Bitcoin Price Tops $91K Amid Trade Optimism; ETH, DOGE, SUI Lead Crypto Gains

Bitcoin exceeds $91,000 as optimism over U.S.-China trade relations rises, with altcoins like ETH and DOGE also gaining. Treasury Secretary Bessent’s comments are fueling the rally, but signs of underlying weakness in demand persist. Bitcoin is approaching critical resistance and liquidity issues loom, suggesting potential challenges ahead.

Bitcoin (BTC) has crossed a significant milestone, hitting over $91,000 on Tuesday—an almost 5% leap amid lofty expectations of a thaw in U.S.-China trade relations. Investors are buzzing with optimism following remarks from Treasury Secretary Scott Bessent, who labeled the current tariff standoff as “unsustainable” and suggested that de-escalation could arrive soon. It seems the broader crypto market is riding this wave, as the CoinDesk 20 Index saw a 5.2% increase in the same 24-hour period.

For much of the afternoon, Bitcoin reached as high as $91,700, its strongest pricing since early March. Other cryptocurrencies, including Ethereum’s ether (ETH) and dogecoin (DOGE), joined the rally with gains of 8% and 8.6%, respectively. Sui’s native token (SUI) blossomed, climbing 11.7%. These figures paint a rosy picture of market recovery, but analysts urge caution.

Bessent made these comments in private at a JPMorgan event, where he conveyed that the existing trade tensions amounted to a “trade embargo.” Despite his optimism, he pointed out that reaching a more comprehensive resolution could still take years. Meanwhile, U.S. equities reflected a recovery from prior declines, with the S&P 500 and tech-heavy Nasdaq up 2.5% and 2.7% respectively at session close. Even gold, known for being a reliable safe haven asset, saw a notable dip.

A recent analysis from QCP Capital hinted at a shift in investor behavior, saying, “As capital rotates into safe-haven and inflation-hedging assets, BTC and gold are proving to be key beneficiaries of the exodus from USD risk.” The firm underlined increasing inflows into BTC ETFs, noting $381 million in net inflows just this past Monday. This suggests American institutional interest is on the rise as BTC appears to regain some ground.

However, not everything sparkles in this bullish landscape. According to CryptoQuant’s latest report, signs of underlying market weakness persist. Over the last month, apparent Bitcoin demand has decreased by 146,000 BTC, with the demand momentum metric dropping to depressingly low levels not seen since late 2024. It’s a concerning indicator for investors hopeful for sustained upward movement.

The report highlights a lack of robust market liquidity, which is measured by the growth of USDT. Although USDT’s market cap saw an increase of $2.9 billion over the last two months, this figure is still under the 30-day average. Looking back, BTC often flourished during periods when USDT grew by more than $5 billion, a milestone that remains unachieved this time. Furthermore, Bitcoin now faces a crucial resistance zone between $91,000 and $92,000—levels historically linked to downturns in bearish markets.

In summary, while the surge in Bitcoin prices from optimistic trade discussions is noteworthy, analysts temper this excitement with reminders of the precarious state of the market. The current on-chain dynamics suggest a tough battleground ahead in the coming days.

Krisztian Sandor covers U.S. markets with a focus on the intersection of cryptocurrency and traditional finance. He holds personal investments in BTC, SOL, and ETH, and received his education at NYU, where he focused on business and economic reporting.

Bitcoin’s price surge to over $91,000 comes on the back of renewed optimism linked to U.S.-China trade talks, reflecting a broader recovery in cryptocurrency markets. Yet, despite the gains, various indicators suggest lingering vulnerabilities within the Bitcoin ecosystem, such as decreased demand and market liquidity challenges. Investors should remain cautious as Bitcoin approaches significant resistance levels that could temper further increases in price.

Original Source: www.coindesk.com