Bitcoin reclaims $94K, US seeks to ease trade, Fed tensions persist

Bitcoin extended this week’s rally to Wednesday, breaching $94,000, as markets reacted positively to US President Donald Trump’s statement that he will not interfere with the Federal Reserve and is ready to negotiate with China.

The top-ranked crypto by market cap climbed more than 3% late Tuesday before paring gains to trade at $94,198 at 8:26 AM UTC. Bitcoin’s price rally took charge at the start of the business week when it topped $90,000 for the first time in more than 30 days. 

Trump has no intention of firing Powell

The BTC price rally came against the backdrop of Trump’s comments that he had “no intention of firing” Federal Reserve Chair Jerome Powell. Markets had been on edge after the US president called Powell “a major loser.” The White House had also said it could exercise legal options to remove him from office.

“I would like to see him be a little more active in terms of his idea to lower interest rates,” he said during a press briefing in the Oval Office yesterday.

Trump first nominated Powell in 2017 during his first term. His successor, Joe Biden, reappointed Powell to a second four-year term in 2021.

Signals of progress on the trade front also added to the crypto market’s 24-hour 6.5% market cap uptick. Treasury Secretary Scott Bessent, speaking at a closed-door investor summit on Tuesday, said both Beijing and Washington recognize the economic toll and will need to find a path toward de-escalation.

Trump told reporters that he would approach negotiations with Beijing in a “very nice” manner. He admitted that tariffs would not drop to zero, but would fall significantly if a deal could be reached.

Bitcoin showing signs of a long-term bull run

This business week, Bitcoin’s price action defied its historical pattern of moving in tandem with US equities. The crypto decoupled from major stock indices on Monday when it crossed $90,000. However, it returned to a correlated movement after the S&P 500 index counted gains in Tuesday’s market session.

US-listed spot Bitcoin exchange-traded funds (ETFs) saw a combined $936 million in net inflows on Tuesday, the third-highest daily total this year. Analysts attributed the positive inflows in ETFs to Bitcoin’s continued upward momentum.

According to technical indicators on TradingView, BTC is currently in a full price discovery phase with no historical resistance overhead. The Relative Strength Index (RSI) is at 79.44, which is overbought territory, but analysts note that these levels can be sustained during aggressive bull cycles. 

The Average Directional Index (ADX) stands at 92.8, while the expanding Bollinger Bandwidth of 18.05% signals heightened volatility leaning towards the bulls.

Bitcoin price chart. Source: TheTradeWolf via TradingView

Cantor Fitzgerald-backed Bitcoin SPAC launched

Meanwhile, Cantor Fitzgerald has announced a major new investment initiative through a special purpose acquisition company (SPAC). The vehicle, named Cantor Equity Partners, was founded by Brandon Lutnick, son of US Commerce Secretary Howard Lutnick and chair of Cantor Fitzgerald. 

Several financial firms, including SoftBank, Tether, and Bitfinex, will reportedly support the initiative.

As reported by Cryptopolitan, the SPAC raised $200 million in January and will merge with a newly formed company, 21 Capital, which will be seeded with $3 billion in Bitcoin. The investment closely follows the model pioneered by MicroStrategy, converting BTC into equity assets at a valuation of $85,000 per coin.

Tether is contributing $1.5 billion to the project, while Bitfinex is investing $600 million. SoftBank is providing an additional $900 million. The group also plans to raise another $550 million through bond issuances and private equity placements in order to acquire more Bitcoin.

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