The Footprint of Trump Behind the Scenes of Bitcoin's Fall; Has Cryptocurrency Become a Victim of the U.S. President's Policies?

📈Factor 1: Trump's contradictory statements about the cryptocurrency reserve fund

On Monday, March 4th, Donald Trump announced a new plan to create a strategic cryptocurrency reserve fund in the United States. This fund was intended to include Bitcoin, Ethereum, Ripple, Solana, and Cardano.

This news acted like a spark in the market! Bitcoin grew by over 13% in 48 hours, rising from $78,200 to $95,000, its highest monthly price. Ripple surged by 40%, and Cardano almost doubled. This sudden growth in a bearish market prompted traders to take profits, which triggered a wave of selling.

However, Trump's stance took a 180-degree turn! On Friday, March 17th, David Sachs, a cryptocurrency and AI policy advisor to the government, left the cryptocurrency summit and clarified the government's position, stating that there had been a misunderstanding about the reserve fund and that it was only intended for Bitcoin, not other cryptocurrencies like Ethereum, Ripple, Solana, and Cardano.

This was not the only bad news! He also revealed that the U.S. government currently holds about 200,000 Bitcoins (worth more than $17 billion) obtained through legal seizures and plans to integrate Bitcoin with the national financial infrastructure.

Immediately after these statements were released, the market took a sharp downturn. Investors, who had been hopeful for market growth, now faced fear and uncertainty.

Bitcoin fell below $86,000, and other cryptocurrencies lost much of their recent gains.

Some experts believe these fluctuations are the result of a political game to gain more control over the cryptocurrency market. But the key question is: Was this just a temporary correction, or is Bitcoin on track for a bigger crash?

📉📊📈Factor 2: Sudden changes in U.S. trade tariffs

On Monday, March 4th, Trump announced new updates to U.S. tariffs, which this time would apply to all imports from China and Mexico, shaking global financial markets and causing widespread sell-offs in risky assets, including cryptocurrencies. Bitcoin retreated from its previous gains, reaching its lowest weekly level of $81,400 by Tuesday.

In response to retaliatory actions from China, Canada, and domestic pressures, the government partially reversed the tariffs. On March 16th, the U.S. Secretary of Commerce announced exemptions for imports from Mexico and a one-month delay for tariffs on automobile imports.

This political retreat triggered a recovery wave for Bitcoin, as the cryptocurrency closed Thursday above the $89,000 mark.

💰Factor 3: Economic concerns and fears of rising interest rates

On Friday, March 17th, the latest U.S. non-farm payroll (NFP) report showed an increase in the unemployment rate, raising concerns about inflation growth and the possibility of higher interest rates. These macroeconomic factors put further downward pressure on Bitcoin. The fear of rising interest rates caused capital to exit the cryptocurrency market.

📊Technical Analysis: Bitcoin's potential path in the upcoming week

This week is a critical one for Bitcoin, as buyers need to defend the $85,000 support level to maintain the bullish outlook for Bitcoin.

If Bitcoin stabilizes around the $86,000 level, it would indicate the market's resistance to recent developments.

On the other hand, the Fear and Greed Index being in the "Fear" zone shows that traders are becoming more cautious and will closely monitor economic indicators, Federal Reserve news, and any policy announcements related to digital assets, likely determining the next market direction in the coming days.

If Bitcoin loses the $85,000 support level, selling pressure will increase significantly, and the price is likely to move toward the next key support level around $73,000.