The cryptocurrency market saw a major rebound overnight; what happened?

Recently, the cryptocurrency market has experienced a remarkable rebound, with Bitcoin's price instantly breaking through $94,000, causing shorts to face massive liquidations, resulting in 160,000 people liquidated globally within 24 hours. The drastic fluctuations have left investors feeling as if they are on a roller coaster. What exactly triggered this sudden market upheaval? Where will cryptocurrency prices head in the future?

Behind this rebound in the cryptocurrency market is primarily Trump’s personal statement. Although he expressed frustration over the Federal Reserve's Powell not quickly lowering interest rates, he has no intention of firing Powell, which has given the market a sense of reassurance. At the same time, he stated that the U.S. tariffs on China will be significantly reduced from the current level of 145%. While it won't drop to zero, China will be satisfied with the final tax rate.

U.S. Treasury Secretary Mnuchin also privately revealed in an internal meeting with investors at JPMorgan that the high tariff of 145% is unsustainable and that interest rates will be lowered soon. This news undoubtedly provided a strong boost to the market, stabilizing market sentiment. It is rare for both the President and the Treasury Secretary to step in at the same time, first testing the market reaction in a closed-door meeting, and then having the President set the tone, with synchronized actions that make one suspect it is a meticulously designed 'script.'

Under the united call of these two big shots, U.S. stocks and Chinese concept stocks surged wildly, with Bitcoin leading a massive counterattack of altcoins. That night, Bitcoin spot ETF saw a net inflow of $900 million, hitting a new high since Trump took office. Meanwhile, gold, as a safe-haven asset, plummeted in response and faced heavy sell-offs.

Another major piece of news is circulating in the market. According to Bloomberg, details about the U.S. strategic reserve of Bitcoin may be announced in the coming weeks. As early as the beginning of March this year, Trump signed an executive order proposing the establishment of a national Bitcoin strategic reserve, including Bitcoin, Ethereum, and four other currencies on the list, and requested the Treasury Secretary to submit a feasibility assessment report within 60 days. Now, with less than two weeks until the 60-day deadline of the executive order, market expectations regarding this event have also become a catalyst for the rebound in Bitcoin prices.

Doubts about the Federal Reserve's independence have further accelerated Bitcoin's spillover premium effect. The market is unpredictable; do not blindly chase high prices and become a gambler before establishing a solid foundation! Let’s look forward to the big event in May and June!