Cryptocurrency gains momentum as investors seek refuge from a weakening dollar and turbulent equities.
Bitcoin soared past US$90,000 on Tuesday, reaching its highest point since early March, driven by increasing stock market volatility, a declining US dollar, and easing global trade tensions.
Data from CoinGecko shows Bitcoin trading at US$92,713.45, reflecting a gain of over 10% in April and nearly 5% in the past 24 hours. The surge is attributed to a combination of factors, including a shift away from traditional investments, renewed confidence in the crypto sector, and geopolitical shifts unsettling global markets.
Growing Demand for Safe-Haven Assets
Bitcoin’s recent rally comes in the wake of a sharp decline in U.S. equities earlier this week, spurred by renewed political pressure on Federal Reserve Chair Jerome Powell. Reports suggest President Donald Trump has considered removing Powell before his term ends in 2026, sparking concerns over potential political meddling in monetary policy. Although markets saw a partial recovery on Tuesday, both the S&P 500 and the U.S. dollar index have dropped around 5% so far this month.Against this backdrop, spot Bitcoin ETFs saw US$381.4 million in inflows on Monday—their highest daily inflow since January—highlighting growing institutional interest. “Bitcoin continues to demonstrate resilience,” analysts noted.
Ed Engel of Compass Point observed, “Historically, Bitcoin’s correlation with equities during broad market sell-offs has neared 1.0, but we’re now witnessing a divergence. Its 30-day correlation with the S&P 500 has dropped to just 0.65.”
CoinMarketCap analyst Alice Liu added that Bitcoin’s behavior is beginning to resemble gold more than tech stocks. “Bitcoin is gaining while traditional risk assets are slipping. That’s a strong indicator of rising market confidence, particularly from institutional investors seeking alternative stores of value.”
Optimism Grows Over Potential Tariff Deal
Adding further momentum to the rally were remarks by U.S. Treasury Secretary Scott Bessent, who suggested during a private event that a resolution in the ongoing trade dispute with China could be imminent. The White House later confirmed Bessent’s comments, noting that 18 proposals are currently being discussed and negotiations with officials from 34 countries are in progress.
“Both traditional and crypto markets are reacting positively to signs of progress in tariff talks,” said Strahinja Savic of FRNT Financial. Altcoins also saw gains amid the upbeat sentiment—Dogecoin jumped 9% to US$0.17, while Ethereum rose 8% to US$1,700.
However, not all trade negotiations are progressing smoothly. Discussions with Japan—previously seen as a key contender in the U.S.’s “90 Deals in 90 Days” campaign—have reportedly hit a standstill. Japanese officials have condemned the tariff actions, calling them “deeply disappointing.”
Technical Indicators and Upcoming Resistance Levels
Technical analysts highlight that Bitcoin has surpassed a crucial resistance point at US$88,000. According to Katie Stockton of Fairlead Strategies, the next major resistance is expected around US$95,900. Despite strong market sentiment, some experts warn that thin trading volumes could leave Bitcoin susceptible to pullbacks without a clear driver—such as a rate cut or a finalized trade deal.
Nevertheless, speculative activity remains robust. Open interest in Bitcoin futures jumped 10.8% to US$68.6 billion, while total liquidations in the past 24 hours hit US$38 million—primarily from short positions caught off guard by the price surge. Bitcoin’s market capitalization now hovers near…
Bitcoin’s market capitalization has reached approximately US$1.8 trillion, with daily trading volume spiking over 25%. While it remains somewhat linked to equity markets, recent trends indicate a possible shift toward greater independence.
