Bitcoin ($BTC) has surged above $94,000, marking its highest price since early March 2025. The latest rally has sparked renewed optimism in the cryptocurrency market, with many investors and analysts speculating that this could mark the beginning of a sustained bull run.
This upward trend follows a complex series of market movements, including a relatively short-lived bull run in late 2024 and a period of correction that ended just weeks ago.
The previous bull run began in November 2024, immediately after Donald Trump’s re-election in the United States. During this time, Bitcoin’s price climbed above $100,000 for the first time in history, peaking below $110,000.
However, the rally was brief, lasting just over a month and ending by mid-December. What followed was a two-month period of sideways trading, with Bitcoin fluctuating around the $100,000 mark until the end of February 2025.
Unlike typical market behaviour, a correction did not follow immediately after the bull run. Instead, the correction began at the end of February and brought Bitcoin’s price down to just below $75,000.
Despite the decline, the cryptocurrency managed to retain a substantial portion of its gains. Before the election, Bitcoin was trading around $69,000, and even after the correction, it remained significantly above that level.
In contrast to traditional markets, Bitcoin’s performance stood out. The S&P 500 index dropped by approximately 13% from its October highs, while Bitcoin remained up by about 7%.
The correction now appears to have ended, with Bitcoin stabilising around $85,000 late last week and then surging past $90,000 as the markets reopened.
One of the key macroeconomic indicators influencing Bitcoin’s movement is the US Dollar Index (DXY). At the time the correction began, the DXY was around 105.
After an initial drop from 110, the Index declined further and dipped below 100 in early April, a level last seen in July 2023. A weaker dollar typically benefits risk-on assets like Bitcoin. The DXY’s drop has created favourable conditions for a Bitcoin rally.
Historical data supports this outlook. For instance, in 2017, the second half of a major Bitcoin bull run began in late April during Trump’s first term.
However, analysts warn that a short-term rebound in the DXY above 101 could introduce new resistance for Bitcoin, potentially slowing down or reversing its current momentum.
What is fuelling Bitcoin’s climb?
The recent surge in Bitcoin’s price is also driven by a confluence of technical and institutional factors. As of 23 April 2025, Bitcoin has reached a market capitalisation of $1.86 trillion, overtaking Alphabet and becoming the fifth-largest asset globally.
The digital currency saw a 6.52% increase in a single trading session, accompanied by a spike in trading volume, which rose to $55.5 billion—well above the average of $43.3 billion.
A major catalyst for this surge has been a short squeeze, with the market witnessing $618 million in liquidations in just one day. Of this, $317 million came from Bitcoin positions.
Data from Coinglass shows that the liquidation heat map is heavily concentrated between the $92,000 and $94,000 levels, especially on major exchanges like Binance and Bybit. The forced closure of over-leveraged short positions has contributed to the rapid price increase.
Bitcoin has also broken through several key resistance levels, including its 50-day, 100-day, and 200-day exponential moving averages (EMAs). These technical indicators are often viewed as strong support or resistance zones.
With Bitcoin now trading comfortably above $93,800, the bullish trend appears technically sound. The top coin is currently over 10% up weekly and almost 7% up daily.
Open interest in perpetual futures has also surged, indicating growing confidence among investors. According to Velo, the cumulative notional open interest rose by 10% to $17.83 billion, the largest single-day increase since March.
This increase was largely driven by activity on Binance and other major trading platforms. “Bitcoin’s Open Interest surged faster than its Price, with most positions originating from Binance”, noted CEO of Alphractal Research, Joao Wedson.
He warned, however, that a significant portion of these are long positions, which could introduce volatility in the short term.
Institutional investors are playing a critical role in the current rally. Strategy, a division of Kronos Research, recently purchased 6,556 $BTC, raising its total holdings to 538,200 $BTC—valued at approximately $47 billion.
Such large-scale acquisitions have also reinforced Bitcoin’s image as a serious investment vehicle.
Bitcoin’s appeal as a safe-haven asset
Beyond market dynamics, recent political developments in the US have also contributed to Bitcoin’s rise. President Donald Trump recently intensified criticism of Federal Reserve Chair, Jerome Powell, calling for immediate interest rate cuts.
In a post on Truth Social, Trump labelled Powell “Mr. Too Late” and argued that there is now almost no inflation, suggesting that current interest rate policy is politically motivated to favour President Joe Biden.
The US dollar responded by dropping to a three-year low, further enhancing Bitcoin’s attractiveness as a hedge against currency devaluation. During this market uncertainty, Bitcoin surged past $87,000, marking its highest level in over six weeks. Analysts credit this rally to increased global liquidity and strong institutional demand.
Recent comments from Treasury Secretary, Scott Bessent, about easing tariffs on Chinese goods also helped stabilise markets. Trump further added that he does not intend to dismiss Powell, a statement that somewhat reduced the political tension.
These developments contributed to a broader risk-on sentiment, benefiting Bitcoin and other tech-focused assets.
Exchange-traded funds (ETFs) have also played a role in the rally. Despite a week of relatively low ETF volumes—totalling $7.14 billion—analysts believe that interest in these products is likely to recover as market volatility continues.
The approval of spot Bitcoin ETFs has legitimised the asset class in the eyes of many investors, especially those in the institutional sector.
The CEO of Strike, Jack Mallers, recently suggested that Bitcoin is gaining political influence, even hinting at potential executive orders related to the cryptocurrency.
“There’s serious talk about executive orders involving Bitcoin”, Mallers said, underscoring how far Bitcoin has come from its early days as a fringe technology.
Meanwhile, financial commentator, Robert Kiyosaki, has projected that Bitcoin could rise to between $180,000 and $200,000 by year-end. While such predictions should be taken with caution, they highlight the increasingly bullish sentiment within the crypto space.
Bitcoin’s dominance continues to grow, now accounting for over half of the total cryptocurrency market capitalisation. While Ethereum and other altcoins have also experienced gains, Bitcoin’s trajectory seems to be driven by a combination of technical strength, macroeconomic trends, and institutional support.
As the digital asset approaches its next psychological barrier at $100,000, the market remains cautiously optimistic. With the dollar weakening and institutional adoption rising, Bitcoin’s role as a global financial asset is being firmly established.
