Bitcoin soared above $89,000 on Tuesday, nearing the $90K resistance threshold, as investors shifted away from U.S. assets due to increasing political unrest involving former President Donald Trump and the Federal Reserve. This significant price movement underscores the growing appeal of alternative stores of value during periods of financial instability.
Market Turmoil Fuels Crypto Rally
While Bitcoin experienced a surge, traditional U.S. financial markets took a downturn. Key developments included:
- All major U.S. stock indices dipped over 2%
- The U.S. Dollar Index dropped to 97, its lowest in three years
- 10-year and 30-year Treasury yields climbed over 7 basis points
The volatility was sparked by fresh attacks from Trump on Fed Chair Jerome Powell, casting doubt on the central bank’s independence and future policy trajectory. As uncertainty looms over conventional assets, investors appear to be seeking refuge in Bitcoin and other digital assets.
On-Chain Data Shows Accumulation
On-chain analytics indicate that long-term investors are doubling down on Bitcoin. The Value Days Destroyed (VDD) metric — often linked to HODLer behavior — has dropped to its lowest point since 2022. This metric decline is commonly seen as a sign of increased confidence and a reduced urge to sell.
Further supporting this view:
- Bitcoin balances on centralized exchanges are decreasing
- This points to diminished selling pressure among holders
Outlook for Bitcoin
This rally marks Bitcoin’s highest level since late March and continues a broader trend fueled by macroeconomic instability and growing institutional adoption. With traditional U.S. investment vehicles under pressure, crypto markets — particularly Bitcoin — may continue to benefit from capital migration.
For more details, read the full article on Mitrade.
