Bitcoin's price movement today has been influenced by a combination of factors, including tightening USD liquidity and recent comments from the Trump administration. Arthur Hayes, chief investment officer at Maelstrom, highlighted the increase in the U.S. Treasury General Account's cash balance, which has risen from $623 billion to $800 billion in just four weeks. This tightening of dollar liquidity is generally unfavorable for asset classes like cryptocurrencies. Additionally, the Trump administration's cautious approach to creating a Bitcoin reserve has disappointed investors, as the administration is opting to "evaluate" the feasibility rather than taking swift action. Jim Bianco, president and macro strategist at Bianco Research, noted, "Evaluate/Study is what Washington does when they don't want to do something."
The market has also been affected by technical factors, with Bitcoin's price falling below $100,000 during overnight trading. This decline was partly attributed to a bearish divergence in the 14-week relative strength index (RSI), a pattern reminiscent of the 2021 market top. Furthermore, the SEC's decision to downsize its crypto enforcement unit amid regulatory pullbacks under the Trump administration has added to the uncertainty. The SEC's shift towards easing regulations could have long-term implications for the crypto market, but in the short term, it has contributed to the volatility.
Bitcoin's price has seen a slight decrease of 0.13% today, currently standing at $97,676.45. The cryptocurrency reached a high of $98,828.83 and a low of $97,251.81 during the day.