The Bitcoin price was flat on Friday morning as the crypto market volume dipped during the Thanksgiving weekend. BTC was stuck at $90,750, a few points below this week’s high of nearly $92,000.
Bitcoin Price Has Trump and Fed Tailwinds
Bitcoin and other cryptocurrencies are facing two major tailwinds from Donald Trump and the Federal Reserve.
In a recent interview, the US president hinted that the US may be able to eliminate or significantly reduce Americans’ income tax as early as 2026.
The amount of income tax collected will be offset by his tariff revenue, which analysts believe will continue to rise over time. Trump also hinted that Americans will have the biggest tax refund in years.
Still, a plan to end the income tax is a long shot because of its size and impact on the deficit. Data shows that the federal government collects about $2.5 trillion in income tax annually, while Trump’s tariffs are expected to raise about $300 billion annually.
READ MORE: Crypto Rally Today: Here’s Why Bitcoin and Altcoins are Up on Thanksgiving
At the same time, ending income tax would affect US debt, which has increased in the past few months to $38.3 trillion. Trump has often touted a report showing that his tariffs would cut US debt by over $4 trillion in a decade.
The income tax statement came as Trump’s plan to offer a $2,000 stimulus dividend check faced resistance from Republicans in the House and the Senate.
Meanwhile, Bitcoin’s price is set to benefit from rising expectations that the Federal Reserve will cut interest rates at its December meeting and further in 2026.
These hopes have continued to rise after the US released weak macro numbers on the labor market this week. A report by ADP showed that the economy shed jobs last week.
BTC price normally does well whenever the Federal Reserve is cutting or planning to slash interest rates and embrace an easy-money policy. Index, US treasuries, and the Secured Overnight Financing Rate (SOFR) have all tumbled in the past few weeks.
BTC Price Technical Chart Analysis
The daily chart shows that BTC bottomed at $80,495 on November 21 and rebounded to over $90,000 on Wednesday.
Moving above that resistance was important because it showed that bulls remained in the market. However, the coin remains below all moving averages. It is also below the Supertrend indicator, a sign that this rebound could be a dead-cat bounce.
As we wrote on Friday, a potential path for the crypto market to recover is for Bitcoin to form a double bottom on the daily chart. It has already formed the first part of this pattern at $80,494.
As such, it is likely that the Bitcoin price will retreat, retest that support, and then resume the uptrend.
READ MORE: Ethereum Price Prediction as Tom Lee Sees ETH Hitting $6k
