Bitcoin Holds $95,000 as Trump's Tariff Progress Boosts Market Sentiment

Bitcoin traders are closely watching the cryptocurrency's price movements, hoping for a breakout to new highs. This optimism is fueled by reports that President Trump has indicated progress in tariff negotiations, which has brought a sense of relief and recovery to various financial markets. Bitcoin has been trading around $95,000, with investors eagerly awaiting a decisive breakout after a period of consolidation. The recent relief on auto tariffs has contributed to a more positive market sentiment, which is reflected in Bitcoin's price.

The rise in Bitcoin's realized capitalization to a new all-time high further supports the bullish outlook. This metric, which measures the value of all Bitcoin that has been moved on the blockchain, has been increasing. The increase in realized cap suggests that more investors are holding onto their Bitcoin, indicating growing confidence in the cryptocurrency's long-term value.

Trump's tariff policies have been a significant factor in the volatility of financial markets, including Bitcoin. The liquidation intensity on the long side has been high, posing a risk of cascading liquidations. However, the recent progress in tariff negotiations has provided a sense of stability, which could help mitigate some of the risks associated with high liquidation intensity.

The impact of Trump's tariff policies extends beyond Bitcoin, affecting other financial markets as well. For instance, gold prices have been volatile, slipping below $3,300 as traders eye US data, Trump's tariff decisions, and Fed rate cut signals. The shifting risk sentiment has made gold prices particularly sensitive to changes in the economic landscape.

Analysts have noted that the crypto market has been in a prolonged consolidation phase, with the overall market cap approaching $3 trillion. This consolidation is seen as a potential accumulation of strength for further movement. The next major trigger for a breakout is likely to be Friday’s labor market data. A global positive event could push the market cap towards the $3.5 trillion area, with strong movements expected in altcoins.

Bitcoin has been experiencing volatility, forming a consolidation range between $93,000 and $95,000 since April 25. This range is building momentum for a potential breakout. The average funding rate for Bitcoin has been negative over the past week, which is rare and indicates intense whale activity both on and off exchanges. Historically, periods of negative financing rates have been followed by strong upward trends in Bitcoin, suggesting that whale accumulation could be positioning Bitcoin for a potential upward move.

Macroeconomic sentiment remains cautious as traders globally eye the next steps made by President Trump in the ongoing tariff tussles. Trump acknowledged that his tariff program had a perception problem and posed a significant political risk, but he remained determined to push on. He indicated that potential deals with South Korea, India, and Japan were already in place and that a deal with China was progressing in his favor.