Bitcoin Plunges After Trump’s Crypto Summit

Bitcoin peaked at $87,453 during early trading in New York but quickly dropped to $83,655 after former U.S. President Donald Trump appeared via video at the Digital Assets Summit in New York.

Earlier, rumors spread on platform X that Trump might announce a capital gains tax exemption for certain cryptocurrencies or make a statement favoring the U.S. strategic Bitcoin reserves. However, these expectations were quickly dashed when his speech did not mention any such policies. Instead, he pledged not to sell government-confiscated Bitcoin and urged Congress to establish clear regulations for stablecoins.

Trump’s most positive statement was his ambition to position the U.S. as a global leader in cryptocurrency. He emphasized:
“Together, we will make America the undisputed Bitcoin superpower and the cryptocurrency capital of the world.”

As usual, the crypto market reacted strongly to rumors. Traders seemed to expect Trump to take decisive action in support of Bitcoin. When that did not happen, they immediately sold off, causing Bitcoin’s price to plummet.

According to market analyst Aksel Kibar, Bitcoin still has the potential to correct down to $73,700. He noted:
“The long-term BTC/USD chart indicates that the retracement toward $73,700 remains a possibility. What happens next will determine price action in the coming months.”

However, Bitcoin’s recent rally was not solely driven by expectations surrounding Trump. On March 19, BTC responded positively after the release of the FOMC meeting minutes, along with confirmation from Federal Reserve Chair Jerome Powell that the Fed would slow down quantitative tightening (QT) and still consider two rate cuts in 2025.