Bitcoin continues its upward trend as Trump pledges to turn America into a "Bitcoin superpower"

The price of Bitcoin reached 84,500 USD, attempting to consolidate a higher support zone as Wall Street opened on March 20. The bulls succeeded in breaking a significant downward trend.

Data from TradingView shows that BTC/USD has returned to levels above 86,000 USD. Bitcoin continues its upward momentum from the previous day thanks to positive macroeconomic signals from the Federal Reserve.

In addition, rumors that the U.S. government may make a new statement regarding cryptocurrency have helped the price of BTC reach its highest level in two weeks.

Trump commits to making the U.S. a "Bitcoin superpower"

President Donald Trump is scheduled to give an online speech on the third day of the Blockworks Digital Asset Summit 2025 event in New York.

In his speech, Trump emphasized the commitment not to sell the Bitcoin seized by the US government and to end restrictive regulatory mechanisms like Operation Chokepoint 2.0. However, he did not provide any new information about whether the US could buy more BTC.

Trump declared:

"Together, we will make America an undeniable Bitcoin superpower and the cryptocurrency capital of the world."

After this announcement, BTC has recovered above two important moving averages, including the 200-day simple moving average (SMA 200) – a key support factor in bull markets.

Analyst Rekt Capital points out that Bitcoin has also reclaimed the 200-day exponential moving average (EMA 200), a long-term indicator of investor sentiment towards BTC.

"Bitcoin has just closed the daily candle above the EMA 200 and is currently testing this line as a new support zone," Rekt Capital wrote on platform X.

Additionally, another important technical signal has appeared as the Relative Strength Index (RSI) of Bitcoin has broken the downtrend since November 2024.

"Bitcoin has broken the downward trend of the daily RSI that has lasted since November 2024," Rekt Capital confirmed.

Will the market "wake up" before the Fed's tough stance?

The trading company QCP Capital is cautious about the market outlook.

They warn that the recovery of risky assets following the Fed's decision may only be temporary.

"In addition to short-term excitement, the Fed has exhibited a rather cautious tone. Policymakers have lowered the economic growth forecast to 1.7% ( down by 0.4% ), while raising the inflation forecast to 2.8%, indicating that the risks of stagflation ( slow growth but high inflation ) are increasing."

QCP also noted that the dot plot ( of the Fed's interest rate forecast ) shows a tougher stance compared to December, with the number of officials predicting no interest rate cuts in 2025 rising to four.

Data from the FedWatch Tool shows that the market still expects the first rate cut to occur no earlier than June.

"Is this recovery sustainable, or will investors soon realize that the risks are still present?" QCP asks.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions.

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