Bitcoin Price Stalls After Trump’s Statement, Traders Urged to Stay "Nimble and Cashed Up"

Bitcoin’s price held steady near $85,000 on March 20, following a surge to an intraday high of $87,453 earlier in the day. However, the cryptocurrency quickly retraced its gains to $83,655 after U.S. President Donald Trump made a video appearance at the Digital Asset Summit in New York, sparking mixed reactions among traders.

Before Trump's appearance, rumors had circulated on social media platform X, suggesting that the president would announce zero capital gains taxes on certain cryptocurrencies or unveil a favorable policy regarding the U.S. government's Bitcoin reserves. However, these rumors were not realized, leaving traders disappointed and quick to sell their positions.

Trump's actual statement was far less impactful than anticipated. He reaffirmed his position not to sell Bitcoin that had been confiscated by the government and reiterated his call for Congress to pass clear legislation on stablecoins. The most optimistic part of his address, however, was his goal to make the U.S. the global leader in cryptocurrency innovation.

"Together, we will make America the undisputed Bitcoin superpower and the crypto capital of the world," Trump stated.

As is often the case in crypto markets, traders had bought into the speculation surrounding Trump's appearance, expecting pro-Bitcoin executive orders. Once these expectations proved untrue, many quickly sold off, resulting in the price correction.

Aksel Kibar, a chartered market technician, suggested that Bitcoin could still experience a pullback to $73,700, noting that the longer-term chart for BTC/USD pointed to a potential correction. "The broken $73.7K level remains a key point. What follows from here will likely dictate Bitcoin's price action in the coming months," he said.

While Trump's statement may have been a catalyst for some short-term price volatility, it was not the sole factor behind Bitcoin's recent gains. On March 19, Bitcoin reacted positively to the release of Federal Open Market Committee (FOMC) minutes, where Federal Reserve Chair Jerome Powell confirmed that the central bank would slow the pace of its quantitative tightening (QT) policy. Powell also hinted at the possibility of two interest rate cuts in 2025, fueling optimism in the market.

BitMEX co-founder Arthur Hayes, who had long anticipated the end of QT, celebrated the Fed's admission that the tightening regime would effectively conclude on April 1. However, Hayes cautioned that while Bitcoin’s price may have found a bottom at $77,000, market volatility could still create challenges for both Bitcoin and stocks.

"Jay Powell delivered, QT is essentially over by April 1. But the next step for a true bull market is either an SLR exemption or a restart of QE. Was $77K the Bitcoin bottom? Probably. But stocks might still face more pain before we see a full recovery," Hayes commented. "Stay nimble and cashed up."

In addition to the Fed's dovish stance, another sign of optimism for Bitcoin was the return of the BTC Coinbase Premium, indicating renewed demand from spot traders. While futures markets have largely driven Bitcoin’s price action recently, the resurgence of spot market activity could signal a shift in the market's dynamics.

As traders navigate this volatile landscape, many are closely watching upcoming developments in both global monetary policy and U.S. cryptocurrency regulation, with the possibility of further shifts in Bitcoin's price trajectory.

For now, Bitcoin remains in a holding pattern near $85,000, as traders remain vigilant, ready to react to any potential news or market changes.