Bitcoin bucks downtrend with rally to $85.8K — Are BTC bulls really back?

Key Points

  • Bitcoin reclaimed the $84,500 level on April 14, but optimism faded due to temporary tariff relief by President Trump.
  • Uncertainty in US-China trade relations impacted Bitcoin markets, causing traders to lose confidence.
  • The premium on Bitcoin futures dropped to 5%, indicating reduced interest from leveraged buyers.
  • Bitcoin's sentiment was influenced by its correlation with stock markets, particularly tech companies.
  • Weak inflows into Bitcoin ETFs and a drop in stablecoin premiums in China reflect cautious trader sentiment.

Summary

Bitcoin experienced a brief rally to $85,800, driven by partial import tariff relief announced by President Trump. However, this optimism was short-lived as the relief was temporary, and the potential for revisiting tariffs on electronics supply chains loomed. The uncertainty in US-China trade relations led to a dip in trader confidence, preventing Bitcoin from breaking above $86,000. The premium on Bitcoin futures contracts also declined, signaling a lack of bullish sentiment. The market's mood was further influenced by Bitcoin's correlation with stock markets, particularly tech companies, which dampened enthusiasm. Additionally, weak inflows into Bitcoin ETFs and a decrease in stablecoin premiums in China indicated a cautious approach among traders, with little confidence in Bitcoin surpassing $90,000 in the near term. Despite a significant Bitcoin acquisition by Strategy, the market remained skeptical, reflecting broader market trends and trader sentiment.

cointelegraph
April 15, 2025
Crypto
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