- Price breaks $93K but retracts, facing $91-92K resistance.
- Trump softens China tariffs, boosting market sentiment.
Bitcoin reached a six-week high of $92,984.58 on April 23, 2025, with a 6.83% increase during 24 hours. The cryptocurrency was only briefly able to overcome the $93,000 to $93,500 range before retreating to its current level. It is the latest in a run of market rattle following President Donald Trump’s comments on China’s trade policies.
Trump also said that he will substantially reduce the tariffs on China. This could be a sign of de-escalating trade tensions, and he also said he would not play hardball. This has led investors to be optimistic and drive Bitcoin to new highs.
Conversely, there exists a post on X that suggests an alternative implication. Onchain metrics show that even as Bitcoin pumped to $93,000, there was a drop of 146,000 BTC in demand over the past 30 days. Momentum indicators are also at October lows, which is a cautionary signal during the rally.
The X post also notes that even as $381 million flowed into ETFs Monday, other measures, such as USDT market cap growth, are weak at $2.9 billion. In the past, sustained rallies required at least $5 billion USDT market cap growth to sustain, which does not look like it will happen.
Resistance Levels and Market Dynamics
Bitcoin is currently confronted with a significant resistance zone that lies between $91,000 and $92,000, as stated in the X post. This has been a stubborn hurdle with the smart money paying close attention to the price action. Recently, this resistance has been broken above $93,000, however, the retraction to $92,984.58 implies that the volatility is still possible.
According to CNBC on April 7, 2025, his earlier tariff threats had created fears of a global recession that touched everything from asset classes to cryptocurrencies. The Dow Jones Industrial Average had fallen for the past three sessions on those concerns.
Now that Trump has softened his stance, it seems the pressure has been relieved. His comments on Truth Social about setting “tough but fair parameters” with countries like China and Japan have shifted market sentiment. This change has affected Bitcoin, in particular, since it is susceptible to reacting to macroeconomic developments.
On April 8, 2025, Newsweek’s report also states that the crypto community was divided over Trump’s tariff policies. However, this asset also fell sharply to $74,500 earlier this month, due to tariff-related market turbulence, despite being a borderless asset, some still believed it would be immune to trade barriers.
For instance, investor confidence is renewed, as Bitcoin recovered from $79,000 to the current $92,984.58. The potential of Federal Reserve actions, such as interest rate cuts or quantitative easing, could also support the price of Bitcoin, according to CoinCorner’s Danny Scott in the Newsweek article.
On-Chain Metrics Signal Caution
The price has gone up, but on-chain data tells a different story. An X post mentioned that the 146,000 BTC demand decline over 30 days reflects a weakening of buying pressure. This metric, combined with low momentum, implies that the current rally may not have the foundation for such an extended trend upwards.
The fact that there are positive total inflows into exchange-traded funds (ETFs) amounting to $381 million is not sufficient to counteract the concerns of the broader market. It is not possible for the $2.9 billion increase in the market value of USDT to be sufficient to power rallies of Bitcoin in the range of $5 billion.
External factors such as the Bitcoin halving effect could influence future price movements. In the past, prices have gone up following the last halving (which was around 12 months ago) due to a decrease in supply. Other macroeconomic conditions still play a dominant role, but so do Trump’s trade policies.
