The last rally follows a significant pivot in U.S. monetary and trade policy, with the Trump administration signaling a more dovish stance.
U.S. Treasury Secretary Scott Bessent hinted at tariff cuts on Chinese goods, and President Donald Trump dismissed rumors about the potential firing of Federal Reserve Chair Jerome Powell. The announcements were welcomed by investors eager for stability and renewed global trade optimism.
“Our fears about tariffs seem to have reached their maximum,” said Aurelie Barthere, chief research analyst at Nansen. “Markets were waiting for the slightest sign that we were becoming active again.”
Crypto Market Roars Back on Short Squeeze Momentum
The shift in sentiment triggered a massive short squeeze worth $554 million, with Bitcoin positions accounting for nearly half, according to BRN’s Chief Research Analyst Valentin Fournier. Ethereum (ETH) also saw significant action, contributing around 25% of total liquidations.
“This has pushed Bitcoin above the critical $90,000 resistance, trading above $93.5K,” Fournier wrote in a report. “We may now be entering a new accumulation phase, especially as institutional flows begin to reverse after months of outflows.”
The combination of relaxed trade rhetoric, rising risk appetite, and technical breakouts appears to have reignited both retail and institutional participation.
Analysts Urge Caution Amid Euphoria
While the rally has injected excitement into the crypto space, experts are warning against overexuberance. Technical indicators suggest Bitcoin is currently overbought, increasing the likelihood of a short-term pullback.
Bitfinex analysts echoed this concern, stating that for the rally to sustain, BTC must hold above the $90,000 level with support from spot market volume and balanced funding rates.
“We’re not out of the woods yet, but this could be the beginning of something much bigger if conditions hold,” one analyst noted.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/bitcoin-surges-past-94k-as-market-nears-3-trillion-amid-u-s-policy-shift/