Bitcoin price has experienced a significant recovery following statements made by U.S. President Donald Trump regarding trade tariffs with China. The digital asset has surged over 12% this week, currently trading above $94,000, leading to speculation on whether it will surpass the $100,000 milestone soon.
Trump’s remarks on the potential reduction of tariffs influenced market sentiment on various risk assets, including Bitcoin, XRP, DOGE, Ethereum, and other cryptocurrencies. During a White House event, the president hinted at a substantial decrease in Chinese tariffs in the future, although they will not be reduced to zero. This change in rhetoric appears to be alleviating concerns about global trade tensions.
The positive news of easing trade war tensions has sparked a risk-on sentiment in the markets. Trump’s suggestion of lowering tariffs on Chinese imports, stating that 145% is excessively high and will come down substantially, has been well-received by investors. This shift in tone has contributed to a rally in major indices and increased demand for risk assets like Bitcoin, which surged by 6.77% on Tuesday, closing the day above $93,400 and continuing to rise above $94,000 on Wednesday.
On-chain and derivatives data suggest increased market confidence, with a rise in investor activity in the futures market. CME futures exposure has grown to 140,000 BTC, with premiums reaching over 9% for the first time since January. Additionally, Open Interest has seen a surge during the Easter week, reaching a new high of 140,000 BTC in the three-week range. This uptrend, driven by institutional players, indicates a belief in further price appreciation.
Bitcoin has surpassed Google’s parent company Alphabet, as well as Silver and Amazon, in total market value, with a market capitalization exceeding $1.8 trillion. This places Bitcoin as the fifth-largest global asset, highlighting its importance and relevance in the financial world. The rally in price and market value follows the easing of investor concerns over the trade war and monetary policy uncertainty.
Analysts are divided on the future trajectory of Bitcoin, with CEO of CryptoQuant, Ki Young Ju, suggesting that the market is currently moving within a wide range despite recent price gains. Ju emphasizes the importance of on-chain data for long-term supply and demand analysis, noting that event-driven reactions can complicate short-term price predictions. He also hints at a possible trend reversal if Bitcoin hits a new all-time high before Q4, signaling a deviation from past bull cycles.
