(Feb 25): Bitcoin trimmed part of its early Asia gains during US President Donald Trump’s State of the Union address to Congress on Wednesday (Feb 25) after a morning jump that defied sustained pressure.
Bitcoin was up more than 2% to roughly US$65,500 at 1pm in Singapore after rising as much as 3.52% ahead of Trump’s speech, its biggest intraday gain since Feb 13. Ether rose more than 2.5% at US$1,906, after surging as much as 4.84%.
Smaller tokens also advanced with more positive market sentiment. Solana gained as much as 5.48% while XRP was up as much as 3.53% before also paring gains.
The initial uptick came alongside a rise in equities ahead of the State of the Union address, during which Trump defended his economic record. A Supreme Court decision invalidating his ability to use emergency powers to impose so-called reciprocal tariffs — a key policy initiative — contributed to a plunge in crypto prices earlier this week, after Trump invoked a different authority to say he would impose 15% global tariffs.
Caroline Mauron, co-founder of Orbit Markets, attributed the early gains to buying during a dip in prices. “The move higher likely reflects some dip-buying behaviour after the extended selloff,” she said, adding that reaching US$70,000 would shift the narrative.
See also: Bitcoin heads for worst month since crypto collapse of June 2022
Yet even before Trump left the lectern, crypto market strength had begun to wane. The president, who was seen as pro-crypto when he returned to the White House last year, did not mention digital assets in his speech.
The industry mood remains cautious. Put options worth nearly US$230 million with a March 6 expiry were concentrated around the US$58,000 level, according to Deribit data, signalling demand for downside protection.
“The massive put buying for the March 6 expiry reflects concerns over a US strike on Iran,” said Sean McNulty, Asia-Pacific derivatives trading lead at FalconX. Bets on Polymarket show 37% odds of a US strike on Iran by March 7 and 48% by March 15.
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