How Trump Influences Bitcoin’s Price
FXOpen
In a previous analysis of the BTC/USD chart titled "Bitcoin Holds Above $100K. For Now?", we hinted at the cryptocurrency market’s vulnerability to a downturn following heightened volatility triggered by Trump’s inauguration (Arrow A).
The BTC/USD chart shows that after this event:
→ B: Bitcoin’s price saw a sharp decline after Trump imposed high tariffs on Canada, China, and Mexico. Financial markets reacted with shock, causing BTC/USD to drop over 12% in just two days, leading to the largest liquidation event in cryptocurrency history.
→ C: Bitcoin later recovered as Trump delayed tariffs on Mexico and China. Additionally, market sentiment improved after the U.S. president announced plans to establish a sovereign wealth fund within a year. Forbes speculated that this fund could potentially be used by the U.S. government to acquire Bitcoin.
BTC/USD Technical Analysis
Bitcoin’s price movements indicate a bearish trend, highlighted by the red descending channel. However, signs of buying activity could offer hope to market participants:
→ A test of the Order Block (marked in purple).
→ February’s low may serve as a key support trendline (marked in orange), originating in 2024.
→ D: Bears failed to sustain the decline after breaking below the 95,750 level.
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