TLDR
- Bitcoin surged to $66,000 during Donald Trump’s extended State of the Union address as he emphasized economic strength.
- Digital asset markets saw $52 billion in inflows during the speech, marking heightened trading activity.
- Bitcoin subsequently retreated to approximately $65,000 as momentum from the initial rally subsided.
- Trump referenced 53 stock market records and emphasized substantial international capital flows into America.
- Market observers noted that disappointing employment figures and technology sector challenges continue weighing on crypto markets.
Digital currency markets responded swiftly as Donald Trump delivered his longest State of the Union address, with Bitcoin price pushing toward $66,000 before moderating as the trading day progressed and market dynamics evolved.
Bitcoin price action throughout presidential address
Bitcoin gained 3% to reach $66,000 during the approximately two-hour presidential address, with market participants reacting to optimistic economic declarations. The cryptocurrency subsequently settled just above $65,000 as initial momentum softened.
Market observers noted that traders responded enthusiastically to Trump’s assertion that “everyone’s up, way up,” driving renewed interest across trading platforms. Exchange desks recorded rapid capital inflows throughout the speech.
CoinGecko data revealed that market participants deployed $52 billion into cryptocurrency markets during Trump’s address. This substantial capital movement elevated trading volumes across leading exchanges.
Trump emphasized 53 record stock market closes since election day and underscored growing international investment flows. He declared that $18 trillion has flowed into American markets.
Trading desks reported that market participants paid close attention to these statements, which echoed earlier projections from economist Ed Yardeni. Both spot and derivatives platforms experienced elevated activity levels.
Bitcoin remains 49% below its October high of $126,000, with recent price movements reflecting evolving market expectations. Volatility remained contained despite periodic bursts of price action.
Bitcoin price swings and market sentiment dynamics
Market participants continued monitoring disappointing employment data revealing over 100,000 January layoffs, which dampened earlier optimism. This figure represented the weakest January performance since 2009.
Market analysts noted these statistics generated caution across risk asset classes, with Bitcoin experiencing sharp reactions. Capital flows then stabilized as investors awaited additional catalysts.
Nansen’s Aurélie Barthere observed that decelerating regulatory progress and technology sector fragility contributed to bearish momentum. She emphasized that these elements reinforced existing downward price trends.
Additional selling pressure emerged from concerns about artificial intelligence disruption, which unsettled market participants. A fresh Citrini Research analysis triggered technology stock declines.
The research piece, named “The 2028 Global Intelligence Crisis,” anticipated significant white-collar employment losses. It also predicted debt challenges and a 38% decline in the S&P 500.
BlackRock’s leading technology ETF declined 3% following circulation of the report among traders. Major technology companies including Microsoft, Oracle, and Palantir pressured the benchmark.
Kaiko’s Laurens Fraussen suggested AI would transform employment landscapes through gradual transitions rather than sudden disruption. He emphasized the importance of workforce adaptation.
He projected that substantial employment losses would trigger US government intervention similar to pandemic-era responses. He suggested such measures could benefit Bitcoin.
Future crypto prospects following Trump’s speech
BitMEX‘s Arthur Hayes suggested earlier this month that US monetary expansion could drive Bitcoin higher. He cautioned that precise timing remains challenging to predict.
Hayes argued that currency supply growth would encourage traders to seek inflation-hedge assets. He observed that price movements can accelerate rapidly.
Bitcoin was trading marginally above $65,000 at publication time. Market activity remained robust as participants digested fresh economic data points.
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