Why is the crypto market surging today? Trump’s $1.2 trillion plan and Bitcoin’s rise
Bitcoin surges! Discover why the crypto market is booming today, fueled by Trump's $1.2 trillion plan. Market analysis and price predictions inside.
Bitcoin surges! Discover why the crypto market is booming today, fueled by Trump's $1.2 trillion plan. Market analysis and price predictions inside.
The market hates uncertainty, and the last four days have proven this point. As the specter of a prolonged US government shutdown loomed, investors succumbed to panic, triggering a brutal sell-off over the weekend. Bitcoin had plummeted to a concerning intra-day low of $73,000, dragging down the majority of altcoins in its wake, with Ethereum (ETH) testing the critical $2,200 zone.
The official signing of the bill by Donald Trump acted as an immediate bullish catalyst. By validating this liquidity injection and guaranteeing government operations, the president reassured institutional investors. The result: whales took advantage of this “dip” to accumulate massively, triggering a powerful technical rebound. BTC erased its losses to flirt with the $76,000 resistance, confirming that the underlying trend remains resilient despite macroeconomic volatility.
However, be careful not to declare victory too quickly. While the market is celebrating in the short term, savvy traders are keeping an eye on the calendar. This $1.2 trillion spending bill resolves most issues, but it only funds the Department of Homeland Security (DHS) until February 13, 2026. A new political deadline is therefore fast approaching, and with it, the risk of another standoff between Republicans and Democrats.
In this context, the market could remain turbulent in the coming days. Analysts are also closely monitoring the nomination of Kevin Warsh to head the Federal Reserve, a profile focused on inflation that could influence monetary policy. For now, the sentiment is one of relief, but the market structure suggests we’re not immune to another liquidation wick if negotiations on immigration and the DHS turn sour again in mid-February.
With this strong comeback above $76,000, Bitcoin is sending a positive technical signal, invalidating the short-term bearish scenario that was forming over the weekend. Maintaining above this pivot is crucial to hope for a new ATH (All-Time High) in the coming weeks. However, the $78,000 zone remains a major resistance to break to confirm the bull run.
So, is this the time to enter or will the market offer us one last retracement before the explosion? Buy volumes on Bitcoin ETFs over the next 24 hours will be decisive in validating the continuation of this bullish movement.
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