Bitcoin is once again making headlines as it edges closer to the $90,000 mark, spurred on by macroeconomic shifts including a decline in U.S. Treasury yields and adjustments to American trade tariffs. On April 14, the yield on the 10-year Treasury dropped by 8.2 basis points to 4.40%, and the 2-year yield decreased to 3.88%. These financial adjustments followed the U.S. government’s decision to grant temporary exemptions on tariffs for essential tech imports like smartphones, computers, and semiconductors.
These tariff changes aim to allow U.S. companies time to transition to domestic production. Though not permanent, their short-term effect has been a dovish tilt in yields—an outcome often favorable for risk-oriented assets such as Bitcoin.
Surging Bitcoin Price and Market Momentum
Bitcoin has capitalized on this climate, climbing approximately 7% in a week, marking its strongest weekly uptick since January. After a brief drop to $74,500, it has surged 15% and is now trading above $86,000. Market participants are now closely watching the $88,000–$90,000 range as a significant resistance barrier.
Key Drivers Behind Bitcoin’s Rally
Several elements are contributing to Bitcoin’s current rally. These include:
- Falling Treasury Yields: Reduced interest in fixed-income assets pushes investors toward high-yield alternatives like crypto.
- Inflation Concerns: Despite cooling inflation (March CPI at 2.4%), concerns linger due to unpredictable trade policies.
- Technical Strength: The cryptocurrency remains above its 50-week moving average and maintains firm support at $82,500.
- Reduced Bearish Sentiment: Narrowing spreads between Bitcoin’s spot and futures markets on Binance suggest growing bullishness.
Outlook and Implications
Even as U.S. economic indicators show signs of stabilization, Bitcoin continues to benefit from its role as a potential inflation hedge and an alternative asset amid shifting global trade and monetary policies. Analysts believe that if current trends persist, Bitcoin may soon break through the psychologically critical $90,000 level.
For more details, check the original article on Cointelegraph.
