the odds are shifting more bullish. pic.twitter.com/Tn2jf7JZaq— Arthur Hayes (@Arthur_Hayes_) March 23, 2024

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