Catenaa, Thursday, April 24, 2025-Bitcoin rallied to $94,000 on Wednesday, propelling the total cryptocurrency market capitalization above $3 trillion for the first time in six weeks, as institutional inflows and signs of thawing US-China trade tensions boosted investor sentiment.
The surge followed remarks from US officials indicating a softer stance on China tariffs and Federal Reserve leadership. Treasury Secretary Scott Bessent and President Donald Trump signaled openness to renewed talks with Beijing and downplayed speculation over removing Fed Chair Jerome Powell.
The market responded swiftly. Bitcoin rose 12% in the past week, outpacing the Nasdaq and S&P 500. Ether climbed above $1,800, and Solana reached $150. The GMCI 30 index rose 7%, while open interest in crypto derivatives surged over $124 billion.
Analysts said a $554 million short squeeze added fuel to Bitcoin’s rally. A BTC-focused ETF saw $936 million in inflows—its seventh-largest on record—signaling institutional accumulation.
Cantor Fitzgerald CEO Brandon Lutnick, son of US Commerce Secretary Howard Lutnick, revealed a $3 billion bitcoin fund with backers including SoftBank and Tether, echoing MicroStrategy’s crypto-heavy playbook.
Despite the excitement, experts urged caution. Technical indicators suggest Bitcoin is overbought, and macroeconomic risks linger. Analysts warned that sustaining prices above $90,000 will require strong volume and stable funding rates.
Market observers believe the rally could continue if geopolitical calm persists. But volatility may return as US-China negotiations resume and inflation remains in focus.
