Key Points
- Bitcoin (BTC) price sees an increase amid ongoing trade wars, with potential catalysts for further growth.
- The first-ever crypto summit in Washington and the US nonfarm payrolls data could influence BTC price.
Bitcoin’s value fluctuated on Thursday, as investors adopted a cautious approach in light of the continuing trade disputes between the US and its major trading partners.
Bitcoin (BTC) traded at $90,000, a 15% increase from its lowest point this month, while US stock indices such as the Dow Jones, Nasdaq 100, and S&P 500 fell by over 1%.
Factors Influencing Bitcoin’s Price
Two significant events could potentially drive Bitcoin’s price to $100,000 in the coming days. Firstly, the inaugural crypto summit in Washington hosted by Donald Trump, featuring industry leaders like Brad Garlinghouse of Ripple, Brian Armstrong of Coinbase, and Paolo Ardoino of Tether.
The most significant result of the summit could be the establishment of the Strategic Bitcoin Reserve by Donald Trump. Such a reserve could potentially increase Bitcoin’s price due to the government’s substantial balance sheet size.
One strategy could be to convert the Bitcoin currently held by the government into reserves. The government currently possesses 198,109 coins, valued at over $17.9 billion. Another strategy could be to support the Cynthia Lummis bill, which suggests the government purchase and hold 200,000 coins annually for five years, a move that could create significant demand.
David Sacks, the AI and crypto expert, advocated for these reserves, noting that the US government had sold 195,000 coins in the past decade. These sales generated $366 million, significantly less than their current value of $17 billion.
The Impact of US Nonfarm Payrolls Data
Another possible catalyst for Bitcoin’s price on Friday could be the US nonfarm payrolls data. This report will offer further insights into the state of the American economy during a period of significant challenges.
Wall Street analysts predict the NFP report will reveal the economy added 159,000 jobs in February, with the unemployment rate remaining at 4.0%. There is a chance that the jobs report will not meet expectations due to job cuts by Elon Musk. An ADP report released on Wednesday indicated the private sector added only 77,000 jobs in February.
A disappointing NFP report could positively impact Bitcoin’s price as it could increase the chances of the Fed implementing more rate cuts.
Bitcoin Price Technical Analysis
The weekly chart indicates that Bitcoin’s price is showing signs of recovery after dropping to a low of $78,100 last week. It has stayed above the ascending trendline that links the lowest swings since Aug. 5.
Bitcoin has also formed two hammer patterns. A hammer candlestick consists of a long lower shadow and a small body and is one of the most bullish reversal patterns. It also remains above the 50-day moving average.
Therefore, Bitcoin’s price is likely to continue its upward trajectory as bulls aim for the key resistance level at $100,000. This prediction will become invalid if it falls below the support at $80,000.