Bitcoin Nears April Highs Amidst Macro Instability and Dollar Weakness

Bitcoin is nearing April highs around $88,000 amidst macroeconomic upheaval. Market participants are sceptical and cautious about the price spikes occurring during non-standard trading hours. The Federal Reserve’s upcoming stance on interest rates could have significant implications. Concurrently, gold is reaching record levels, reflecting investor fears regarding the US dollar, which is weakening significantly. New Bitcoin investors are turning a profit, whereas long-term holders still face losses until BTC moves above $91,000.

Bitcoin (BTC) is currently approaching new highs for April, driven by recent macroeconomic instability linked to the US-China trade war. Currently priced around $88,000, trader sentiment is cautious, with many sceptical about the strength of recent price movements.

Bitcoin began the week with a 3% increase, reaching a peak of $87,705, its highest in nearly three weeks, despite traders pointing out the untrustworthy nature of price surges occurring during non-standard trading hours. Market analysts have suggested that lower trading volumes during weekends can lead to false breakouts and urge caution regarding the sustainability of any bullish trends.

The Federal Reserve is set to be a focal point this week, with several officials making comments on the economic landscape. As tensions rise due to President Trump’s criticisms of Fed Chair Jerome Powell, market participants are closely watching for any shifts in policy, especially regarding interest rates, which are not expected to decline until at least June.

Gold has been performing strongly in 2025, nearing record prices amidst the ongoing trade war. Currently, XAU/USD is approaching $3,400 per ounce, displaying significant momentum despite predictions of a potential market top. Analysts suggest that the trade war has propelled investor interest toward gold, and this dynamic is also reflected in Bitcoin’s recent price movements.

As the US dollar continues to weaken, this trend presents a potential upside for Bitcoin. The US dollar index has dropped 1.3%, marking nearly a 10% decline year-to-date and poised for a significant breakdown from long-term trends. This scenario has led to expectations of a bullish market environment for both Bitcoin and commodities, with historical data showing Bitcoin’s strong performance during periods of dollar weakness.

Recent movements in Bitcoin pricing are positively impacting new investors, with many seeing a profit even at current levels near $87,000. However, long-term holders who purchased within the last six months are still at a loss, emphasising the need for BTC to surpass $91,000. A breakout above this threshold would likely ease selling pressure and reinforce the bullish outlook for Bitcoin.