Trump Hails US Stock Rally As Oil Price Dips: Will Crypto Market Recover?

President Donald Trump has praised a recent rally in the U.S. stock market. He said that markets rallied owing to the signing of the US-Iran peace deal recently. Moreover, the plunge in oil prices could also positively impact the equities and even the crypto market in the future.

Trump Lauds The Latest US Stock Market Surge

Trump, during a press address, added that investors always rewarded indications of progress in diplomacy.

“Every time we talked about the possibility of peace, the stock market shot up like a rocket ship,” Trump said. He cleared, “It never went down.”

In addition, markets served as a real-time measure of sentiment, he added. Trump noted, “The stock market is quite brilliant. And every time we said something amazing, like we’re going to settle, it would go up.”

Trump’s remarks come after a solid U.S. stock market rally, including major indexes like the S&P 500 hitting new record levels above 7,400. However, the Fed’s latest rate decision puts the stock market, Bitcoin and the entire crypto market in a tough position.

Risk assets, such as Bitcoin, are suffering owing to the potential of a Fed rate hike in the future. These fears come as Fed Chair Kevin Warsh maintained a hawkish stance at the June FOMC meeting.

Will Falling Oil Price Stir Crypto Market Recovery?

Though the crypto market dragged down following the Fed meeting, some analysts believe that continued downward oil price action could prove to be the savior for risk assets in the future.

For context, WTI crude oil settled around $74.76 per barrel at press time, 28.24% lower in the last month, per Trading Economics data. Moreover, Brent crude dropped to around $77.70, which signals a decline of over 30% lower for the month.

When energy prices drop, it can help deal with the inflation pressures. This can indeed lessen the need for the monetary tightening policy to be taken to the extreme level.

Since oil prices have been falling after the US-Iran deal, the crypto market could benefit with a rebound. However, for this, the PCE inflation should come under the Fed’s 3% for the central bank to offer a dovish stance at the September FOMC meeting.

Bitcoin Risks Key Support Retest At $64K

Amid this backdrop, crypto analyst Michaël van de Poppe wrote on X, “The big question: Is #Bitcoin going to hold here in the next 48 hours?” Poppe said that bond yields are already trending down following the FOMC meeting and as oil prices keep declining.

“Yields are already correcting after FOMC, oil continues to fall, means that STRC is the key reason that we’re correcting at this point.” Here, he is referring to the recent record low price of Strategy’s STRC preferred stock, which is used to buy more Bitcoin for the company.

Not only STRC lost the $100 par but is trading at the low end at around $89. It could be weighing on the BTC price, which may have obstructed a rebound in the crypto market.

Bitcoin has now entered a critical trading range around the $63,800-$65,000 level, as Van de Poppe’s chart depicts. The chart does indicate that Bitcoin has the potential to rise to the $72,000-$75,000 area if it can make its way through the $65,000 level. This suggests a 15% move up from the current BTC price, which could also trigger a surge in the overall crypto market.

Analyst Ted Pillows, however, pointed out that $64,000 is the next key support level for Bitcoin in the short-term. His chart shows resistance levels at $67,100 and $70,700 with downside potential towards $60,000 if the $64,000 support zone is breached.

“BTC tapped the $64,000 support zone after yesterday’s FOMC meeting,” Pillows wrote. He added, “This level needs to hold for any rally towards $67,000-$68,000. Or else, Bitcoin will drop towards $61,000-$62,000 again.”