Bitcoin has witnessed a significant rise, driven by statements from U.S. President Donald Trump, who denied any intention to dismiss Federal Reserve Chairman Jerome Powell, thereby removing the uncertainty surrounding the independence of the central bank. Bitcoin rose by 3% to reach $92,727, while other cryptocurrencies like Ether, Ripple, and Solana also experienced similar gains.
Bitcoin had previously surpassed the $90,000 level, indicating a potential decoupling from its close ties to stocks. However, Trump’s statements, along with increasing hopes for easing trade tensions between the U.S. and China, brought it back in line with traditional markets. U.S. Treasury Secretary Scott Pescente added to this optimism, emphasizing the need to avoid a destructive trade war.
The cryptocurrency market also received an additional boost from reports of talks between major companies to establish a $3 billion special purpose acquisition company, which is expected to invest in digital currencies.
However, analysts warn of the potential for a market correction after this continuous rise, pointing out that Bitcoin has entered the “overbought” territory. Some expect a possible decline to the $88,000 level.
