Bitcoin Eyes $90K Amid Tariff Exemptions, Yield Drop
U.S. Treasury yields retreated sharply on Monday, coinciding with Bitcoin’s strongest weekly performance since mid-January an intersection of macroeconomic shifts and digital asset momentum that is prompting renewed market speculation.
During the New York trading session, the 10-year Treasury yield decreased by 8.2 basis points to 4.40 percent and the 2-year yield declined by 8 basis points to 3.88 percent.
The bond market fell right after U.S. traders learned about temporary tariffs exemptions for major tech imports including phones, chips, and computers on April 12. The government’s decision to help U.S. businesses during manufacturing transition creates unpredictable trade risks between America and other countries.
Resistance Levels Challenge Bitcoin’s Bullish Momentum
The White House maintained that these tariffs are temporary but investors perceived this shift as weakening U.S.-China trade tensions, which changed their risk assessment.
During the week, Bitcoin grew 6.79% to reach $86,100 as it recovered 15% from its annual minimum at $74,500. Institutional traders and market analysts now track Bitcoin closely because of its recent market surge. Trading analytics platform Material Indicators noted:
“Bitcoin bulls now face strong technical and liquidity-based resistance between the trend line and the 200-day MA. Expecting “Spoofy” to move asks at $88k and $92k before they get filled.”
Financial professionals disagree about whether Bitcoin could maintain its price lift due to decreasing interest rates. With lowering Treasury interest rates, fixed-income investors may shift assets into riskier financial instruments like cryptocurrencies. Soft inflation numbers push Bitcoin to counter its role as an anti-inflationary asset.
US Inflation Drop Pauses Bitcoin Buying Interest
In March, the US Consumer Price Index revealed that inflation dropped to 2.4% annual growth from 2.8% in February and had not been this low in two years. The recent drop in inflation makes people delay buying Bitcoin but also reduces how long this buying pause will last.
A few crypto market indicators display signs that buyers are returning to the market. According to Joao Wedson and Alphractal founder, the decreasing Perpetual-Spot Gap on Binance indicates that bearish market forces may be gradually subsiding. Market trends show that falling prices between futures contracts and actual BTC trade usually leads to big BTC increases.
According to Wedson’s posting on X, market buyers returning with strong confidence will cause this indicator to move from negative to positive. Market participants should watch their steps because the trading indications appeared before the recent bear market stretch from 2022 through 2023.
Market trends between traditional economics and crypto indicators create a hard-to-predict path for Bitcoin becoming more enticing for investors. Market behavior this period will guide us toward a lasting bull market or indicate if it represents momentary strength.
