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Bitcoin experienced a notable upswing for the third consecutive day, benefiting from a wider market relief rally spurred by President Donald Trump’s more conciliatory stance regarding China tariffs and a tempered approach towards Federal Reserve Chair Jerome Powell.
As reported by Coin Metrics, the leading cryptocurrency’s value increased by 1.3%, bringing it to approximately $92,654. Earlier in the day, it peaked at $94,499.86, marking its highest price since March 3. This latest climb indicates that Bitcoin has regained nearly half of its losses since the beginning of the year, positioning it close to break-even for 2025.
Market strategist Joel Kruger from LMAX noted that this recent price increase is largely attributed to investors taking advantage of a lower asset price. He highlighted Bitcoin’s established role as a significant avenue for portfolio diversification and a safeguard against macroeconomic unpredictability and fluctuations in the U.S. dollar.
In tandem with Bitcoin’s rise, exchange-traded funds (ETFs) linked to its price experienced a surge in inflows, reflecting growing interest in Bitcoin as a potential hedge amid ongoing volatility in the stock market and declining dollar value. On Tuesday, Bitcoin ETFs saw an impressive $936.43 million in inflows, marking their most robust performance since January 17, according to data from SoSoValue.
This week’s bullish momentum has also pressured short sellers, compelling them to purchase Bitcoin to cover their positions, which has contributed to the upward price movement. Data from CoinGlass revealed that over the past day, Bitcoin experienced more than $300 million in short liquidations across various exchanges.
While there are signs that demand for spot Bitcoin has been waning on a monthly basis, this decline appears to be slowing down, as noted by Julio Moreno, the head of research at CryptoQuant. He cautioned that current indicators of demand growth still have substantial ground to cover to reach levels seen late in 2024, which are crucial for maintaining a rally and achieving new all-time highs.
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