Trump's Crypto Summit Boosts Bitcoin to $86,500

Coin WorldSaturday, Mar 1, 2025 5:00 am ET

1min read

Bitcoin Price Surges Amid Trump's Crypto Summit Announcement

Bitcoin (BTC) has experienced a significant price increase, rising over 8% to reach $86,500, following the announcement of a White House Crypto Summit by former President Donald Trump on March 7. The news has sparked immediate bullish sentiment, pushing BTC from $78,000 to a new intra-day high.

Ethereum (ETH) and major altcoins such as Ripple (XRP) and Cardano (ADA) have also followed suit, with increased investor optimism surrounding potential regulatory shifts. Market participants are speculating that the government may adopt crypto-friendly policies, leading to a surge in trading volume and market activity.

Analysts caution that while sentiment remains bullish in the short term, macroeconomic risks could still pose challenges to Bitcoin's rally. Trump's reaffirmation of 25% tariffs on Mexican and Canadian imports and the imposition of an additional 10% tariff on Chinese goods have escalated global trade tensions, strengthening the US dollar and making risk assets like Bitcoin more vulnerable to corrections.

The latest Personal Consumption Expenditures (PCE) inflation report showed a 0.3% increase in January, bringing the annual rate to 2.5%. Core PCE, the Federal Reserve's preferred inflation gauge, slowed to 2.6% from 2.9% in December. While the data aligned with expectations, it reinforced the likelihood of the Fed keeping interest rates steady, which could dampen BTC's momentum.

Bitcoin rebounded by over 4% after briefly falling below $83,000, climbing back above $86,000. CryptoQuant CEO Ki Young Ju believes BTC's bullish cycle will extend until April 2025, following its two-year market pattern. If demand remains strong, Bitcoin could continue higher, but weak buying pressure could drag prices lower toward $77,000 support.

Analysts warn that Trump's trade tariffs on European goods could increase market volatility, making Bitcoin's rally less predictable in the coming weeks. Traders are advised to remain cautious, especially with leveraged positions.

Bitcoin is currently trading at $85,400, showing a 0.8% gain after

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