Bitcoin Surges Past $101K After Trade-War Dip: Institutional Buying Signals Market Strength
This week’s dramatic turn of events saw great volatility in Bitcoin (BTC) as world markets responded to President Trump’s most recent trade proposals.
The top cryptocurrency BTC/USD has shown amazing endurance despite declining to $91,000, rapidly rising beyond $101,000 as institutional investors grabbed the chance to accumulate at reduced rates.
How Trump’s Trade Tensions Affected the Crypto Market
After Trump said tariffs on Chinese imports will rise by 10%, then further duties on Canada and Mexico, the bitcoin market came under pressure. These actions set off further general market concern since the US Dollar Index approaches values not seen since November 2022 while the S&P 500 dropped 1.8%.
Although Bitcoin only touched $91,530, its comeback was noticeably more than that of other cryptocurrencies, many of which lost more than 20%. This difference emphasizes Bitcoin’s growing position as a more consistent asset inside the ecosystem of cryptocurrencies.
Institutional Interest Remains Strong
Institutional activity points to great underlying confidence in Bitcoin’s long-term future despite market volatility. One of the biggest corporate Bitcoin holders, MicroStrategy, claimed to have maintained its 451,107 BTC worth, which comes out to be almost $30 million. The company’s mentality is clearly changing when it decides to stop its aggressive acquisition plan after 12 straight weeks of purchases.
According to analysis by CryptoQuant, institutional investors kept building on the Coinbase platform while retail traders participated in panic selling—shown by the positive Coinbase Premium Gap (CPG). This conduct implies that bigger participants find the present price levels to be a suitable starting point.
Bitcoin’s Technical Indicators and Derivatives Market
During the correction, the derivatives market has exhibited remarkable consistency. The funding rate of Bitcoin went only slightly negative, suggesting balanced posture between longs and shorts. At roughly 630,000 BTC, the futures market kept constant open interest; the annualized premium dropped only from 11% to 9%.
With Bitcoin’s 4-hour Relative Strength Index (RSI) falling below 30, only the fifth such event since August 2024 showed a perhaps positive indication. According to historical statistics, these oversold conditions have before shown good chances for accumulation.
BTC/USD Outlook and Market Sentiment
Declining to 44, the Fear & Greed Index had fallen into “fear” zone for the first time since October 2024. This represents a significant change from the current “extreme greed” rating of 72, maybe creating a contrarian buying chance based on market analysts.
Looking ahead, while Bitcoin has demonstrated resilience by maintaining support above $90,000, several factors could influence its near-term trajectory:
- The outcome of trade negotiations between the US and its trading partners
- Potential expansion of tariffs to the European Union
- Global economic response to new trade barriers
- Institutional buying behavior at current price levels
Although the immediate price action could still be volatile, the high institutional interest and past record of recovery from oversold conditions point to Bitcoin maybe finding support at present levels. More general macroeconomic factors, however, might restrict any upside over the $100,000 barrier in the near future.
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