Bitcoin Surges Past $94,000 as Trump Extends Gradual Rally

Bitcoin has extended its gradual rally and surged past $94,000 in minutes as traders reacted to President Donald Trump's support for the Federal Reserve

President Donald Trump's support for Federal Reserve Chair Jerome Powell and a more conciliatory trade stance with China helped to extend Bitcoin's gradual rally on Tuesday, seeing the flagship cryptocurrency surge past $94,000 in minutes.

The price surge came just days before the Strategic Bitcoin Reserve deadline and amid rising market optimism.

Trump's Hopes For Stability

Confirming that Powell will remain in his position helped to ease fears of political pressure on central bank policy, rendering optimism among investors and boosting confidence across financial markets.

"We’re working well with the Fed, and I want to point out that Chair Powell and I agree on the need for growth and stability," Trump said.

Bitcoin responded directly with a 5.62% gain, seeing the world's leading cryptocurrency soar to as high as $93,910 as investors viewed the statement as a final nod toward policy stability.

"The president's comments on continuing to work with the Fed and reaching a trade deal with China helped to boost market sentiment, which in turn had a strong impact on Bitcoin's price," said Mikhael Ivanov, market analyst at Webull.

Reserve Deadline & Federal Issues

Ultimately, the president's optimistic tone and willingness to cooperate with China on trade had a positive knock-on effect on Bitcoin, which is often viewed as a haven asset during times of economic uncertainty or geopolitical unrest.

"The 60-day countdown tied to Trump's executive order on the Strategic Bitcoin Reserve is also nearing its end, with less than two weeks remaining," added Vetle Lunde, head of research at K33, in his latest note.

He also pointed out that the ongoing debate over the Federal Reserve's independence is helping to fuel renewed optimism in Bitcoin's price action.

"The House Democrats' investigation into the Fed's role in climate change is also a hot topic, but it's not clear yet what impact it will have on Bitcoin's price trend."

Tariffs May Be Reviewed

Meanwhile, Trump also suggested that tariffs on Chinese goods may be reviewed, with new talks likely soon. This had traders optimistic that the months-long saga of escalating trade friction and uncertainty could be drawing to a close.

"We're making great progress with China, and I think we'll be able to work out a trade deal that benefits both countries," Trump said during a press conference at the White House.

"We're planning to have more trade talks with China soon, and we'll be able to discuss the tariffs at that time."

The comments come as the U.S. and China continue to work toward a trade agreement to end the tariff war that has raged for nearly two years. The two sides have held several rounds of talks this year, but they have yet to reach a final deal.

Investors reacted quickly to the news, viewing it as a potential end to months of uncertainty surrounding global trade that has weighed on markets and the global economic outlook.

"The president's comments on tariffs and trade were well received by investors, who see them as a sign that the U.S. and China are making progress toward a trade deal," said Quincy Kwok, market analyst at AvaTrade.

"This could help to stabilize markets and boost confidence, which could have a positive impact on Bitcoin's price."

Bitcoin Rallies Through Resistance

The dramatic rise from under $91,500 to $93,000 in just minutes left traders stunned, with Bitcoin commentator Michael Sullivan describing it as "the craziest one-minute candle" he’s ever seen on the charts.

Crypto trader Crypto General said the move confirmed a long-awaited breakout, while another analyst, known as Ted, predicted Bitcoin is "going to catch up" with gold, hinting at a return to the $100,000 level last seen in early February.