Bitcoin Surges 7.6% to $90,532 as U.S. Dollar Hits Three-Year Low

Bitcoin experienced a significant surge on Tuesday, reaching an intraday peak of $90,532. This rally marks a 7.6% increase since Sunday’s low, driven by a combination of macroeconomic factors and institutional demand. The rise in Bitcoin's value coincides with the U.S. dollar hitting three-year lows, a development linked to renewed trade tensions and tariff disputes.

The broader economic landscape is characterized by a mix of uncertainty and volatility. Major Wall Street benchmarks have declined by roughly 16% from their February highs, as investors grapple with the implications of President Donald Trump’s tariff policies. These policies have led to increased levies on Chinese goods and the imposition of "reciprocal" tariffs on allies, creating a complex and uncertain trading environment.

Despite the ongoing trade negotiations, which have yet to yield concrete agreements, Bitcoin has continued to attract capital. Spot gold, another traditional safe haven, has also seen a significant increase, surpassing $3,400 an ounce and lifting its market value above $20 trillion for the first time. This surge in gold's value has been driven by a similar flight to safety, with investors seeking stability amidst global economic uncertainty.

Bitcoin's recent gains have been bolstered by a surge in institutional demand. U.S. spot-Bitcoin ETFs absorbed a net $381 million on Monday, the largest single-day inflow since February. This influx of capital marks a reversal from the net outflows that plagued the market in March and early April, indicating a renewed interest from institutional investors.

Analysts have offered varying explanations for Bitcoin's outperformance. Hedge-fund manager Benn Eifert suggests that Bitcoin's value is largely denominated in a basket of global currencies, rather than the U.S. dollar, which has been collapsing. Macro commentator TXMC, however, contests the idea that an upswing in global money supply is the dominant driver, arguing that currency moves and model overreactions are more significant factors.

Looking ahead, short-term traders are closely watching a narrow resistance shelf that has capped every rally since late February. Analyst Jelle describes this area as the "main event," suggesting that reclaiming $92,000 could propel Bitcoin to even higher levels. On-chain metrics support this view, with Bitcoin pressing into the Traders’ Realised Price band at roughly $91k–$92k. However, analysts caution that structural hurdles, such as the Daily 200MA and previous range lows, could pose challenges to further gains.

Momentum gauges have begun to show signs of improvement, with Cold Blooded Shiller noting a "first RSI 50 crossover on BTC in 3 months." This indicator suggests that counter-trend momentum could be building, potentially driving further gains. However, Daan Crypto Trades reminds followers that Bitcoin is approaching a critical resistance area, and a decisive push higher would be necessary to overcome these hurdles.

At the time of reporting, Bitcoin was trading at $90,394, reflecting the ongoing volatility and uncertainty in the market. The combination of macroeconomic factors, institutional demand, and technical indicators suggests that Bitcoin's price movements will continue to be closely watched by traders and investors alike.