The ongoing global trade war waged by U.S. President Donald Trump via heavy tariffs has created shockwaves across the global economy. According to Bitwise Asset Management CIO Matt Hougan, this economic turbulence has triggered a rally in Bitcoin as it broke the $90,000 barrier.
He said that “the way they’ll ‘fix’ the economy will make bitcoin rally harder.”
Thanks to dynamic macroeconomic conditions, BTC is surging. For instance, the weakening U.S. dollar, which recently touched its lowest point since March 2022, drained investors’ confidence in the U.S. economy. For them, BTC is working as a hedge.
Bitcoin Signals a Bullish Move
At the time of writing, BTC is trading at around $90,745 with a 3.24% spike in the last 24 hours, holding an overall market capitalization of $1.8 trillion.
The data states that the accumulation of BTC by institutions sparked a rally in the biggest cryptocurrency. Fidelity, BlackRock, ARK Invest, and BitWise are accumulating Bitcoin aggressively.
On April 22, BTC showed some crucial signs in its price activity that traders should pay attention to. The 50-day average price of Bitcoin was $85,000, and the actual price was higher than that, which is usually a sign that the price might keep going up.
Data from TradingView showed that the Bollinger Bands had widened, which is a tool that measures price movement. This means BTC could become more volatile, with bigger price changes likely ahead.
Also, the amount of BTC traded on Binance reached $10 billion, which is 30% more than the $7.7 billion traded the day before. This big increase in trading activity, also seen in other pairs like BTC/ETH and BTC/USDC.
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