On Tuesday (April 29), Bitcoin rebounded to around $95,000, with White House officials revealing that President Trump is expected to lower auto tariffs. Meanwhile, there was significant news from within the US, as the Arizona legislative body passed the Bitcoin Reserve Bill, which has been submitted for the governor's approval. Looking ahead, the market is focusing on changes in the PCE inflation data.
According to the Wall Street Journal, Trump plans to take measures to prevent foreign car tariffs from stacking with other tariffs and to lower tax rates on foreign parts used in car manufacturing to mitigate the impact of car tariffs. These new policies are expected to be announced on Wednesday.
According to The Block, the Arizona State Legislature in the US has passed the Bitcoin Strategic Reserve Bill (SB 1025), which authorizes the state treasury and pension system to invest up to 10% of available funds in Bitcoin and other digital assets. This bill has been submitted to Democratic Governor Katie Hobbs for signing, and if enacted, Arizona will become the first state in the US to require public funds to invest in Bitcoin.
The bill was co-sponsored by Republican legislators Wendy Rogers and Jeff Weninger, aiming to incorporate cryptocurrency into public financial management. Currently, several states, including Iowa, Missouri, and Texas, are also considering similar legislation.
Another Bitcoin reserve bill SB 1373 in the state has also passed the House and has been submitted to Democratic Governor Katie Hobbs for signing. This proposal suggests establishing a digital asset strategic reserve fund managed by the state treasurer, with funding sources including seized assets and legislative allocations, allowing up to 10% to be invested in Bitcoin and other digital assets each fiscal year, with the possibility of lending without increasing risk.
Bitcoin has risen 10.37% in the past 7 days, but it may experience a period of range-bound fluctuations. Strong spot buying demand from Strategy (formerly MicroStrategy), progress on Bitcoin spot ETFs, and announcements from 21Shares and Coinbase all played a critical role in Bitcoin's rise to $95,700.
In addition to Strategy announcing a $1.42 billion acquisition of Bitcoin on April 28, the cryptocurrency market has been relatively calm this week, which may indicate a decrease in spot demand and a weakening of support levels for Bitcoin prices.
Additionally, this week's macroeconomic data will also be full of highlights. On April 29, the US Job Openings and Labor Turnover Survey (JOLTS) report will be released, which is expected to provide important clues on how the labor market is responding to the US-led trade war and tariffs.
The employment report will be released on Friday, and considering the recent volatility triggered by tariffs, the data may reveal that 'the economy could see a significant slowdown.'
US Core Personal Consumption Expenditures (PCE) data is expected to be released on April 30, which will provide the market with clear signals on whether there have been significant changes in US inflation.
The US ISM Manufacturing PMI data will be released on May 1. Recently, this data has reflected concerns from businesses due to the tariff war led by the US, causing them to pause business plans to watch the developments. If the report shows further deterioration in the ISM PMI, the market may react negatively.
According to market conditions, traders typically adjust their risk exposure during weeks of intensive macroeconomic data releases. Given the heightened volatility in April, traders seem to prefer a more cautious strategy, which further supports expectations that Bitcoin prices may enter a range consolidation this week.
Bitcoin Technical Analysis
FXStreet analyst Ibrahim Ajibade stated that during Trump's first 100 days in office, geopolitical tensions and market instability increased Bitcoin's appeal as a safe-haven asset.
Due to Bitcoin's immunity to geopolitical risks and the fragility of global supply chains, its resilience above $90,000 indicates its potential for continued growth.
On-chain data further supports this view, as CryptoQuant's exchange reserve chart shows a large amount of Bitcoin flowing out of trading platforms.
Since Trump's recent call for interest rate cuts, investors have withdrawn over $4 billion in Bitcoin from exchanges, with total exchange deposits dropping from $237.8 billion on April 22 to the current $233.8 billion.
As demand-driven factors persist, the continued reduction in exchange supply provides more possibilities for Bitcoin to break through the $100,000 mark in the short term.
In summary, Bitcoin continues to be strongly supported by demand after a period of volatility, and the ongoing decline in exchange reserves further enhances its potential to break through important price levels. As the market's focus on macroeconomic data increases and uncertainties from Trump's policy changes arise, Bitcoin is expected to continue strengthening in the short term, even welcoming new breakthroughs. Investors should closely monitor the upcoming key economic data to assess future trends.