Bitcoin has again gone against what people thought it would do, rising to a session high of $88,500 and adding to its gains on April 1. The rally happens when activity on the spot market is increasing and institutional interest is growing, which makes short sellers scramble. However, geopolitical unrest and the fear of a global trade war could slow Bitcoin’s growth. With over $145 million in liquidation in just 12 hours, the market is experiencing a swingy mix of risk and hope.
Short squeeze boosts $88.5K rally
Short sales have had a big impact on Bitcoin’s quick rise in price. Three different data sources—CoinGlass, Kingfisher, and Velo—show that short contracts worth $69.4 million were closed, which caused Bitcoin to rise. Utilizing leverage to make gains has historically been challenging for Bitcoin. On the other hand, there was a significant rise in demand in the spot market during the most recent surge. This suggests that the gain might last longer than previous short-lived pumps.
Institutional buying revives optimism
Recent purchases by large investors have strengthened Bitcoin’s bullish view. GameStop, MARA, Metaplanet, and Strategy have all said they want to buy more Bitcoin, which shows they believe in the asset’s long-term value. The return of the Coinbase Pro premium also shows that buyers in the U.S. strongly desire it. Bitcoin is getting closer to breaking through the resistance of a three-month descending trendline. Traders closely monitor this rise to see if it can start a new uptrend.
Will Tariff Wars Affect Bitcoin?
Even though Bitcoin’s price broke out bullishly, global risks could still affect it. The U.S. hasn’t decided on its so-called “Liberation Day” taxes yet, which means that things could get worse with Israel, Mexico, and India. So far, these countries have either taken down their taxes on goods coming into the U.S. or made it clear they won’t do so. However, if there is a full-on global tariff war, it could affect risky investments like Bitcoin.
Conclusion
Bitcoin’s break above $88,500 broke through bearish support, and high spot market volumes helped the move. The market structure is shifting towards a more bullish view, and institutional demand is increasing.
