Cryptocurrencies Bitcoin, Ethereum, and Dogecoin experience losses despite Trump’s pledge to support crypto capital.
Bitcoin and other leading cryptocurrencies experienced a pullback on Thursday, with prices fluctuating despite President Donald Trump’s encouraging words for the industry during an event. Bitcoin reached a high of $86,000 before dropping to $83,647.19, while Ethereum struggled to maintain momentum after surpassing $2,000, retreating to the upper $1,900 range.
During the Blockworks Digital Asset Summit, Trump advocated for Congress to pass stablecoin legislation and reaffirmed his commitment to establishing the United States as the global leader in Bitcoin and cryptocurrencies. Despite Trump’s support, over $187 million was liquidated from the cryptocurrency market in the last 24 hours, with bullish bets comprising $129 million of that total.
The market sentiment shifted from “Neutral” to “Fear” following the Federal Reserve’s recent policy decisions, as reflected by the Crypto Fear and Greed Index. Bitcoin’s Open Interest decreased by 3.85% over the past 24 hours, but derivatives traders appeared to take advantage of the dip, with the percentage of traders placing bullish bets on Bitcoin rising to 51% according to the Long/Short ratio.
Amidst the price fluctuations, XRP, Bonk, and Sonic emerged as the top gainers over the past 24 hours, with price increases of 9.53%, 9.33%, and 8.33% respectively. Despite these gains, the global cryptocurrency market capitalization saw a 2.27% decline, totaling $2.77 trillion.
Stocks also experienced a correction following a rally the previous day, with the Dow Jones Industrial Average dropping 0.03% to close at 41,953.32, the S&P 500 falling 0.22% to 5,675.29, and the Nasdaq Composite declining by 0.33% to 17,691.63. Blue-chip indices have struggled in March, with the Dow and S&P 500 losing 4.3% and 4.8% respectively since the beginning of the month.
Analysts at CryptoQuant noted that the Bitcoin Bull Score Index hit a two-year low of 20, suggesting a prevailing bearish trend rather than a short-term correction. According to historical data, Bitcoin has only sustained significant price rallies when the Bull Score is above 60. However, Arthur Hayes, co-founder of BitMEX and Chief Investment Officer at Maelstrom Fund, identified a positive trend in his custom U.S. bank credit supply index, indicating a potential shift towards a more bullish outlook for BTC. Hayes mentioned that while the market may not be done correcting, the odds are leaning towards a more bullish scenario.
