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Bitcoin Surges 15% to $90,000 Amid USD Weakness and Halving Event

Coin WorldTuesday, Apr 22, 2025 9:52 am ET

1min read

Bitcoin (BTC) surged to $90,000 for the first time since March 7, marking a significant milestone in its recent price action. This upward movement comes after weeks of consolidation, during which the cryptocurrency had been trading within a range of $76,000 to $87,350. The recent price action indicates renewed bullish momentum, driven by a shift in investor sentiment away from USD-denominated assets amid concerns over inflation, rate cut uncertainty, and fiscal instability.

The Bitcoin community celebrated the anniversary of the latest halving event, which occurred on April 20, 2024. This event reduced the block reward from 6.25 BTC to 3.125 BTC, reinforcing Bitcoin's deflationary nature. Historically, halving events have been key catalysts for long-term bullish cycles, and the current rally is seen as a continuation of this trend. The reduction in new supply issuance, coupled with dwindling exchange reserves and strong institutional demand, has contributed to the price surge.

The US Dollar Index (DXY) experienced its sharpest single-day decline in April, dropping to 98.30. This decline signals a shift in capital allocation away from dollar-backed assets, as investors seek alternative stores of value. The weakening confidence in US fiscal stability has further fueled the demand for Bitcoin, positioning it as a potential hedge against traditional monetary policy tools.

Market participants reacted swiftly to the shift in sentiment, turning to Bitcoin as a safe haven amid mounting skepticism over traditional investments. The cryptocurrency's price action on Monday marked its strongest daily candle in over two weeks, positioning it firmly above the short-term $90,000 resistance zone that had previously capped gains in mid-April.

The recent price surge has been interpreted as a continuation of the bullish trend, with many analysts believing that supply pressure is increasingly outpaced by institutional demand. Community sentiment across social media remains overwhelmingly positive, with major influencers and developers highlighting the symbolic and economic significance of the 3.125 BTC threshold. According to the current market data, investor sentiment around the BTC Fear and Greed Index remains in the “fear” zone, suggesting that the rally could be in its early phases.

As the week unfolds, the bullish momentum in Bitcoin's price action is expected to continue, with technical indicators supporting further upside. The Relative Strength Index (RSI) at 60.52 indicates strengthening momentum without signaling overbought conditions. While the bullish case targets $88,500 in the short term, a drop below $85,300 would negate this setup. For now, momentum favors buyers, with the technical structure supporting continuation.

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