Bitcoin Surges as Trade and Fed Reserve Tensions Ease

Bitcoin has surpassed $90,000, reflecting a potential break from traditional correlations with US stocks. This shift coincides with easing trade tensions between the US and China, as highlighted by Treasury Secretary Scott Bessent. QR Capital observed a declining spot trading volume, indicating a shift toward leveraged positions in the futures market, which carries significant risk of liquidations under sudden market reversals.

On April 22, Bitcoin surpassed the $90,000 mark, indicating a departure from its previous correlation with US stock performance. Following comments made by former President Trump regarding Federal Reserve Chair Jerome Powell, Bitcoin’s price experienced notable growth alongside increases in stock values and the US dollar. Treasury Secretary Scott Bessent commented in a private investor summit that both the US and China must de-escalate their trade tensions, which are unsustainable at current levels.

QR Capital, a crypto asset management firm based in Brazil, noted a significant reduction in spot trading volumes on centralized exchanges, with a pivot towards the futures market for liquidity. This trend suggests that investors are leveraging positions for potential higher gains in cryptocurrency. While this can reflect investor confidence, it also introduces risks, as excessive leveraged positions may lead to significant losses if market sentiment changes abruptly, resulting in cascading liquidations.