Bitcoin Surges 6.79% as US Treasury Yields Decline

Bitcoin traders are targeting a price of $90,000, driven by the recent decline in US Treasury yields and adjustments to tariff policies by the Trump administration. On Monday, April 14, the 2-year and 10-year US Treasury yields decreased, following Bitcoin's strongest weekly performance since early January. Bitcoin gained 6.79% over the past week, prompting questions about the sustainability of this upward momentum.

The 10-year Treasury yield fell by 8.2 basis points to 4.40% during the New York trading session, while the 2-year Treasury yield dropped by 8 basis points to 3.88%. This decline in yields was influenced by potential tariff exemptions on smartphones, computers, and semiconductors, aimed at giving US companies time to relocate production domestically. However, President Trump emphasized that these exemptions are temporary.

The tariff exemptions, announced on April 12, coincided with a bullish week for Bitcoin. After hitting new yearly lows at $74,500, the price of Bitcoin surged 15% to $86,100 between April 9 and 13. The easing of US Treasury yields presents a mixed outlook for Bitcoin. Lower yields reduce the appeal of fixed-income assets, potentially increasing capital flow into riskier assets like Bitcoin. However, the uncertainty surrounding the temporary nature of these exemptions and ongoing trade tensions with China could introduce further price volatility for Bitcoin.

As an inflation hedge, Bitcoin continues to garner mixed opinions. Recent trade policy uncertainties have heightened inflation fears, bolstering Bitcoin's narrative as a store of value. However, recent US inflation data indicated a cooling trend, with the Consumer Price Index (CPI) for March 2025 showing a year-over-year inflation rate of 2.4%, down from 2.8% in February. This marks the lowest inflation rate since February 2023, which could be indirectly bearish for Bitcoin in the short term.

Bitcoin faces significant price hurdles between $88,000 and $90,000. Trading resource Material Indicators noted that Bitcoin maintained a bullish position above its 50-weekly moving average and quarterly open at $82,500. A strong weekly close suggests that Bitcoin is less likely to revisit its previous weekly lows anytime soon. The analysis indicated that Bitcoin bulls face strong technical and liquidity-based resistance between the trend line and the 200-day moving average, with potential resistance points at $88,000 and $92,000.

Alphractal founder Joao Wedson suggested that Bitcoin may be nearing a bullish reversal, as the Perpetual-Spot Gap on Binance—a key indicator tracking the price difference between Bitcoin’s perpetual futures and spot markets—has been narrowing since late 2024. Wedson highlighted that this shrinking gap, currently negative, signals fading bearish sentiment. Historical trends from 2020–2021 and 2024 show that a positive gap often leads to a Bitcoin rally. However, Wedson cautioned that such negative gaps persisted during the 2022–2023 bear market.