On Tuesday afternoon, Bitcoin BTC$111,445.47 rocketed beyond the $93,000 mark, soaring by nearly 7%. This upswing came amid a fresh wave of investor confidence and budding hopes for easing tensions in the U.S.-China tariff saga. Yet, CryptoQuant, an analytics powerhouse, cautioned that some challenges remain that could limit further gains.
Trade Truce Talk Sparks Market Rally
Investor spirits lifted sharply following remarks from U.S. Treasury Secretary Scott Bessent during a private JPMorgan gathering in the morning. Bessent described the ongoing tariff impasse with China as a “trade embargo” and conveyed that easing of the dispute seemed inevitable “in the very near future.” However, he tempered expectations by noting that a thorough agreement between the two countries might still take years to materialize.
Later that day, President Trump weighed in from the White House, reassuring markets by declaring that the U.S. tariffs on China — currently hitting 145% — “will come down substantially.” His comments helped allay fears of a deepening trade conflict.
Federal Reserve Stability and Crypto Climb
In addition, Trump dismissed rumors about firing Federal Reserve Chair Jerome Powell despite mounting pressure for rate cuts, providing some steadiness to financial markets.
Bitcoin followed this upbeat tone, inching close to $93,400 — its most robust showing since early March. Altcoins didn’t stay behind: Ethereum’s ether (ETH) catapulted 8% to breach $1,700, while dogecoin (DOGE$0.2410) and Sui’s native token (SUI) surged 8.6% and 11.7%, respectively. The broader crypto landscape mirrored the rally, with the CoinDesk 20 Index climbing 5.2%.
Traditional Markets Also Shine
Stocks bounced back from the previous day’s losses, the S&P 500 and the Nasdaq posting gains of 2.5% and 2.7%, respectively. In contrast, gold reversed sharply from an intraday high of $3,500, retreating by 1%.
“As funds shift toward safe havens and assets that hedge inflation, BTC along with gold emerge as prime beneficiaries in the flight from USD risk,” highlighted hedge fund QCP Capital on Telegram.
They pointed to reinvigorated capital pouring into spot U.S.-listed Bitcoin ETFs and the reappearance of the famed Coinbase price premium — a sign that institutional demand in America remains robust. Monday alone saw net inflows in BTC ETFs exceed $381 million, adding to a $107 million gain from Thursday, per data from Farside Investors.
Key Facts on Bitcoin’s Recent Market Moves
| BTC Price Peak | ~$93,400 | Since Early March |
| Ethereum Price | >$1,700 (+8%) | Last 24 Hours |
| DOGE Gain | 8.6% | Recent 24-Hour Period |
| SUI Token Increase | 11.7% | Recent 24-Hour Period |
| BTC ETF Net Inflows | $381M (Monday) | Two-Day Combined |
Resistance Clouds Bitcoin’s Rally
On the flip side, signs hint that Bitcoin’s breakout might not hold firm. Despite its sharp ascent, CryptoQuant analysts pointed out vulnerabilities lurking below the surface in their Tuesday briefing.
Bitcoin’s net demand has slipped by 146,000 BTC over the last 30 days — an improvement from a more dramatic fall in March, but still a net negative. Their demand momentum gauge, which measures fresh investor appetite, has plunged to the bleakest mark since October 2024.
Liquidity in the market also remains soft. The CryptoQuant report uses USDT’s market capitalization as a stand-in for crypto liquidity, which grew by $2.9 billion over the past two months — a figure below its typical 30-day average. Historically, Bitcoin’s rallies have aligned with USDT expansion north of $5 billion, a yardstick not yet breached.
Bitcoin now faces a critical resistance area between $91,000 and $92,000, aligned with the “Trader’s On-chain Realized Price” metric — often a tough ceiling in bearish stretches. CryptoQuant’s on-chain bull score tags the present market tone as bearish, implying a potential cooldown or retracement could be in store should sentiment wane.
Market Recap
- Trump’s trade comments lifted Bitcoin and altcoins.
- Institutional inflows into BTC ETFs remain strong.
- On-chain data signals fragile buying momentum.
- USDT liquidity growth suggests limited fuel for sustained rallies.
- Resistance near $91K–$92K stands as key battlefront.