Read expert analysis on what could drive XRP to new highs here.
Bitcoin and the Trump Effect
XRP’s decline coincided with bitcoin’s (BTC) drop below $85k on March 20. President Trump appeared at the Blockworks Digital Asset Summit in New York, fueling speculation about zero capital gains taxes on selected cryptos. There were also hopes for more detail on Trump’s Strategic Bitcoin Reserve (SBR) plan.
However, Trump’s comments fell short of expectations. He reiterated his pledge to hold the government’s BTC stockpile and future confiscations. Investors had hoped he would announce plans to expand the US BTC reserves, currently valued at $17.13 billion.
While Trump was silent on acquiring more BTC, the Bitcoin Act could still influence BTC’s supply-demand trajectory.
Senator Cynthia Lummis reintroduced the Bitcoin Act on March 11. If passed, the bill would authorize the US government to acquire one million BTC over five years, with a 20-year mandatory holding period.
Bitcoin Price Scenarios: Key Levels to Watch
On March 20, BTC dropped 3.06%, partially reversing Wednesday’s 5.01% rally to close at $84,216. Thursday’s pullback left BTC below the $100k level for the 41st consecutive session.
Potential BTC price scenarios:
- Bearish: Escalating trade tensions, recession fears, opposition to the Bitcoin Act, and ETF outflows could send BTC toward $70,000.
- Bullish: Easing trade tensions, economic resilience, growing Bitcoin Act support, and extended ETF inflows could push BTC toward $109,312.