Daniel Walker
Bitcoin has surged above $87,000, marking its highest point in over two weeks, as broader economic liquidity expands and institutional players renew their interest in the flagship cryptocurrency. This price jump comes despite ongoing concerns surrounding U.S. trade tariffs under former President Donald Trumpโs economic strategy.
As reported by PRIME, Bitcoin is currently trading at $87,325, registering a 2.4% increase over the last 24 hours. This is the first time BTC has surpassed the $87,000 threshold since April 2, indicating a potential shift in momentum after recent market setbacks.
Tariff Tensions and M2 Expansion Push Capital Back Into Bitcoin
Earlier this month, Bitcoin experienced a decline to nearly $74,500, affected by fears surrounding renewed U.S. tariffs that pushed both equities and crypto investors toward more conservative assets.
Dominick John, analyst at Kronos Research, attributes Bitcoinโs resurgence to growing global liquidity, with the M2 money supply rising across the U.S., Europe, Japan, and China. According to MacroMicro, combined M2 from these regions hit $90.2 trillion between December and February.
John also emphasized the impact of institutional accumulation, particularly moves by Michael Saylorโs company, Strategy (formerly MicroStrategy), which recently added 3,459 BTC to its portfolio. Despite logging an unrealized Q1 loss of $5.91 billion, Saylor remains confident, famously posting on X:
“Bitcoin has no counterparty risk. No company. No country. No creditor. No currency. No competitor. No culture. Not even chaos.”
ETF Flows and Altcoin Activity Hint at Broader Optimism
Spot Bitcoin ETFs in the U.S. recorded a net inflow of $15.8 million last week, suggesting growing institutional appetite after a slower start to the year. This positive sentiment extended to other cryptocurrencies as well. Ethereum climbed to $1,632 (+0.97%), and XRP gained 1.38% to hit $2.11. Meanwhile, Solana experienced a slight decline of 0.87%, settling at $140.2.
Whatโs Next? All Eyes on Fed and Trade Talks
Despite recent gains, analysts remain cautious. Peter Chung, Head of Research at Presto Research, warns that the ongoing negotiations over trade tariffs could still spark volatility.
โWeโre not out of the woods yet,โ Chung noted, referencing continued pressure in bond yields and a fragile U.S. Dollar Index.
Still, Bitcoin’s resilience is noteworthy. Chung pointed out that BTC has outperformed major benchmarks like the S&P 500, Nasdaq, and even the so-called โMagnificent 7โ tech stocks during April.
Interest Rate Policy Could Determine BTCโs Trajectory
For Bitcoinโs current rally to evolve into a full-fledged bull market, the U.S. Federal Reserve may need to pause or cut interest rates, according to Kronos’ John. The next FOMC meeting is set for May 6โ7, and the CME FedWatch Tool currently gives just a 12.4% chance of a 25 basis point rate cut.
โA clear stance on Trumpโs trade tariffs is key for calming markets and strengthening investor confidence,โ John concluded.
