Bitcoin Surpasses $88,000 Amid U.S. Trade Tariff Developments

According to Cointelegraph, Bitcoin (BTC) surged past $88,000 following the Wall Street opening on March 25, as risk assets remained highly sensitive to U.S. trade tariff developments. The BTC/USD pair maintained its position close to the daily opening price, reflecting a cautious optimism among traders. U.S. stocks also opened slightly higher, contributing to a sense of relief in the market. A significant factor in this positive sentiment was the U.S. government's announcement regarding the upcoming trade tariffs, scheduled to begin on April 2. U.S. President Donald Trump indicated that trading partners might receive exemptions or reductions, which helped alleviate market concerns. Trading firm QCP Capital highlighted this in their latest bulletin, noting that risk assets experienced one of their strongest sessions of the year due to the temporary easing of fears surrounding the tariff deadline. QCP Capital further observed that some market participants, including JPMorgan, believed the worst of the equities setback might be over. Historically, the second quarter, particularly April, has been a favorable period for risk assets, second only to the December rally. The S&P 500 has historically delivered an average annualized return of 19.6% in Q2, while Bitcoin has also shown strong performance during this period, trailing only the fourth quarter. Cointelegraph reported that expectations for April among Bitcoin market participants are high, given the historical trend of strong price performance. Data from CoinGlass indicates that the average returns for BTC/USD in March and April over the past eleven years have been just under 13%. Traders are now closely watching the $90,000 mark for Bitcoin, as short-term price action suggests potential movement towards new highs. Popular trader Daan Crypto Trades noted that Bitcoin is trading at a solid spot premium during this bounce. If it can maintain this premium while gradually moving back into the previous range above $90,000, there is confidence in a potential rise to new highs. However, the $90,000 level remains a significant resistance point, with Bitcoin's price still correlated to equities. CoinGlass data shows ongoing sell-side liquidity just below $90,000, previously linked to market manipulation by a high-volume trader known as "Spoofy the Whale." Keith Alan, co-founder of Material Indicators, emphasized that this entity could keep the price around $87,500. Alan also pointed out that flipping the yearly open level, just above $93,000, to support is crucial. Failure to do so could lead to a return to multimonth lows. This article does not provide investment advice, and readers should conduct their own research before making investment decisions.