Following harsh statements from US President Donald Trump regarding the economy and the Fed, the price of Bitcoin briefly tested the $96,000 level.
The largest cryptocurrency has risen by over 4% in the last 24 hours, while market volatility has increased significantly.
In social media posts, Trump argued that the US economy was experiencing a “deflationary economic boom,” pointing to a strong recovery in manufacturing, rising household incomes, and high private sector investment. Claiming the inflation outlook was “quite good,” Trump stated that the US had the world’s hottest economy. The president also criticized the Federal Reserve for its lack of willingness to cut interest rates, saying the central bank’s stance was overshadowing the growth trend.
President Trump also openly expressed support for the protests in Iran. In a post on Truth Social, Trump addressed Iranians, saying, “Keep protesting, take back your institutions. Help is on the way.” This message from Trump comes at a time when the Tehran government is taking harsh measures against the largest demonstrations in recent years. The statement has caused a renewed rise in geopolitical tensions in the Middle East, while also strengthening the perception of safe haven assets in global markets.
Following these statements, Bitcoin rose to the $96,000 threshold. According to market data, BTC gained approximately 4.36% in the last 24 hours, stabilizing around the $95,000 range. During the rise, there were sharp position closures in the derivatives markets. Total liquidation reached $648.4 million in the last 24 hours; $567 million of this came from short positions and $81 million from long positions. The intense liquidation of short positions was one of the main factors accelerating the upward momentum.
On the other hand, in terms of interest rate expectations, the market is pricing in a cautious approach from the Fed in the short term. The probability of a 25 basis point cut in January is seen at 2.8%, while the probability of rates remaining unchanged is calculated at 97.2%. The probability of a cumulative 25 basis point cut by March is 26.8%, while the probability of no change is 72.5%.
*This is not investment advice.