Bitcoin price increases in anticipation of Trump’s speech at cryptocurrency summit
Bitcoin’s value has seen a significant surge in anticipation of US President Donald Trump’s address at the Digital Asset Summit (DAS) in New York. The price of Bitcoin climbed over 3% on Thursday, reaching above $86,000 (£66,382), experiencing a 7% increase over the past week, as reported by CoinGecko data. This uptick in value comes on the heels of a recent policy move by Trump in early March, where he signed an executive order to establish the US Strategic Bitcoin Reserve (SBR). This order specifies that the Bitcoin deposited into the reserve will not be sold, but rather held as a long-term strategic asset to reinforce the financial stability of the United States.
Among the notable speakers at the DAS event are Michael Saylor of Strategy (previously known as MicroStrategy), Robbie Mitchnick, the head of digital assets at BlackRock, and Giang Bui, the head of US equities & exchange-traded products at Nasdaq. Trump’s presence at the summit was confirmed after statements from Bo Hines, the executive director on digital assets for President Trump, during the earlier part of the DAS event. Hines reaffirmed the administration’s dedication to amassing Bitcoin for the Strategic Bitcoin Reserve, emphasizing President Trump’s commitment to accumulating assets for the benefit of the American people rather than depleting them.
Reflecting on the advancements within the cryptocurrency industry, Jason Yanowitz, Blockworks co-founder, expressed amazement at the progress made. He noted how in the early days of Blockworks, it was a challenge to attract participants from traditional banks to attend events. However, the landscape has transformed significantly, with a sitting US president now engaging with over 2,500 institutional participants at events like DAS. This evolution underscores the remarkable journey and positive growth of the cryptocurrency industry in recent years.
During his 2024 presidential campaign, President Trump advocated for positioning the US as the “world’s crypto capital.” This vision was further reinforced during his appearance at the Bitcoin 2024 conference in Nashville in the summer of 2023, where he hinted at establishing a national Bitcoin reserve. Since taking office, Trump has taken concrete steps to support digital assets, such as signing executive orders directing regulatory bodies to accommodate such assets, setting up a White House crypto advisory team, and establishing both the US Strategic Bitcoin Reserve and Digital Asset Stockpile. Additionally, key regulatory positions have been filled with pro-crypto individuals, including appointments to the SEC and Treasury Department.
Bitcoin’s recent price increase aligns with the decision of the US Federal Reserve to maintain its benchmark federal funds rate at 4.25%-4.50%. This decision marks the second consecutive pause following three rate cuts at the end of 2024. The latest economic projections from the Fed indicate a slowdown, with reduced GDP growth estimates for 2025, 2026, and 2027. Notably, the Fed’s “dot plot” forecasts two rate cuts by the end of 2025, highlighting potential shifts in monetary policy moving forward.
As the Federal Reserve adjusts its quantitative tightening (QT) measures, with plans to slow the pace of balance sheet reduction in April, this could have implications for liquidity and capital flows within the financial system. A shift toward quantitative easing (QE) could lead to increased flows into riskier assets like Bitcoin. This evolving landscape illustrates the interconnected nature of monetary policy decisions, economic projections, and the valuation of digital assets like Bitcoin.
