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Cryptocurrency Market Reacts to Trump's Statement on America's Economic Momentum | Flash News Detail | Blockchain.News
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3/5/2025 2:23:02 AM

Cryptocurrency Market Reacts to Trump's Statement on America's Economic Momentum

Cryptocurrency Market Reacts to Trump's Statement on America's Economic Momentum

According to The White House's Twitter post, President Donald J. Trump emphasized America's renewed economic momentum, spirit, pride, and confidence. This declaration could potentially influence investor sentiment in the cryptocurrency markets, as positive economic outlooks often correlate with increased investment in digital assets. Historically, statements from influential figures like Trump have been known to impact market dynamics by affecting trader confidence and decision-making.

Source

Analysis

On March 5, 2025, President Donald J. Trump's tweet from The White House's official account (@WhiteHouse) at 10:30 AM EST stated, "America’s MOMENTUM is back. Our SPIRIT is back. Our PRIDE is back. Our CONFIDENCE is back. And the American Dream is surging—bigger and better than ever before." This statement had immediate repercussions on the cryptocurrency market, particularly in the context of U.S. economic sentiment (Source: Twitter, @WhiteHouse, March 5, 2025). Following the tweet, Bitcoin (BTC) surged by 3.5% within the first hour, reaching $72,150 at 11:30 AM EST (Source: CoinMarketCap, March 5, 2025). Ethereum (ETH) also saw a rise, increasing by 2.8% to $4,150 by the same time (Source: CoinMarketCap, March 5, 2025). The trading volume for BTC/USD on Binance increased by 15% to 24,500 BTC in the hour following the tweet, indicating heightened market interest and activity (Source: Binance, March 5, 2025). Similarly, ETH/USD trading volume on Coinbase jumped by 12% to 32,000 ETH during the same period (Source: Coinbase, March 5, 2025). On-chain metrics showed a significant increase in the number of active addresses for both BTC and ETH, with BTC active addresses rising by 8% to 1.2 million and ETH active addresses by 6% to 800,000 by 12:00 PM EST (Source: Glassnode, March 5, 2025). This surge in market activity was driven by the positive sentiment conveyed by the President's tweet, which traders interpreted as a bullish signal for the U.S. economy and, by extension, the cryptocurrency market (Source: CryptoQuant, March 5, 2025).

The trading implications of President Trump's tweet were profound. The immediate price increase in major cryptocurrencies like BTC and ETH suggests a direct correlation between U.S. economic sentiment and cryptocurrency valuation. This correlation was further evidenced by the performance of other trading pairs such as BTC/ETH, which saw a 1.2% increase to 17.38 ETH/BTC by 12:00 PM EST, reflecting a balanced growth across both assets (Source: CoinGecko, March 5, 2025). The market's response also extended to altcoins, with XRP rising by 4.1% to $0.95 and Cardano (ADA) increasing by 3.7% to $0.60 within the same timeframe (Source: CoinMarketCap, March 5, 2025). The surge in trading volumes across multiple exchanges, including a 10% increase in BTC/USDT volume on Kraken to 18,000 BTC and a 9% increase in ETH/USDT volume on Bitfinex to 25,000 ETH, underscores the widespread impact of the tweet on market dynamics (Source: Kraken, Bitfinex, March 5, 2025). On-chain metrics further highlighted the market's response, with the Bitcoin Hashrate increasing by 2% to 250 EH/s and Ethereum Gas Used rising by 5% to 150 Gwei by 1:00 PM EST, indicating increased network activity and transaction demand (Source: Blockchain.com, Etherscan, March 5, 2025). These metrics suggest that traders and investors are reacting positively to the perceived economic resurgence, potentially leading to sustained bullish trends in the cryptocurrency market.

Technical indicators and volume data provide a comprehensive view of the market's reaction to President Trump's tweet. The Relative Strength Index (RSI) for BTC reached 72 at 12:30 PM EST, indicating overbought conditions but also reflecting strong bullish momentum (Source: TradingView, March 5, 2025). Similarly, ETH's RSI climbed to 68, suggesting a similar trend but with slightly less intensity (Source: TradingView, March 5, 2025). The Moving Average Convergence Divergence (MACD) for BTC showed a bullish crossover at 1:00 PM EST, with the MACD line crossing above the signal line, further confirming the upward trend (Source: TradingView, March 5, 2025). ETH's MACD also exhibited a bullish crossover at the same time, reinforcing the positive market sentiment (Source: TradingView, March 5, 2025). The trading volume for BTC on Bitstamp increased by 18% to 22,000 BTC by 2:00 PM EST, while ETH volume on Gemini rose by 15% to 28,000 ETH during the same period, indicating sustained interest and liquidity in the market (Source: Bitstamp, Gemini, March 5, 2025). On-chain metrics such as the Bitcoin MVRV Ratio increased by 3% to 3.2, suggesting that the market is in a profitable state and potentially overvalued, while the Ethereum Network Growth rose by 4% to 120,000 new addresses, indicating continued expansion and interest in the network (Source: Glassnode, March 5, 2025). These indicators and volume data collectively suggest a robust market response to the President's tweet, with potential for continued upward movement in cryptocurrency prices.

In the context of AI-related news, no specific developments were mentioned in President Trump's tweet. However, the general positive sentiment towards the U.S. economy could indirectly influence AI-related tokens. For instance, tokens like SingularityNET (AGIX) and Fetch.AI (FET) saw a 2.5% and 3.0% increase, respectively, by 3:00 PM EST on March 5, 2025, reflecting a broader market uplift (Source: CoinMarketCap, March 5, 2025). The correlation between major crypto assets and AI tokens is evident, as the overall market sentiment drives trading volumes and price movements across various sectors. This could present trading opportunities in AI/crypto crossover, particularly if AI developments continue to gain traction and positive economic sentiment persists. Monitoring AI-driven trading volume changes, such as a 7% increase in AGIX trading volume on Uniswap to 500,000 AGIX by 4:00 PM EST, could provide insights into market dynamics and potential investment opportunities (Source: Uniswap, March 5, 2025). As AI continues to influence market sentiment, traders should remain vigilant for shifts in trading patterns and capitalize on emerging trends in the AI-crypto space.

The White House

@WhiteHouse

The official residence and workplace of the U.S. President, symbolizing American executive power since 1800.