Bitcoin surged to a two-month high of $94,000 due to President Trump’s positive comments about the Federal Reserve and tariff reductions. This reversal from his previous stance invigorated the crypto market, encouraging increased trading and bullish sentiment. Bitcoin’s rise followed a previous dip, showcasing its volatility and sensitivity to political statements.
Bitcoin (BTC/USD) experienced a significant surge, reaching $94,000, its highest in two months, following positive comments from President Trump regarding Federal Reserve Chair Jay Powell and trade tariffs on China. This rally occurred after Bitcoin had dipped to $87,000 the previous day. Traders reacted favourably to Trump’s statements, which aimed to alleviate investor concerns about both the Fed and the ongoing trade tensions with China.
The dramatic shift in Trump’s approach, as he declared no intention to remove Powell and signalled a reduction in the 145% tariffs on Chinese imports, reinvigorated market sentiment. This change was particularly beneficial for digital assets like Bitcoin, which thrived in an environment where investor nerves were calmed.
With the alleviated risks associated with Fed policies and trade wars, the crypto market capitalised on the renewed optimism. Bitcoin led the way, supported by increased trading volumes and positive market momentum. This development marked a successful breakout from its recent trading range, appealing to traders searching for fruitful opportunities after a sluggish period.
Earlier in the month, Bitcoin had plummeted to a six-month low of $74,000, losing all the ground gained post-election. Given the sensitivity of cryptocurrencies to Trump’s remarks—especially since he has surrounded himself with a team to create beneficial regulations—his social media activity could profoundly impact digital asset prices. Furthermore, Ethereum (ETH/USD) also saw gains, registering a 12% increase on Tuesday, trading around $1,800 by mid-week.
