Bitcoin Surges 6.83% to Six-Week High After Trump's Tariff Cut

Bitcoin experienced a brief surge, reaching a six-week high of $92,984.58 on April 23, 2025, marking a 6.83% increase within 24 hours. The cryptocurrency briefly surpassed the $93,000 to $93,500 range before retreating to its current level. This price movement followed President Donald Trump’s comments on China’s trade policies, which have significantly influenced market sentiment.

Trump announced a substantial reduction in tariffs on China, signaling a potential de-escalation of trade tensions. His remarks, which included a commitment to setting “tough but fair parameters” with countries like China and Japan, shifted market sentiment positively. This change has particularly affected Bitcoin, which is known for its sensitivity to macroeconomic developments.

Despite the positive market sentiment, there are cautionary signals. On-chain metrics indicate a drop of 146,000 BTC in demand over the past 30 days, suggesting a weakening of buying pressure. Momentum indicators are also at October lows, which could be a warning sign during the current rally. Additionally, while $381 million flowed into ETFs on Monday, other measures such as USDT market cap growth remain weak at $2.9 billion. Historically, sustained rallies have required at least $5 billion in USDT market cap growth, which does not seem likely in the current scenario.

Bitcoin is currently facing a significant resistance zone between $91,000 and $92,000. This resistance has been a persistent challenge, and the recent retraction to $92,984.58 indicates that volatility is still possible. The earlier tariff threats by Trump had created fears of a global recession, affecting various asset classes, including cryptocurrencies. However, with Trump softening his stance, the market pressure has been relieved, leading to a renewed investor confidence.

Bitcoin recovered from $79,000 to the current $92,984.58, reflecting a renewed investor confidence. The potential for Federal Reserve actions, such as interest rate cuts or quantitative easing, could further support the price of Bitcoin. However, external factors such as the Bitcoin halving effect, which occurred around 12 months ago, could also influence future price movements. Despite the halving effect, macroeconomic conditions and Trump’s trade policies continue to play a dominant role in Bitcoin’s price dynamics.