- Bitcoin’s price declines slightly to approximately $85,500 on Thursday after a nearly 5% rise the previous day.
- President Trump urged the Federal Reserve to decrease interest rates as tariffs negatively impact the economy.
- The US spot Bitcoin ETF has seen inflows for the third consecutive day this week.
- President Trump’s participation in the Blockworks Digital Asset Summit signifies a landmark event, being the first time a sitting US president addresses a crypto conference.
As of Thursday, Bitcoin (BTC) is trading around $85,500 after recovering nearly 5% the previous day due to the Federal Reserve’s (Fed) decision to maintain interest rates. President Donald Trump took to the Truth Social platform on Wednesday, urging the Fed to reduce interest rates as tariffs begin to affect the economy adversely. The US spot Bitcoin Exchange Traded Funds (ETFs) have recorded three straight days of inflows this week, which suggests a decrease in selling pressure.
President Trump’s participation in the Blockworks Digital Asset Summit on Thursday represents a pivotal moment as it marks the first instance a sitting president has spoken at a cryptocurrency conference. This reflects increasing acknowledgment of the crypto sector by top government officials.
Optimism Among Crypto Investors Amid Russia-Ukraine Talks
On Tuesday, Presidents Trump and Putin discussed a ceasefire regarding energy infrastructure strikes in the ongoing Ukraine conflict. Additionally, Ukrainian President Volodymyr Zelenskiy and Trump agreed on collaborative efforts to conclude the prolonged war, which has positively impacted investors’ confidence in riskier assets such as Bitcoin. Nonetheless, traders should remain vigilant regarding the escalating tensions in Gaza, with the Israeli military initiating limited ground operations following a breakdown of the ceasefire.
Trump Requests Fed Rate Reduction
On Wednesday, Bitcoin’s price climbed nearly 5% to an intraday high of $87,000, spurred by the Fed’s announcement to keep interest rates steady. Analyst Haresh Menghani from FXStreet noted that the Fed signaled it would implement two rate cuts by the year’s end, although it adjusted its growth forecast due to potential economic impacts from Trump’s trade policies.
Trump then posted a message on Truth Social stating, “The Fed would be MUCH better off CUTTING RATES as U.S. Tariffs begin to ease into the economy. Do the right thing. April 2nd is Liberation Day in America!!!”
Trump to Address digital Asset Summit in New York
Thursday’s Digital Asset Summit, featuring President Trump’s address, is historic and indicates growing recognition of the cryptocurrency industry. This event follows Trump’s announcement of a strategic Bitcoin reserve, which uses seized Bitcoin as part of his goal to establish the US as a leader in the crypto space.
The summit in New York includes discussions about the future of digital assets, with notable participants from both the crypto industry and government officials, showcasing the administration’s efforts to endorse and regulate the sector.
Institutional Demand for Bitcoin Improves
Institutional interest in Bitcoin is showing slight improvement this week, as indicated by Coinglass, which reported a net inflow of $11.80 million into Bitcoin spot ETFs for the third consecutive day. Continuous inflows could further bolster Bitcoin’s price, reflecting a decrease in sell-side pressure.
Upcoming Bitcoin Price Forecast: Targeting $90,000
Having surpassed its 200-day Exponential Moving Average (EMA) on Wednesday, Bitcoin reached a high of $87,000 before slightly retracing. If Bitcoin can sustain support around the 200-day EMA, it may push towards the significant psychological level of $90,000.
Should the price fail to hold near the 200-day EMA at $85,540, it risks declining towards its next support level of $78,258. Technical indicators suggest a mixed sentiment, with the Relative Strength Index showing slight bearish momentum while a bullish crossover in the Moving Average Convergence Divergence indicates potential upward movement.
