Original Title: Bitcoin Price Touches $87K for First Time Since Trump's Liberation Day
Original author: Vince Dioquino
Original source:
Compiled by: Daisy, Mars Finance
The price of Bitcoin has broken the $87,000 mark for the first time since "Trump Liberation Day".
"After Liberation Day, key market sentiment indicators such as the Fear & Greed Index and the S&P 500 RSI(14) have bottomed out," an analyst told Decrypt. During Monday's Asian trading session, the price of bitcoin broke above $87,600, hitting its highest level since early April. Analysts say investors are accelerating their shift to hard assets as inflation concerns persist.
This round of increase is mainly driven by "the rise in global liquidity, propelled by the expansion of M2 money supply and the weakening of the dollar," Vincent Liu, Chief Investment Officer of Kronos Research, told Decrypt. M2 money refers to forms of assets that are slightly less liquid than cash, such as savings accounts and money market funds.
Bitcoin has increased by about 3.6% in the past 24 hours, with a trading volume of at least $24.5 billion, outperforming other non-stablecoin cryptocurrencies during the afternoon session in Asia.
Liu pointed out that the financial environment is becoming more accommodative, prompting investors' funds to "shift towards hard assets like Bitcoin and gold." Gold has first broken through the $3,400 per ounce mark during the Asian trading session, with its year-to-date increase expanding to 29%, according to Trading Economics data.
New bottom formation for Bitcoin
These new highs appeared less than a month after former President Trump's so-called "Liberation Day tariffs" were implemented, a policy that led to "a sharp decline in overall asset prices," Ryan Yoon, chief analyst at Tiger Research, told Decrypt.
"During this period, key sentiment indicators such as the Fear and Greed Index, S&P 500 RSI(14), etc., built a bottom," Yoon said, adding that investors then began to "look for rebound opportunities, seemingly shifting funds towards Bitcoin," which he believes has "higher growth potential than gold."
The Relative Strength Index mentioned by Yoon (RSI) is used to track market momentum, typically measured over a 14-day period to evaluate the performance of securities (in this case, the S&P 500 index).
As funds shift towards Bitcoin, the US dollar index (DXY) plummeted to 98.5, hitting a new low since February 2022. There have been reports that President Trump is considering replacing Federal Reserve Chairman Powell. Over the past three months, the index has fallen by about 10%.
With this momentum, the market "achieved a preliminary recovery" after Trump announced a 90-day tariff exemption for countries that did not retaliate on April 10. In response, on-chain indicators such as "NUPL and MVRV-Z" also showed signs of improvement, Yoon added.
Investors need to develop strategies that are "in line with their own risk tolerance and investment goals" to prepare for the "short-term volatility" phase referred to by Yoon.
Coinglass data shows that institutional confidence is recovering, although the process is slow based on the Bitcoin spot ETF fund flows. Last week, there was a net inflow of $12.7 million into Bitcoin ETFs, barely reversing the net outflow trend of the previous week, but it is still the lowest weekly inflow level this year.
"The correlation between Bitcoin, gold, and stocks is worth close attention," noted QCP Capital analysts in the April 21 Asia market briefing, "the notion of Bitcoin as a safe-haven asset or an inflation hedge is heating up again. If this trend continues, it may provide new support for institutional allocation of Bitcoin."
However, analysts remain cautious about whether a new bull market will begin. Liu from Kronos Research stated that it "depends on the signals released by the Federal Reserve during the FOMC meeting on May 6-7." If the Federal Reserve takes a dovish stance, it may "maintain capital inflows," while "clear trade policy guidance" could provide stability for the overall market.
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Global capital is voting with its feet, with BTC's annualized volatility outpacing gold's 29% rise for the first time.
Original Title: Bitcoin Price Touches $87K for First Time Since Trump's Liberation Day
Original author: Vince Dioquino
Original source:
Compiled by: Daisy, Mars Finance
The price of Bitcoin has broken the $87,000 mark for the first time since "Trump Liberation Day".
"After Liberation Day, key market sentiment indicators such as the Fear & Greed Index and the S&P 500 RSI(14) have bottomed out," an analyst told Decrypt. During Monday's Asian trading session, the price of bitcoin broke above $87,600, hitting its highest level since early April. Analysts say investors are accelerating their shift to hard assets as inflation concerns persist.
This round of increase is mainly driven by "the rise in global liquidity, propelled by the expansion of M2 money supply and the weakening of the dollar," Vincent Liu, Chief Investment Officer of Kronos Research, told Decrypt. M2 money refers to forms of assets that are slightly less liquid than cash, such as savings accounts and money market funds.
Bitcoin has increased by about 3.6% in the past 24 hours, with a trading volume of at least $24.5 billion, outperforming other non-stablecoin cryptocurrencies during the afternoon session in Asia.
Liu pointed out that the financial environment is becoming more accommodative, prompting investors' funds to "shift towards hard assets like Bitcoin and gold." Gold has first broken through the $3,400 per ounce mark during the Asian trading session, with its year-to-date increase expanding to 29%, according to Trading Economics data.
New bottom formation for Bitcoin
These new highs appeared less than a month after former President Trump's so-called "Liberation Day tariffs" were implemented, a policy that led to "a sharp decline in overall asset prices," Ryan Yoon, chief analyst at Tiger Research, told Decrypt.
"During this period, key sentiment indicators such as the Fear and Greed Index, S&P 500 RSI(14), etc., built a bottom," Yoon said, adding that investors then began to "look for rebound opportunities, seemingly shifting funds towards Bitcoin," which he believes has "higher growth potential than gold."
The Relative Strength Index mentioned by Yoon (RSI) is used to track market momentum, typically measured over a 14-day period to evaluate the performance of securities (in this case, the S&P 500 index).
As funds shift towards Bitcoin, the US dollar index (DXY) plummeted to 98.5, hitting a new low since February 2022. There have been reports that President Trump is considering replacing Federal Reserve Chairman Powell. Over the past three months, the index has fallen by about 10%.
With this momentum, the market "achieved a preliminary recovery" after Trump announced a 90-day tariff exemption for countries that did not retaliate on April 10. In response, on-chain indicators such as "NUPL and MVRV-Z" also showed signs of improvement, Yoon added.
Investors need to develop strategies that are "in line with their own risk tolerance and investment goals" to prepare for the "short-term volatility" phase referred to by Yoon.
Coinglass data shows that institutional confidence is recovering, although the process is slow based on the Bitcoin spot ETF fund flows. Last week, there was a net inflow of $12.7 million into Bitcoin ETFs, barely reversing the net outflow trend of the previous week, but it is still the lowest weekly inflow level this year.
"The correlation between Bitcoin, gold, and stocks is worth close attention," noted QCP Capital analysts in the April 21 Asia market briefing, "the notion of Bitcoin as a safe-haven asset or an inflation hedge is heating up again. If this trend continues, it may provide new support for institutional allocation of Bitcoin."
However, analysts remain cautious about whether a new bull market will begin. Liu from Kronos Research stated that it "depends on the signals released by the Federal Reserve during the FOMC meeting on May 6-7." If the Federal Reserve takes a dovish stance, it may "maintain capital inflows," while "clear trade policy guidance" could provide stability for the overall market.