Bitcoin rises above 90K ahead of White House crypto summit

Bitcoin price continued to gain strength on Wednesday, rising above the key $90,000 level. If BTC price declines, support can be found at $78,000, while resistance may be encountered at $95,000. 

Ethereum price also edged higher on Wednesday, rising above the $2,220 level. If Ethereum price declines, it may encounter support near $2,000, while if it increases, it may encounter resistance near $2,600.

Bitcoin price registered a new all-time high of $109,880 in January but has since been under pressure by increased risk aversion sentiment. 

The US government is expected to adopt a pro-crypto regulatory and fiscal policy, boosting cryptocurrency prices. More importantly, US President Donald Trump has often mentioned plans of building a Bitcoin strategic reserve. Over the weekend, Trump reaffirmed on his social media that he plans to establish a national cryptocurrency reserve. Trump announced that he will establish a national crypto reserve composed of multiple cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Cardano (ADA), and Solana (SOL). Trump’s announcement created a crypto market hype that boosted most major cryptocurrencies and especially those mentioned specifically in Trump’s announcement. On Monday, however, the hype created over Trump’s announcement faded and Bitcoin and other major cryptocurrencies plummeted on profit taking. 

Later on Monday, Trump announced that he will be hosting the first white house crypto summit in history. The event is scheduled to take place on Friday and will be attended by major members of the crypto industry, including prominent founders, CEOs and investors. Bitcoin price rallied after Trump’s announcement, on investors’ expectations of future BTC adoption as a mainstream currency. 

Most major cryptocurrencies are under pressure on concerns that US President Donald Trump’s trade policies may start global trading wars. Trump has been using threats of imposing trade tariffs as a negotiation tool to further his agenda with other countries. The uncertainty over Trump’s future policies and trade tariffs is generating a risk aversion sentiment, putting pressure on crypto markets. Trump has threatened that he will announce reciprocal tariffs on many countries, which would raise US import taxes to match those imposed by the country’s other trading partners. In his address to the US Congress early on Wednesday, Trump confirmed that he plans to impose reciprocal tariffs, which will take effect on April 2.

Trump’s tariff plans change rapidly causing confusion and volatility in markets. Trump’s plans of imposing 25% tariffs on Canada and Mexico had been postponed for a month after both countries agreed to tighten border activities. On Monday, however, Trump stated that he intends to go ahead with imposing tariffs on his neighboring countries and the tariffs against Canada and Mexico took effect on Tuesday. Trump has also imposed additional 10% tariffs on China starting on Tuesday, bringing Chinese duties to a total of 20%. 

Trump’s tariffs may spark global trade wars and are causing turmoil in markets. Trump’s tariffs are likely to raise global inflation and lower economic outlook, thus promoting a risk aversion sentiment that puts pressure on crypto markets. The Canadian government has announced that they would implement 25% retaliatory tariffs on US imports starting on Tuesday. Trump escalated matters further, threatening Canada with increased reciprocal tariffs. China retaliated to the increased US duties by announcing 10%-15% tariffs on certain US imports, such as farm products, starting from March 10. 

US President Donald Trump’s plans to broker a peace treaty between Russia and Ukraine have so far been fruitless. On Friday, Trump had a heated meeting with Ukrainian President Volodymyr Zelenskyy in the White House. The clash confirmed that a peace treaty is not yet on the horizon, putting pressure on risk assets. On Sunday, however, European leaders gathered to discuss the situation in Ukraine. British Prime Minister Keir Starmer stated that European leaders have agreed to draft a peace proposal between Russia and Ukraine and send it to Washington.

Cryptocurrency prices are also affected by central banks’ interest rates. High interest rates stifle economic growth, putting pressure on crypto markets. The US Federal Reserve held interest rates steady at its January meeting, after delivering three consecutive rate cuts in 2024. FOMC policymakers voted unanimously to maintain the federal funds range to a target range of 4.25% to 4.50%.

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Written by:
Myrsini Giannouli

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