Bitcoin’s price held steady around $86,650 after a day of sharp swings, as political and economic headlines kept traders on edge.

What Happened

After a volatile session that saw the crypto asset swing more than 2% in a single day, Bitcoin closed near $86,650. The rally was followed by a pause as traders digested mixed signals from U.S. economic data and political commentary.

Why It Matters for Bitcoin

Price stability amid volatility signals that Bitcoin may be absorbing broader market noise, but the underlying risk appetite remains low. The extreme‑fear reading on the Fear & Greed Index underscores that investors are still wary.

U.S. Angle

Former President Trump’s remarks that the newly appointed Fed Chair could slash rates “by a lot” add to speculation about future monetary policy. A rate cut could soften the dollar, lift inflation expectations, and potentially boost Bitcoin’s appeal as a hedge.

What to Watch Next

  • Upcoming CPI release for February and its impact on Fed policy expectations.
  • SEC filings on pending Bitcoin ETF approvals that could influence liquidity.
  • Any new developments in U.S. Treasury yields that affect risk‑on sentiment.
  • Market reactions to the new Fed Chair’s first policy statements.

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Source

Source: The Block