Bitcoin jumped past $94,000 this week, fueled by a shift in U.S.-China trade talk tone. President Trump’s softer stance on tariffs sparked a rally in both stocks and crypto. Investors interpreted his comments as a signal that trade tensions may ease, sending risk assets higher. The S&P 500 gained over 90 points, led by tech giants like Nvidia, Meta, and Microsoft. This sudden optimism pushed Bitcoin above key support levels on its daily charts. BTC now trades well above its 50-, 100-, and 200-day moving averages, a sign that buyers remain in control. While resistance at $95,000 holds strong, bulls have their eyes set on $96,800. If Bitcoin clears that level, $98,000 might be next. Momentum remains positive.
Investors Shift to Risk-On as S&P 500 Eyes New Highs
Stock markets rallied for a third straight day, with the S&P 500 climbing nearly 2%. Big Tech was the engine behind the surge, driven by hopes that a rate cut might come in June. Comments from a top Fed official added fuel, suggesting the central bank could act if inflation data supports it. Trump’s wavering but overall friendlier tariff talk helped the rally. While some officials denied formal negotiations, the market chose to believe a deal might happen. That was enough for investors to bet on growth stocks and crypto again. The Nasdaq and Dow also posted solid gains. Meanwhile, China stood firm, rejecting claims of any talks. But the mood on Wall Street had already turned. The belief that Trump may back off aggressive tariffs helped risk assets, including Bitcoin, find fresh momentum.
Bitcoin Rally Pressures Bears and Lifts ETF Inflows
Bitcoin’s move above $90,000 caught many short sellers off guard. More than $390 million in leveraged short positions were liquidated between April 21 and 22. Spot Bitcoin ETFs saw inflows of over $2.2 billion, showing that institutional demand is back in play. Investors are also watching Twenty One Capital, a new venture by SoftBank, Cantor Fitzgerald, and Tether. The company plans to buy Bitcoin through equity and bonds, starting with 42,000 BTC. This kind of big-money interest adds confidence to the bull case. As Bitcoin consolidates above $93,000, the pressure on bearish traders grows. If BTC breaks $95,000, another $700 million in shorts could be wiped out. This short squeeze potential keeps the market hot and buyers hungry.
Bitcoin Builds Strength as It Decouples From Stock Market
Although Bitcoin and the S&P 500 rallied together this week, analysts say BTC is showing signs of breaking away. While stocks responded to economic data and Fed talk, Bitcoin’s strength came mostly from spot buying and ETF flows. That’s a bullish sign for long-term holders. Traders are watching futures and margin markets closely. The long-to-short ratio is down from earlier highs, suggesting less confidence among bearish players. Still, open interest remains near all-time highs, meaning the market is active and loaded. If Bitcoin holds above $90,000 for much longer, it may signal a structural shift. Decoupling from traditional markets could turn Bitcoin into a true hedge rather than just another risk asset. For now, momentum favors the bulls.
Trump, China, and the Path Ahead for Investors
Trump’s evolving stance on China is shaping both the crypto and equity markets. His recent promise not to fire Fed Chair Powell and hints at tariff cuts suggest he’s trying to calm markets before the election cycle heats up. That shift has eased recession fears and helped Bitcoin and the S&P 500 rally side by side. But there’s still plenty of uncertainty. China denies any talks are happening. The White House continues to send mixed signals on auto and truck tariffs. That leaves investors with one eye on headlines and the other on price charts. Still, the sentiment has shifted. Bitcoin is above $94,000. The S&P 500 is climbing. And investors are taking more risks again. Whether the rally lasts will depend on politics, policy, and how long the bulls can keep control.
