Bitcoin prices surged past $95,000, approaching $96k for the first time in over two months, while U.S. stocks also gained ground, recovering from tariff-related panic. Analysts express skepticism about the market’s disconnect with economic data, with concerns about consumer confidence and job openings, amid trade deal developments from the White House.
On Tuesday, Bitcoin made a significant move, climbing above the $95,000 mark and nearing the pivotal $96,000 threshold, something not seen in over two months. This uptick came amid a stronger performance from U.S. stocks, which are still recovering from last month’s tariff-related concerns. Analyst Jeff Park from Bitwise remarked on the unpredictable nature of the markets, suggesting there is a fundamental disconnect between stock performance and economic indicators.
Bitcoin (BTC) saw a 1% increase in the last 24 hours, trading around $95,400, edging closer to the much-anticipated $96k. The broader crypto market followed suit, with the CoinDesk 20 index rising by 1.1%, led by Bitcoin Cash (BCH), which rose by a notable 6.3%. However, notable players in the crypto stocks, such as Coinbase (COIN) and MicroStrategy (MSTR), posted more modest gains of 0.9% and 3.3%, respectively. Interestingly, Janover (JNVR) capitalised on its SOL accumulation strategy, jumping an impressive 16%.
Despite the positive momentum in the crypto and stock markets, underlying economic anxiety remains, particularly related to the impact of tariffs introduced by the Trump administration. Recent data shows a downturn in consumer confidence, reported at its lowest since May 2020, with the latest Conference Board survey indicating growing concerns among consumers. Additionally, job openings dropped to 7.19 million in March, falling short of the anticipated 7.5 million as per the JOLTS survey.
As reported by Secretary of Commerce Howard Lutnick, the White House is nearing completion on a trade deal with an undisclosed country, signalling potential relief for markets, although it awaits final ratification. However, there’s a prevailing caution among analysts. Jeff Park pointed out on social media that the market’s current optimism may be misplaced, especially concerning the Federal Reserve’s potential interest rate cut, arguing that it may not adequately address diminished U.S. creditworthiness due to ongoing global economic shifts.
Park warned that the focus on whether the Fed will cut rates soon overlooks the bigger risk of a permanent shift in the global perceptions of “risk-free” assets, suggesting this could lead to a rise in global capital costs. Consequently, the excitement over a potential rate cut doesn’t match the long-term implications of ongoing economic policy and international relations, echoing a sentiment of caution amidst seemingly positive market conditions.
In summary, analysts highlight the importance of scrutinising the broader economic picture, as Bitcoin heads toward a pivotal milestone and stock markets continue to rally, despite troubling economic indicators that point to an unsettling trend beneath the surface.
