Bitcoin Plummets 4.5% After Trump's Speech Fails to Deliver Policy Changes

Bitcoin's price experienced a dramatic fluctuation following Donald Trump's remarks at the Digital Asset Summit in New York. The cryptocurrency surged to an intraday high of $87,453, but quickly retreated to $83,655 as traders were disappointed by the lack of anticipated policy changes in Trump's pre-recorded statement. The market had been anticipating substantial pro-crypto policies, such as digital asset tax cuts and government Bitcoin acquisitions, which were not explicitly mentioned in the speech. Trump did confirm his administration's plan to retain seized Bitcoin and enforce stablecoin regulations, reiterating his goal to position the United States as a global leader in cryptocurrency. Despite these points, the market's expectations for a more bullish stance led to a swift correction.

Market participants had been eagerly awaiting Trump's remarks, driven by speculation of major changes in United States cryptocurrency policies. The anticipation of tax exemptions or federal endorsements had built significant buying pressure before the event. When the actual speech did not meet these high expectations, the classic "buy the rumor, sell the news" scenario unfolded. Trump's reiteration of his administration's decision to keep confiscated cryptocurrencies off the market and his call for legislative clarity on stablecoin regulations were not sufficient to sustain the price increase. Many investors, expecting a more bullish stance, chose to exit their trades, initiating a rapid price decline back to $83,655 within hours of the statement.

Following the rapid Bitcoin price movements, technical analysts began to consider possible future price actions. Market expert Aksel Kibar identified $73,700 as a significant support level for Bitcoin’s price. He warned that a continued bearish momentum could push Bitcoin back down to this particular zone. However, Kibar emphasized that the long-term upward trend remains strong, though short-term pullbacks are likely before rallies continue. Market volatility following Trump’s statements demonstrates sensitivity to macroeconomic factors and regulations. Bitcoin’s uptrend remains robust, yet these sudden price changes indicate that risk management is crucial. Experts suggest traders should keep sufficient liquidity and maintain flexible strategies to navigate these uncertain market conditions.

Bitcoin movements this week were not solely due to Trump’s statement; earlier, the Federal Open Market Committee meeting minutes showed plans to slow quantitative tightening. Federal Reserve Chair Jerome Powell also suggested the possibility of two interest rate reductions in 2025. These hints provided a favorable setting for high-risk assets, and digital currencies benefited from that group. Arthur Hayes, the BitMEX co-founder, believes that the easing stance in Federal Reserve policy benefits Bitcoin and reinforces its hedge role. Bitcoin retraced after Trump’s speech, yet the macroeconomic landscape stays favorable for digital assets.

The latest Bitcoin price swings are a reminder that market volatility is a natural part of the crypto space. While Trump’s address did not provide the immediate boost traders had hoped for, his broader goal of crypto leadership of the United States does suggest a more supportive regulatory future. With economic factors like Federal Reserve policy adjustments and growing institutional acceptance continuing to play a major role, the future market trajectory appears favorable. However, traders should carefully handle short-term volatility, ensuring they are ready for price drops and potential future increases.