#MarketRebound

Expert Analysts Unpack Bitcoin's Surge and What Lies Ahead

Bitcoin ($BTC ) surged past the $94,000 mark today, pushing the total cryptocurrency market valuation close to the $3 trillion threshold—an impressive milestone reflecting renewed investor confidence.

This rally follows a significant pivot in U.S. economic policy. The Trump administration recently signaled a softer stance on monetary policy and international trade. Treasury Secretary Scott Bessent hinted at easing tensions with China, while President Donald Trump dismissed rumors of Federal Reserve Chair Jerome Powell’s dismissal and suggested potential tariff reductions on Chinese imports. These signals sparked optimism across global financial markets.

“Our fears around trade tariffs may have peaked,” said Aurelie Barthere, Chief Research Analyst at Nansen. “Investors were poised, just waiting for any indication of a policy shift.”

The crypto market responded swiftly. A major catalyst was a $554 million short squeeze, with nearly half attributed to Bitcoin. Ethereum accounted for another 25% of the total liquidations, according to BRN Chief Research Analyst Valentin Fournier.

“This breakout pushed Bitcoin beyond the critical $90,000 resistance level, now trading above $93,500,” Fournier noted in a client update. “This could mark the beginning of a new accumulation phase, with institutional interest rebounding after months of outflows.”

He also emphasized that easing trade tensions are fueling broader risk appetite, lifting equities and boosting sentiment across asset classes.

Still, analysts urge caution. While bullish momentum is clear, Fournier flagged that Bitcoin appears technically overbought, suggesting a short-term correction could be likely. Bitfinex analysts echoed the sentiment, noting that the sustainability of the rally hinges on Bitcoin holding above $90,000 with strong spot volume and balanced funding rates.