Bitcoin's price stabilized around $85,000 following President Trump's recent statements, which included the commitment to not sell confiscated Bitcoin and a call for clearer regulations on stablecoins. While speculation about potential zero capital gains taxes on cryptocurrencies or the establishment of a Bitcoin reserve did not materialize, traders initially reacted positively before selling off when the anticipated announcements did not occur. Notably, Bitcoin briefly peaked at $87,453 before dropping to $83,655. Market analysts suggest that a pullback to $73,700 is possible, depending on upcoming price developments. The Federal Reserve's reassurance of a slower pace in quantitative tightening and the potential for interest rate cuts in 2025 also contributed to Bitcoin's recent movements. Arthur Hayes, BitMEX co-founder, pointed out that while the bottom may have been $77,000, volatility could still pose risks to both stocks and Bitcoin. Overall, excitement over Trump's statements and favorable conditions from the Federal Reserve are pivotal in shaping traders' strategies in this volatile market.

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