Bitcoin touches $66,000 as Trump praises the economy in longest ever State of the Union address

Bitcoin jumped 3% to reach $66,000 after US President Donald Trump delivered the longest State of the Union address in US history.

During the nearly two-hour speech before Congress, Trump praised what he described as a “booming US economy,” injecting fresh optimism into cryptocurrency markets.

Data from CoinGecko showed that investors poured approximately $52 billion into cryptocurrencies while the speech was underway.

Although Trump did not mention cryptocurrencies directly, the 79-year-old Republican president highlighted broader market performance, saying: “The stock market has set 53 new record highs since the election. Everybody is making money, big money.”

He added that global investors have injected $18 trillion into the US economy since he took office, aligning with bullish projections previously outlined by economists such as Ed Yardeni.

The upbeat tone comes as Bitcoin remains down 49% from its October peak of $126,000, amid concerns over significant economic disruptions.

However, the cryptocurrency trimmed part of its gains registered during the speech and was trading slightly above $65,000 at the time of writing.

This follows weeks after data showed that the US labor market posted its weakest January performance since 2009 — when the economy was emerging from the worst crisis since the Great Depression — with more than 100,000 layoffs.

Doubts Over the Recovery

Despite the optimistic speech, analysts remain skeptical about the cryptocurrency market’s ability to regain momentum quickly, given multiple headwinds facing the sector.

Aurelie Barthere, Principal Research Analyst at Nansen, said in a note to investors that slowing regulatory momentum and continued selling in the technology sector are adding pressure to Bitcoin’s downside trend.

Artificial Intelligence Concerns

Concerns are also mounting over the broader economic impact of artificial intelligence.

A report by Citrini Research titled “The Global Intelligence Crisis 2028” unsettled markets, particularly technology stocks, which are closely correlated with Bitcoin’s price.

The report outlines a scenario in which AI systems replace administrative workers, leaving them unable to service their debts and triggering a 38% decline in the S&P 500.

BlackRock’s flagship technology fund fell an additional 3% after the report gained wide attention. The fund, which tracks major technology companies such as Microsoft, Oracle, and Palantir Technologies, is now down 27% year-to-date.

Not everyone shares these concerns about AI’s labor market impact.

Laurent Kssis, research analyst at Kaiko, said the effect would likely be gradual: “Will it impact the job market? To some extent yes, but it’s about adapting to new technology or being left behind. I believe we will see a soft landing in the sense that it will gradually affect and reshape certain roles.”

He also noted that if AI were to trigger widespread job losses, the US government and the Federal Reserve would likely step in with liquidity support similar to measures taken during the COVID-19 pandemic, potentially supporting Bitcoin prices.

“Bitcoin tends to rise in response to increases in money supply and concerns about currency debasement,” he said.

Arthur Hayes, co-founder of BitMEX, offered a similar outlook earlier in February, suggesting that renewed money printing by the Federal Reserve could push Bitcoin to new record highs, although the timing remains uncertain.