Bitcoin Surges 10% to $88,804 as Trump Tariff Concerns Ease

Bitcoin (BTC) began the week with a strong rally, reaching a daily high of $88,804. This surge was met with approval from analysts who identified the $90,000 to $92,000 zone as a crucial short-term price level to achieve. The market gained momentum on March 24 following a statement from US President Donald Trump, who suggested that his upcoming tariff announcement on April 2 might be less severe than initially anticipated, as cars and microchips were removed from the list.

Ben Yorke, the vice president of ecosystem at WOO, commented that the White House's decision to scale back the threat of broad tariffs and adopt a more targeted approach indicates Trump's concern about potential economic repercussions. This positive market response was evident in the increase in Bitcoin futures open interest, suggesting that traders used leverage to open new margin-long positions.

The return of the Coinbase Premium, which measures the percentage difference between the BTC price on Coinbase Pro and Binance, along with a seventh consecutive day of spot BTC ETF inflows, indicates a resurgence in spot demand. This could signal an improvement in market sentiment, as Bitcoin's recent price action had been characterized by selling and the use of perpetual futures to drive price movements within the current range.

Data from SoSoValue shows US spot Bitcoin ETF net flows of $84.17 million, further supporting the notion of renewed institutional interest and confidence in the market. Lingling Jiang, a partner at DWF Labs, noted that both structural and narrative factors are aligning to drive Bitcoin's upward trend. At the micro level, the resurgence of ETF inflows, the expanding stablecoin market, and breakout patterns across alternative cryptocurrencies collectively signal confidence and potentially renewed institutional participation.

From a technical perspective, Bitcoin continues to trade below the range that defined its price action from November 2024 until February 2025. While the price trades above the 20-day and 200-day moving averages, it remains capped at the descending trendline resistance, which is also aligned with the 50-day moving average ($89,500 - $90,000). Independent market analyst Scott Melker observed that Bitcoin’s 4-hour relative strength index indicator shows a clear bullish trend, with a series of higher lows and higher highs.

Melker's analysis, posted on March 24, highlighted that this bullish trend was preceded by an oversold RSI with bullish divergence at the bottom on both daily and below charts. This technical analysis suggests that Bitcoin's recent price movements are supported by underlying market fundamentals and technical indicators, potentially paving the way for further gains.