On April 22, 2025, the price of Bitcoin surged to $94,000. What caused this?

Weak Dollar and Rate Cut Expectations: The dollar index fell to a three-year low, coupled with rising expectations of Federal Reserve rate cuts, leading to accelerated capital flow into Bitcoin and other inflation-hedging assets.

The Trump administration included Bitcoin, Ethereum, and four other cryptocurrencies in the national strategic reserve and promoted public blockchains as standards for financial infrastructure through the White House cryptocurrency summit, releasing long-term favorable policies.

Japanese listed company Metaplanet significantly increased its Bitcoin holdings, its “Asian version of MicroStrategy” strategy has sparked global institutional demand for crypto asset allocation. Meanwhile, Bitcoin spot ETFs continue to attract investment, such as BlackRock's IBIT increasing its holdings by 455 Bitcoins in a single day, exacerbating Bitcoin's liquidity tightening and the “institutional control” effect.

Amid uncertainties in the global economy and financial markets, Bitcoin's safe-haven attributes as “digital gold” are gradually becoming apparent. The risk of “stagflation” in the U.S. economy is accelerating capital reallocation, the traditional “dollar-U.S. stocks” dual engine is failing, while Bitcoin's 30-day volatility has dropped to 25%, reflecting a strategic shift of funds from risk assets to non-sovereign assets.

On the evening of April 22, the three major U.S. stock indexes rose by more than 2.5%, with technology stocks leading the way. The rise in U.S. stocks was mainly driven by increased hopes for peace between Russia and Ukraine, as well as Trump's statement that he had no intention of firing Federal Reserve Chairman Powell. The correlation between the cryptocurrency market and U.S. stocks has strengthened, with the rise in U.S. stocks driving overall heating in the cryptocurrency market, benefiting Bitcoin as well.