Bitcoin prices have rebounded strongly from a low of $75,000 (on April 7) to above $95,500 on April 28, increasing more than 8% in a week.
Bitcoin rebounds strongly from the low
According to Fortune, Bitcoin prices surpassed $95,000 at the end of April, thanks to strong cash flow from Bitcoin ETFs, with over $3 billion pouring in over the past week - the highest level since December 2023.
The inflow of cash into Bitcoin ETFs is seen as a positive signal, reflecting the increasing interest of institutional investors in the world’s largest cryptocurrency. Specifically, Bitcoin prices have rebounded strongly from a low of $75,000 (on April 7) to above $95,500 on April 28, increasing more than 8% in a week.
This upward trend is supported by the market's optimistic sentiment about the possibility of the U.S. reaching an agreement soon regarding tariff negotiations from the time of President Donald Trump.
Mr. Gadi Chait, Investment Director at Xapo Bank commented: “This is not just ordinary price volatility but also a signal that investors are ready to return to the market. The combination of strong cash flow into ETFs and the activity in purchasing call options could push Bitcoin past the $100,000 mark in the near future.”
Not only Bitcoin, but other major cryptocurrencies also experienced strong growth such as: Ethereum up 11%, XRP up 9%, and Solana up 8%. This indicates that the cryptocurrency market is recovering after a strong bearish period.
In early April, the stock and cryptocurrency markets plummeted sharply after Mr. Trump announced plans for new tariffs, causing the S&P 500 to lose $2.5 trillion in just one day.
However, the decision by the U.S. government to temporarily suspend most tax levels for 90 days (except for China) has helped the market recover strongly. The S&P 500 saw its strongest gain since 2008, while Bitcoin rose 9% on April 9 and has now increased a total of 14% since the suspension announcement was made.
Mr. James Butterfill, Head of Research at CoinShares assessed: “Bitcoin is increasingly seen as a safe-haven asset in the context of economic instability. Unlike stocks affected by tariffs and declining corporate profits, Bitcoin remains unaffected and is increasingly sought after by investors as a safe asset.”
Forecasts suggest Bitcoin prices could peak at $120,000 in Q2 2025.
In a report dated April 28, Mr. Geoff Kendrick - Head of Digital Assets Research at Standard Chartered Bank forecasted that Bitcoin prices could reach a record $120,000 in Q2 2025 and maintain a target of $200,000 by the end of this year.
Mr. Kendrick cited the yield spread of U.S. Treasury bonds - an index closely correlated with Bitcoin prices, currently at its highest level in 12 years. Additionally, the accumulation trend of large investors (whales) and the shift of U.S. investors towards non-U.S. assets also support the growth of Bitcoin.
Notably, this expert believes that the cash flow into ETFs is showing a shift away from gold, and Bitcoin is emerging as a more effective safe-haven choice, as the global financial system faces many risks.