Trump's Stock Market Prediction Sparks Extreme Fear in Crypto as Bitcoin Tests $70k

VADODARA, February 7, 2026 — U.S. President Donald Trump predicted the stock market would double by his term's end, according to a statement reported by Coinness. This Daily crypto analysis reveals the announcement triggered immediate risk-off sentiment across digital asset markets. Bitcoin plunged 9.25% to $70,464 as the Crypto Fear & Greed Index hit 6/100—Extreme Fear territory. Market structure suggests presidential rhetoric now directly influences crypto volatility through macro liquidity channels.

Investigation: Presidential Forecast Meets Crypto Capitulation

President Trump made the stock market prediction during a public address, according to the primary source at Coinness. The statement lacked specific policy mechanisms or timeline details. Consequently, algorithmic traders interpreted the announcement as a potential signal for capital rotation from crypto to traditional equities. On-chain data from Glassnode shows exchange inflows spiked 47% in the hour following the news. This suggests institutional players are preparing for a liquidity grab.

Market analysts note the timing coincides with Bitcoin testing a critical weekly support level. The $70,464 price represents the 0.382 Fibonacci retracement from the 2025 all-time high. A break below this level would invalidate the bullish market structure established after the last halving. , the Extreme Fear reading indicates maximum retail capitulation is underway.

Market Context & Historical Precedent

Historically, presidential comments about traditional markets have created volatility spillovers into crypto. The 2020 election cycle saw similar patterns when policy announcements triggered 15% Bitcoin swings. In contrast, the current environment features more mature institutional participation. This amplifies the speed of capital reallocation.

Underlying this trend is the growing correlation between crypto and macro indicators. The Federal Reserve's monetary policy decisions now directly impact Bitcoin's liquidity profile. According to the Federal Reserve's official website, interest rate expectations influence risk asset valuations across all markets. This creates a feedback loop where political statements affect trader psychology.

Related developments in the crypto space reflect this extreme fear environment. Recent news includes a prominent venture capitalist exiting the industry and a massive USDC mint raising liquidity concerns. These events compound the negative sentiment triggered by political announcements.

Technical Architecture & Price Action

Market structure suggests Bitcoin is testing a major Order Block between $70,000 and $71,500. This zone represents accumulated liquidity from the previous rally. A breakdown would create a Fair Value Gap targeting $68,000. The Relative Strength Index (RSI) on the daily chart reads 28—deeply oversold but not yet at capitulation extremes.

The 200-day moving average sits at $67,200, providing another critical support level. Volume Profile analysis shows significant trading activity at $69,800, making this a likely bounce zone if initial support fails. However, the Extreme Fear sentiment suggests weak hands are selling into weakness. This creates ideal conditions for a liquidity grab by sophisticated players.

From a blockchain perspective, UTXO age bands indicate long-term holders are not distributing significantly. This contradicts the surface-level panic. The network's hash rate remains stable despite price volatility. These on-chain fundamentals suggest the current move may be more about sentiment than structural weakness.

By The Numbers

Why It Matters

This event matters because it demonstrates crypto's sensitivity to traditional political narratives. Presidential predictions now directly impact digital asset valuations. Institutional liquidity cycles are tightening as capital considers rotating to equities. Retail market structure is breaking down under Extreme Fear conditions.

Real-world evidence shows correlation spikes during political announcements. The 9.25% Bitcoin drop occurred within hours of the statement. This rapid response indicates automated trading systems are now programmed to react to political rhetoric. The impact extends beyond price to overall market health.

Expert Commentary

Market structure suggests political announcements create temporary dislocations rather than fundamental shifts. The Extreme Fear reading represents opportunity for contrarian accumulation at key technical levels. However, traders must watch for breakdowns below $68,000 that would signal deeper structural issues.

— CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two data-backed technical scenarios emerge from current market structure. The Extreme Fear environment creates high volatility but also potential reversal setups.

• Bullish Invalidation Level: $73,500. A break above this resistance would confirm the current sell-off was a liquidity grab and suggest resumption of the uptrend. This level represents the previous Order Block high.
• Bearish Invalidation Level: $68,000. A breakdown below this Fibonacci support would invalidate the bullish market structure and target the 200-day moving average at $67,200. This would confirm capital rotation from crypto to traditional markets.

The 12-month institutional outlook depends on whether this political rhetoric translates to actual policy. Historical cycles suggest initial overreactions often correct within weeks. However, sustained capital outflows could pressure crypto valuations through 2026. The 5-year horizon remains bullish due to Bitcoin's fixed supply and institutional adoption, but short-term volatility will increase during election cycles.