Trump's Digital Asset Summit appearance rallies Bitcoin (BTC) price to intraday high of $87,453

Bitcoin (BTC) price rallied to an intraday high of $87,453 in the early hours of the NY trading session but quickly retraced its gains to $83,655

Bitcoin (BTC) price rose to an intraday high of $87,453 in the early hours of the New York trading session but quickly reversed its gains to $83,655 shortly after US President Donald Trump made a video appearance at the Digital Asset Summit in New York.

Prior to the video statement, rumors circulating on X suggested that President Trump would announce zero capital gains taxes on certain cryptocurrencies or issue a favorable statement about the US strategic Bitcoin reserve.

To the disappointment of some traders, neither rumor proved to be true, and Trump simply doubled down on his promise not to sell Bitcoin that has been confiscated by the government, and he called for Congress to enact clear stablecoin legislation as soon as possible.

The most positive statement made by President Trump was his restated goal of making the US the leader in all things crypto.

As is commonplace for crypto markets, traders clearly bought into the rumor that Trump would make some sort of pro-Bitcoin executive order statements, and once this was clearly not the case, they sold on the news.

In an X post, chartered market technician Aksel Kibar said that there is still a chance of Bitcoin price correcting to $73,700.

BTC/USD 1-day chart. Source: Aksel Kibar / X

Kibar said,

"There is still a possibility of BTC correcting to $73,700 as a measured move from the August 2021 high, but chances of this scenario decrease if BTC manages to close today above $80,000."

According to Kibar, a close above $80,000 would open the door for Bitcoin to rally towards $90,000, setting the stage for a potential continuation towards the $98,000 level, which is the 1.618 Fibonacci extension from the 2020 low to the 2021 high.

Bitcoin price responded positively to the release of FOMC minutes and Federal Reserve Chair Jerome Powell’s confirmation that the Fed’s quantitative tightening regime would reduce its pace and that the possibility of two interest rate cuts in 2025 remained on the table.

BitMEX co-founder Arthur Hayes took a victory lap at what he described as the Fed’s admission that QT would essentially end on April 1, but he cautioned that while $77,000 may have been the Bitcoin price bottom, surprise bouts of volatility could lead to more pain in stocks and BTC.

Hayes said,

"The pivot in Fed policy is now clear. QT is essentially ending on April 1 and the door is open for two rate cuts in 2025. A perfect setup for Bitcoin to breakout towards new all-time highs. This is a true turning point in the market."

As reported by Cointelegraph, a majority of Bitcoin’s recent price action has been driven by activity in the futures markets, but the reappearance of the BTC Coinbase premium could be a sign that spot demand is returning to the market.

Bitcoin Coinbase premium index. Source: CryptoQuant

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.