Bitcoin’s price surged to $88K amidst a weakening USD, driven by political tensions and market dynamics. Trading volume rose significantly, signalling robust investor engagement and optimism. Despite some turbulence, Bitcoin’s dominance in the crypto market increased, while concerns about regulatory changes and altcoin performance linger.
Bitcoin’s price increased significantly during the Easter weekend, reaching a peak of $88,260 on Monday, while the USD fell to a three-year low. This depreciation in the dollar is attributed to President Trump’s trade tariffs and threats towards Federal Reserve Chairman Jerome Powell, leading to a retreat of foreign investors from U.S. assets. As a result, Bitcoin and physical gold emerged as attractive safe-haven investments.
Throughout the week, Bitcoin demonstrated strong upward momentum, climbing 4.48% within 24 hours, with trading volume surging to $34.41 billion, a notable increase of 133.17%. Bitcoin’s market capitalization rose to $1.74 trillion, reflecting a 4.15% growth, while its dominance in the crypto market improved to 64.30%. This indicates Bitcoin’s significant leadership as investor sentiment begins to recover.
Data from Coinglass shows a rise in open interest for Bitcoin futures, up by 11.45% to $61.89 billion, signalling increased investor engagement. However, the total liquidations amounted to a modest $460,490, suggesting orderly market conditions amid rising activity. Liquidations comprised $276,400 from short positions and $184,090 from long positions, reinforcing market stability.
President Trump praised lower-than-expected inflation reports but also publicly criticised Powell for not acting to cut interest rates amidst economic sluggishness, calling him a “major loser.” This political climate has brought the issue of Federal Reserve independence into question, and as investor confidence wanes, the USD has dropped significantly.
Bitcoin faced volatility following Powell’s remarks but managed to rebound. Standard Chartered expressed bullish predictions for XRP, foreseeing a 500% increase by 2028. In contrast, Coinbase highlighted a 41% drop in the altcoin market, suggesting a potential crypto winter, while SEC officials hinted at significant regulatory changes in cryptocurrency trading.
Amidst these developments, MANTRA’s OM token plummeted by 90% amid insider trading allegations, despite previously established partnerships with major entities like Google Cloud. This highlights ongoing risks in the decentralized finance (DeFi) sphere that could deter traditional financial investments into such projects.
Overall, recent trends demonstrate a clear shift in investor behaviour towards Bitcoin as a safe haven, underscoring its critical role in the evolving cryptocurrency landscape.
