Bitcoin continued its strong rally this week, surpassing $94,000 on Wednesday morning, amid an improvement in market sentiment following positive comments from US President Donald Trump on monetary policy and trade relations with China.
Bitcoin rose more than 3% in late Tuesday trading before settling at $94,198 at 8:26 a.m. GMT, according to market data. This breakout marks the highest level the currency has reached in more than a month, having surpassed $90,000 on Monday.
Trump's statements calm the markets.
This momentum was supported by statements by President Trump, who confirmed that he "does not intend to fire" Federal Reserve Chairman Jerome Powell, despite previously describing him as a "big loser." During a press conference, Trump added, "I would like to see him be more active in cutting interest rates," indicating his desire to ease monetary policy.
Trump also indicated his country's willingness to negotiate with China in a "very nice" manner, asserting that tariffs could be significantly reduced if an agreement is reached, a move markets interpreted as a sign of easing global trade tensions.
Record inflows into Bitcoin funds
Bitcoin exchange-traded funds (ETFs) in the United States saw net inflows of $936 million on Tuesday, marking the third-highest daily inflows this year, a sign of investor confidence in the continued upward momentum.
Technical indicators support the upward trend.
Technically, TradingView data indicates that Bitcoin has entered a "price discovery" phase without clear prior resistance. The Relative Strength Index (RSI) reached 79.44, placing the currency in overbought territory, while the Average Directional Index (ADX) reached 92.8, indicating the strength of the current trend. Market volatility also increased with the Bollinger Bands expanding by 18.05%, supporting expectations of a continued upward trend.
New SPAC launched with support from investment giants
In a related development, Cantor Fitzgerald announced the launch of a special purpose acquisition company (SPAC) called Cantor Equity Partners, headed by Brandon Lutnick, son of the US Secretary of Commerce. This initiative will be backed by major companies such as SoftBank, Tether, and Bitfinex. The company has already raised $200 million, with plans to merge with a startup called 21 Capital, which will hold a massive $3 billion in Bitcoin reserves.
This move follows in the footsteps of pioneering company MicroStrategy, which is converting its Bitcoin reserves into equity assets at a valuation of $85,000 per Bitcoin. The group is expected to raise over $550 million additionally through bond and equity issuance.
