On April 23, the price of the leading cryptocurrency surpassed $94,000 following conciliatory statements by US President Donald Trump regarding tariffs and the head of the Fed.
The head of state announced plans to be “very kind” to China in any trade negotiations and to lower tariffs if the countries can reach an agreement.
Trump also stated that he does not plan to dismiss Federal Reserve Chairman Jerome Powell, despite previously expressing dissatisfaction with his slowness in cutting rates.
Such comments sparked enthusiasm in the stock markets and acted as a catalyst for the continued rise of the leading cryptocurrency, which had recently stabilized above $90,000.
Another driving force was the liquidation of shorts. From April 22 to 23, the volume of forcibly closed positions in the cryptocurrency market amounted to $632.6 million, including $557.2 million in shorts, according to Coinglass.
The procedure affected 166,792 traders.
Approximately half of the liquidations were in bitcoin ($314.9 million).
According to Standard Chartered, the leading cryptocurrency will continue to appreciate if threats to the Fed’s independence persist.
Previously, BitMEX co-founder Arthur Hayes predicted that the price of digital gold would rise above $100,000 due to the US Treasury’s buyback of government bonds.