Why did Bitcoin rise today? Trump's dollar theory sparks a risk-off wave, BTC bulls return to 89,000

Bitcoin prices remained stable above $89,000 on Wednesday, with President Trump’s comments on the dollar triggering Bloomberg’s dollar index to experience its steepest four-day decline since last April, as dollar weakness spurred safe-haven buying. Rhode Island reintroduced a blockchain bill, and Trump family-backed American Bitcoin increased holdings to 5,843 BTC. Coupled with strong technical support at $86,100, multiple positive factors drove BTC rebound.

Trump’s Dollar Remarks Ignite Market Safe-Haven Sentiment

The primary reason for Bitcoin’s rise today points to President Trump’s speech on Tuesday in Iowa. When asked about the dollar’s weakness and its near four-year lows, Trump responded, “I think it’s good… look at the business we do, the dollar is performing very well,” and expressed hope for the dollar to “return to its proper level.” At the time of this statement, Bloomberg’s dollar spot index was experiencing its steepest four-day decline since April last year, when Trump announced broad tariffs.

Trump’s comments triggered a chain reaction in the forex market. He hinted he “could make the dollar go up and down like a yo-yo,” while criticizing some Asian economies for trying to devalue their currencies to gain competitive advantage. He specifically mentioned China and Japan, saying “they always want to devalue their currencies… yen, yuan, they always want to devalue, devalue, and devalue,” calling this practice “unfair.”

Dollar weakness provides a structural bullish backdrop for Bitcoin. Historical data shows that when the dollar index declines, dollar-denominated assets (including gold and Bitcoin) tend to receive buying support. After the dollar hit a four-year low, institutional investors began reassessing allocations, with Bitcoin’s safe-haven properties as “digital gold” gaining renewed attention. Following Trump’s speech, the dollar hit an intraday low while Bitcoin prices rose in tandem, indicating an increasing negative correlation.

A deeper logic lies in the shaky confidence in the dollar’s credit. When the US President publicly states that the dollar can fluctuate “like a yo-yo,” market confidence in the dollar as a stable reserve currency is impacted. This uncertainty prompts some funds to flow into decentralized, supply-fixed assets like Bitcoin as a hedge against declining dollar purchasing power. This macro context explains why Bitcoin rose today.

Rhode Island Blockchain Bill Signals Policy Favorability

(Source: Senate)

The second key factor behind Bitcoin’s rise today stems from policy initiatives at the US state government level. Rhode Island legislators reintroduced Senate Bill S 2198, proposing the formation of a five-member committee dedicated to researching blockchain technology and digital assets. The committee will undertake tasks such as:

Core Functions of the Committee

· Review cryptocurrency activities and best practices nationwide

· Assess the applicability of existing state laws to the blockchain industry

· Study regulatory frameworks for NFTs and other digital assets

· Consult industry experts and gather public input

· Submit final legislative recommendations by January 2028

The group is chaired by the state’s commerce secretary, with members including regulators and public representatives from finance, academia, and other sectors. This cross-sector composition ensures professionalism and representativeness in policymaking. Notably, Rhode Island previously launched an initiative exempting small Bitcoin transactions from state taxes, lowering barriers for daily use.

These policy moves collectively send an important signal: US state governments are shifting from observation to active embrace of blockchain technology. For Bitcoin’s rise today, increased regulatory transparency is often seen as a prerequisite for institutional participation. When governments begin systematic research rather than outright bans, market confidence naturally grows. Rhode Island’s approach may inspire other states to follow, creating a US state-level crypto policy race, which is a long-term positive for Bitcoin adoption.

American Bitcoin Holdings Rise to 5,843 BTC Highlight Institutional Confidence

The third catalyst for Bitcoin’s rise today is strategic growth in corporate holdings. American Bitcoin (ticker: $ABTC), a Bitcoin mining company supported by the Trump family, has increased its holdings to approximately 5,843 BTC, placing it among the top 20 global corporate holders.

Since its Nasdaq listing in September 2025, the company reports a Bitcoin yield of 116%, reflecting rapid accumulation through mining and selective purchases. Donald Trump Jr. and Eric Trump hold about 20% of American Bitcoin shares collectively, while Hut 8, after its spin-off and merger with Gryphon Digital Mining, controls roughly 80%.

Enhanced mining capacity and profitability recovery last year have led to an increase of over 1,800 BTC in reserves in recent months. Management explicitly states this strategy reflects a broader trend among public miners to view Bitcoin as a long-term asset on their balance sheets rather than a short-term liquidity tool. This “mine-and-hold” business model is reshaping supply-demand dynamics.

When Trump family-backed companies continue to accumulate, the market interprets this as political and commercial endorsement. This not only explains today’s rise but also suggests a more favorable future policy environment. Similar to pioneers like MicroStrategy, American Bitcoin’s strategy indicates institutional investors are increasingly viewing Bitcoin as a reserve asset akin to gold, rather than just a trading instrument. This long-term holding reduces circulating supply, naturally pushing prices higher under steady demand.

Technical Support at $88,000 Shows Clear Bottoming Pattern

(Source: TradingView)

From a technical perspective, Bitcoin’s rise today shows clear bottoming signals. The current price around $88,400 has stabilized after a sharp decline from a high of $95,500 earlier this month. On the two-hour chart, prices remain below the downtrend line since January’s high, but recent candles near $86,100–$87,000 show longer lower shadows and smaller bodies, indicating weakening selling pressure and stable buying on dips.

Key Technical Levels

Support: $86,100 (primary), $84,200 (secondary)

Resistance: $89,900, $91,200, $93,300

Decision Zone: Convergence of 50-day and 100-day moving averages around $89,400

While still within a downtrend channel, momentum has slowed. The 50-day moving average remains below the 100-day, with both converging above the 200-day moving average near $89,400, forming a decision zone rather than a breakdown area. RSI has rebounded to around 50, indicating a balanced market rather than oversold. No bearish continuation patterns have appeared after the recent sell-off; the recent spinning top candlestick suggests consolidation.

The technical reason for today’s rise is that the $86,100 support has been tested multiple times and remains firm. This price action attracts technical buyers. A breakout above resistance at $89,900 could challenge $93,300 and even retest the $95,500 high. Conversely, a break below $86,100 might test deeper support at $84,200.

Notably, amid Trump’s dollar comments and policy news, the technical setup is at a critical support zone, amplifying the bullish momentum through fundamental and technical resonance. The confluence of multiple factors explains today’s upward move comprehensively.

Carson vs. Schiff Debate Highlights Growing Bitcoin Discourse Power

Bitcoin’s rise today is also related to shifts in market narrative influence. Renowned host Tucker Carlson recently questioned economist Peter Schiff—long a critic of Bitcoin—about whether Bitcoin can ultimately replace the weak dollar as a global reserve asset. Schiff dismissed this idea, criticizing the proposal for the US to build a strategic Bitcoin reserve, calling it taxpayer-funded welfare for early holders, and reiterating Bitcoin’s lack of practical utility, labeling it purely speculative.

Carlson countered by asking what distinguishes Bitcoin as a store of value from gold or stocks, noting that despite limited daily use, gold still functions as money. This exchange underscores the divergence between traditional asset perspectives and digital asset views, while also emphasizing Bitcoin’s growing influence in broader monetary debates.

When Bitcoin can be discussed alongside gold and the dollar on mainstream media platforms, it signifies its rising stature. This shift in discourse enhances market sentiment and provides psychological support for today’s rally. Investors are increasingly considering Bitcoin’s role in diversified portfolios rather than viewing it solely as a speculative tool.