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.

Oil prices remained trading near seven-month highs on Wednesday as investors assessed supply risks stemming from the possibility of a military conflict between the United States and Iran.

Brent crude futures rose by 33 cents to $71.10 per barrel by 11:27 GMT, while US West Texas Intermediate crude gained 22 cents to $65.85 per barrel.

Brent prices had reached their highest level since July 31 on Friday, while WTI touched its highest level since August 4 on Monday, after the United States strengthened its military presence in the Middle East in an effort to push Iran toward negotiations aimed at ending its nuclear and ballistic missile programs.

Any prolonged conflict could disrupt supplies from Iran — OPEC’s third-largest crude producer — as well as from other key oil-producing countries in the Middle East.

Prices also found support after US President Donald Trump briefly outlined his justification for a possible strike on Iran during Tuesday’s State of the Union address, saying he would not allow what he described as the world’s biggest state sponsor of terrorism to obtain a nuclear weapon.

Ole Hvalbye, commodity analyst at SEB, said: “The market is trying to digest what is happening between the US and Iran. Without escalation or harsh rhetoric from either side, Brent would likely trade between $60 and $65 per barrel.”

US envoys Steve Witkoff and Jared Kushner are scheduled to meet an Iranian delegation in Geneva on Thursday for a third round of talks.

Iranian Foreign Minister Abbas Araghchi said on Tuesday that reaching an agreement with the United States was “within reach, but only if diplomacy is prioritized.”

In a research note, IG market analyst Tony Sycamore said: “Trump warned that if no deal is reached, there will be very severe consequences. It remains to be seen whether Iranian concessions will meet Washington’s red line of zero enrichment.”

Amid rising tensions, Iran has accelerated talks to purchase Chinese anti-ship cruise missiles, according to Reuters sources — weapons that could potentially target US naval forces positioned near Iranian waters.

While geopolitical tensions supported prices, the market also faced pressure from concerns over large inventory increases as global supply continues to exceed demand.

According to market sources, the American Petroleum Institute reported late Tuesday a sharp rise in US crude inventories of 11.43 million barrels for the week ending February 20.

Official US oil inventory data from the Energy Information Administration is scheduled for release later on Wednesday.

The US dollar traded mostly stable against major currencies on Wednesday, while the Japanese yen fell to a two-week low versus the dollar, pressured by renewed uncertainty over the Bank of Japan’s policy path and rising tensions with China, as investors monitored global risk sentiment.

The Japanese currency weakened on Tuesday after a report said that Prime Minister Sanae Takaichi had expressed reservations to the Bank of Japan about moving forward with additional interest rate hikes. The yen was also affected by China’s decision to add more Japanese companies to its export restriction list, a move widely seen as a response to Takaichi’s comments regarding Taiwan.

Following Takaichi’s decisive victory in the February 8 election, the yen had previously strengthened on market expectations that a government leaning toward fiscal stimulus could shift the balance of risks toward tighter monetary policy.

The yen fell by 0.50% to 156.70 against the dollar after touching 156.82, its weakest level since February 9.

In a move that could reinforce a more dovish stance, the Japanese government on Wednesday nominated two academics viewed as strong supporters of stimulus policies to the central bank’s policy board, potentially steering the Bank of Japan toward a more accommodative path, although MUFG’s Head of Global Markets Research, Derek Halpenny, expressed some caution.

He said: “It cannot be concluded that this will significantly change the overall direction of the policy board, particularly since the departing members already belonged to the dovish camp.”

Nvidia Earnings in Focus

Investors are awaiting results from AI chipmaker Nvidia after Wednesday’s market close, as the stock carries nearly an 8% weight in the S&P 500, meaning its results could have a meaningful impact on market risk appetite.

Francesco Pesole, FX strategist at ING, said: “If the US dollar declines alongside higher-risk currencies, that would be a worrying signal that markets are developing broader concerns linked to a reassessment of the US AI sector.”

He added: “We see this scenario as less likely, and expect the dollar to continue respecting its — albeit weaker — negative correlation with US equities.”

The Australian dollar rose 0.35% to $0.7084 following faster inflation, which strengthened expectations for further interest rate hikes.

The Australian dollar is considered a highly risk-sensitive currency, closely tied to the performance of global risk assets, especially equities, and remains vulnerable to sharp swings if equity markets become volatile due to its stretched positioning.

Euro Driven by Dollar Moves

With the European Central Bank expected to keep its monetary policy unchanged throughout 2026, euro trading is likely to remain largely driven by movements in the US dollar.

Roberto Mialich, global FX strategist at UniCredit, said: “The recent US Supreme Court ruling on tariffs increases uncertainty and could push the Donald Trump administration to seek a weaker currency to support exports and reduce the widening trade deficit.”

Trump made only limited comments in Tuesday’s State of the Union address, failing to ease concerns over the direction of future trade and tariff policies.

The euro rose 0.05% to $1.1718, while the US Dollar Index edged down 0.05% to 97.92.

The Chinese yuan — which has gained around 7% over the past ten months — reached 6.8766 against the dollar on Tuesday, its highest level in nearly three years, and later stabilized at 6.8652 in offshore trading.

Analysts at Goldman Sachs said that the starting point of deeply undervalued currency levels, combined with strong export-sector performance, remains a significant supporting factor.

China also confirmed that it is closely monitoring US policies and will decide “at the appropriate time” whether to adjust its countermeasures to US tariffs.

Gold prices rose in European trading on Wednesday, resuming gains that were temporarily paused yesterday, and approached a four-week high, supported by the decline of the US dollar in the foreign exchange market.

With expectations for a Federal Reserve rate cut in March continuing to fade, markets are awaiting further evidence regarding the direction of US monetary policy throughout this year.

Price Overview

Gold prices today: gold rose by 1.3% to $5,210.74, up from the session opening level of $5,142.85, while recording a low of $5,121.57.

At Tuesday’s settlement, gold prices fell by around 1.65%, marking the first loss in five sessions, as a result of corrective moves and profit-taking after earlier reaching a four-week high of $5,249.88 per ounce.

US Dollar

The US Dollar Index declined by more than 0.2% on Wednesday, resuming losses that had paused over the previous two sessions, reflecting renewed weakness in the US currency against a basket of major and secondary currencies.

As is widely known, a weaker US dollar makes dollar-denominated gold bullion more attractive to buyers holding other currencies.

President Donald Trump’s State of the Union address to Congress added to market uncertainty, as it failed to provide sufficient reassurance about the stability of trade policy following the Supreme Court ruling that voided previous tariffs, prompting investors to sell dollar-denominated assets.

US Interest Rates

Federal Reserve Governor Christopher Waller said he is open to keeping interest rates unchanged at the March meeting if February labor market data shows that employment conditions have stabilized after the weak performance seen in 2025.

According to the CME FedWatch tool, pricing for keeping US interest rates unchanged at the March meeting remains steady at 95%, while the probability of a 25 basis point rate cut stands at 5%.

To reassess these expectations, investors are closely watching upcoming US economic data releases, in addition to remarks from Federal Reserve officials.

Gold Outlook

Jim Wyckoff, senior analyst at Kitco Metals, said gold prices are moving higher again after a temporary correction, adding that the weaker US dollar is also supporting the rise in prices.

SPDR Gold Trust

Gold holdings in the SPDR Gold Trust — the world’s largest gold-backed exchange-traded fund — increased by 7.72 metric tons on Tuesday, marking the second consecutive daily rise. Total holdings climbed to 1,094.19 metric tons, the highest level since April 29, 2022.