Bitcoin reached $94,205 on Tuesday, marking an 11.8% gain over six days. The surge was part of a broader asset rally spurred by the White House’s softened stance on Federal Reserve policy and U.S.-China trade tariffs. Despite expressing a desire for lower interest rates, President Trump stated that he did not intend to dismiss Fed Chair Jerome Powell. Additionally, Treasury Secretary Scott Bessent hinted at potential tariff reductions with China, leading to a surge in U.S. equity benchmarks.
Bitcoin’s rally occurred independently of other major assets, showing only slight correlations with oil, gold, and the S&P 500. The recent breakout above $88,000 resistance was supported by low volume, indicating a lack of aggressive buying. Short-term momentum remains positive, but volatility is unusually low, potentially setting the stage for sharp price movements in the future.
The global equity market saw a $1.8 trillion increase in value within 24 hours, despite concerns over trade policy frictions and global growth downgrades by the IMF. The market uptick, coupled with Powell’s cautious approach to interest rates, has created uncertainty in the financial landscape, leading to lower treasury yields and a stronger Swiss franc.
Bitcoin’s decoupling from traditional assets has positioned it as a monetary hedge during times of policy ambiguity. As traders watch for developments in trade policy and Federal Reserve decisions, Bitcoin’s stability and upward trajectory may continue if tariff reductions are realized and central banks maintain autonomy. Key inflection points to watch for include concrete actions on trade and potential resistance within the Fed to political pressure.
In the meantime, Bitcoin’s proximity to the $95,000 threshold serves as a technical indicator for bullish sentiment. With factors like ETF-driven demand and halving narratives still influencing the market, traders will look for confirmation through increased volume and a clean breach of $95,000 to sustain Bitcoin’s current momentum. Ultimately, the sustainability of Bitcoin’s rally hinges on the lasting impact of this week’s policy shifts.
