Bitcoin now trades at over $90,000 driven by institutional inflows and macroeconomic shifts

Bitcoin has surged past the $90,000 mark, reclaiming a significant psychological threshold in a dramatic 48-hour rally that underscores its resilience and growing mainstream appeal. The world’s most valuable crypto currency is currently trading at above $90,059.82, reflecting a 7.44% increase over the past week and a 2.43% jump in the last 24 hours, according to market data. 

This rapid ascent, which saw the coin climb from a low of $83,445 on April 20, has been driven by a confluence of institutional adoption, bullish market sentiment, and macroeconomic factors, positioning the digital gold as an important asset in the global financial landscape.

The rally began on April 20, when it was trading at $83,445, recovering from a broader market dip earlier in the week. Our report yesterday captured the momentum when the coin was trading at $87,400 before topping $88,000 later in the day amid a sell-off in the equities markets, signalling its role as a potential macro hedge.

By April 22, Bitcoin breached $90,000, a milestone celebrated across social platforms. @AlvaApp highlighted heavy ETF inflows and a weakening US dollar, hitting three-year lows, as key catalysts, while @DiamondHandsDig pointed to escalating US-China trade tensions and global supply chain concerns as drivers of capital rotation into Bitcoin.

Read also: Bitcoin surges above $87,000, sparking bull run speculations

The surge coincides with significant institutional activity. Spot Bitcoin exchange-traded funds (ETFs), approved in January 2024, have seen inflows reach $110 billion in assets under management, representing over 1% of the entire ETF market. 

Analysts predict these ETFs could manage $190 billion by year-end, with institutional giants like BlackRock and Fidelity deepening their Bitcoin exposure. The recent swearing in of Paul Atkins, a crypto-friendly advocate, as SEC Chairman has further bolstered confidence, with expectations of streamlined regulations and approvals for 72 pending crypto ETF applications. This regulatory shift, coupled with President Trump’s pro-crypto policies.

A weakened dollar driving investors to Bitcoin

Technical indicators reflect the bullish momentum. Bitcoin’s Relative Strength Index (RSI) stands at 51.48, indicating growing demand without overbought conditions. The coin is trading within an ascending parallel channel, a pattern signalling sustained buying pressure. CryptoQuant’s Julio Moreno reported declining realised profit/loss margins, suggesting reduced selling pressure as investors hold for higher gains. The Fear & Greed Index, at 30, reflects cautious optimism.

Macroeconomic factors have played a critical role. The US dollar’s decline, sparked by Trump’s exploration of removing Federal Reserve Chair Jerome Powell, has driven investors toward Bitcoin as a hedge against fiat volatility. Escalating trade tariffs and fears of a US-China “cold war” have further amplified Bitcoin’s appeal as a safe-haven asset, reminiscent of its 2020 surge during pandemic-driven uncertainty.

The April 2024 Bitcoin halving, which reduced mining rewards to 3.125 BTC per block, continues to underpin the rally by constraining supply. Historical data shows post-halving bull runs, with the coin gaining 650% after the 2020 halving. Coinpedia predicts a 2025 peak of $168,000, while CNBC cites analysts forecasting $200,000, driven by sustained institutional adoption and regulatory clarity. However, risks remain, including potential corrections due to global market disruptions or unexpected regulatory hurdles, as cautioned by Bit Mining’s Youwei Yang.

Market activity reflects robust engagement. Its 24-hour trading volume reached $67.28 billion, with a market cap of $1.75 trillion. Exchange outflows have spiked, indicating strong stockpiling by long-term holders, per CryptoQuant. The surge has also lifted altcoins, with XRP, Solana, and Cardano gaining over 5% in the past 24 hours, signalling a broader market recovery.

As Bitcoin solidifies its role as a global financial instrument, the $90,000 breakthrough marks a watershed moment. With institutional conviction, favourable regulations, and macroeconomic tailwinds, Bitcoin’s trajectory appears bullish, though volatility remains a constant.