Bitcoin surged past the $93,000 mark on Tuesday, lifting the broader crypto market along with it, as renewed hopes for easing U.S.-China trade tensions sparked a wave of investor enthusiasm. The CoinDesk 20 Index, which tracks the top digital assets, gained 7% in the past 24 hours, reflecting the widespread bullish sentiment.
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What’s Driving the Surge?
The rally was fueled by positive comments from top U.S. officials. Treasury Secretary Scott Bessent was quoted as saying at a closed-door JPMorgan gathering that the current tariff standoff with China was “unsustainable.” He went on to say that some easing could arrive “very shortly,” though he warned that a full-fledged trade deal could remain years away.
Later in the day, President Trump contributed to the momentum by saying that U.S. tariffs on China, now at 145%, “will come down substantially.” The comment reassured investors about avoiding an intensifying trade war and helped build market confidence.
Altcoins Ride the Wave
The bull run wasn’t just for Bitcoin. Ethereum’s ether (ETH) surged more than 8% to hit above $1,700, while meme token dogecoin (DOGE) and recent newcomer Sui (SUI) rose by 8.6% and 11.7%, respectively.
Meanwhile, U.S. equities rebounded from their losses lately, with the S&P 500 and Nasdaq climbing 2.5% and 2.7%. Gold, which had reached a record $3,500 at one point in the day, retreated 1% as capital flowed into other assets.
Institutional Interest Returns
Analysts at QCP Capital highlighted increasing institutional demand for Bitcoin, pointing to strong inflows into spot BTC ETFs. Over $381 million flowed into these ETFs on Monday, building on Thursday’s $107 million inflow. The return of the “Coinbase premium” — when prices on Coinbase exceed those on other exchanges — suggests renewed interest from U.S. institutional buyers.
A Word of Caution
Despite the rally, some underlying market metrics signal potential fragility. According to CryptoQuant, Bitcoin’s demand has decreased by 146,000 BTC over the past 30 days. Although better than March’s sharp drop, it remains a bearish sign. The firm’s demand momentum indicator has also hit its most pessimistic level since October 2024.
Additionally, market liquidity is still lagging. Tether (USDT) — often used as a proxy for crypto liquidity — grew by only $2.9 billion in the last two months, below the $5 billion threshold that typically supports stronger Bitcoin rallies.
Bitcoin now faces a key resistance zone between $91,000 and $92,000, corresponding to its “Trader’s On-chain Realized Price” — a level that has historically acted as a barrier during bearish trends.
Final Thoughts
Although the current price action indicates increasing optimism and robust institutional inflows, prudence is still justified. Bitcoin can encounter resistance in the near term, and on-chain data indicate that the rally might not be yet based on firm foundations. Investors must monitor trade action, ETF inflows, and liquidity metrics to determine if this rally has momentum or might be due for a breather.
