Bitcoin surged past $94,000 on Wednesday, marking its highest level since early March, as easing U.S.-China trade tensions and renewed institutional interest fueled a broader rally in the crypto market. However, analysts caution that key resistance levels and tepid derivatives activity suggest the rally may face headwinds.
Bitcoin’s Performance and Market Dynamics
Bitcoin gained 3.25% over the past 24 hours, reaching an intraday high of $94,392 before settling around $93,683, according to CoinMarketCap data. This uptick coincided with a broader market rally, as the total cryptocurrency market capitalization rose to $2.92 trillion.
The rally was partly attributed to signs of de-escalation in the U.S.-China trade war. President Donald Trump indicated a willingness to reduce tariffs, and reassured markets by stating he has “no intention” of firing Federal Reserve Chair Jerome Powell. These developments boosted investor confidence across risk assets, including cryptocurrencies.
Top Gainers and Losers Among Major Cryptocurrencies
Among the top 20 cryptocurrencies by market cap, several posted notable gains. Ethereum gained 5.83% trading at $1,795.99, Cardano (ADA) 7.6% to $0.7054, Chainlink (LINK) gained 7.5% to reach $14.86, Solana (SOL) by 4.71% trading at $151.91, and Dogecoin (DOGE) increased by 4.87% now trading at $0.1796.
Conversely, a few top 20 cryptocurrencies experienced slight declines. TRON (TRX) decreased by 0.51% now at $0.245 while BNB (BNB) was down by 0.04% trading at $607.91.
Expert Urge Caution
Despite the bullish momentum, some analysts urge caution. Ryan Lee, Chief Analyst at Bitget Research, noted: “Bitcoin’s surge to $94,000, fueled by easing trade tensions, is encountering resistance around $91,275—a level aligning with the average cost basis of short-term holders. This convergence suggests potential selling pressure as traders aim to break even. Despite the price uptick, derivatives markets reflect cautious sentiment; futures premiums are subdued, and options skews remain neutral, indicating a lack of strong bullish conviction.”
Lee further added: “Without sustained ETF inflows or a decisive move above $95,000, Bitcoin may consolidate or retrace to the $85,000–$90,000 range. Investors are advised to closely monitor macroeconomic indicators and market liquidity, as these factors will likely influence Bitcoin’s near-term trajectory.”
Institutional Inflows and ETF Activity
Institutional interest in Bitcoin remains robust. Bitcoin ETFs have experienced significant inflows, with a net addition of 9,882 BTC (approximately $920 million) in recent days. Notably, ARK21Shares alone added 2,917 BTC, indicating strong institutional demand.
Furthermore, major financial firms like BlackRock and Fidelity are increasing their exposure to Bitcoin, with BlackRock’s iShares Bitcoin Trust managing over $18 billion in assets.
In another institutional endorsement of Bitcoin, Cantor Fitzgerald, in collaboration with SoftBank, Tether, and Bitfinex, is spearheading a $3 billion Bitcoin acquisition initiative. This venture, named Twenty One Capital, aims to emulate MicroStrategy’s strategy of holding substantial Bitcoin reserves.
U.S. Stock Market rallied sharply amid optimism over easing trade tensions
On April 23, 2025, U.S. stock markets rallied sharply amid optimism over easing trade tensions and reassurances regarding Federal Reserve leadership. The Dow Jones Industrial Average soared over 1,000 points, or 2.6%, to 40,227.42. The S&P 500 climbed 3.2% to 5,457.19, and the Nasdaq Composite jumped 4.1% to 16,967.93.
Technology and consumer discretionary stocks led the rally, with Tesla shares up 3% on better-than-expected auto business profits. Other tech giants like Nvidia, Apple, and Meta Platforms also saw gains despite regulatory fines.
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Image Credits: CoinMarketCap, Canva
