Bitcoin has reclaimed the spotlight in global markets, surging to $88,400 following renewed political pressure on the Federal Reserve.
The rally comes after President Donald Trump intensified his public criticism of Fed Chair Jerome Powell, stoking investor uncertainty. This, combined with Trump’s tariff threats, triggered a sharp sell-off across U.S. equities, prompting investors to seek alternative assets like goldโand increasingly, Bitcoin.
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Traditional markets took a hit this week. The S&P 500 fell 2.4%, extending its year-to-date losses to 12%. The Dow Jones and Nasdaq both dropped over 2%, with the tech-heavy Nasdaq down nearly 18% so far in 2025. Meanwhile, the U.S. dollar weakened to its lowest level since 2022.
In contrast, gold surged past $3,500 per ounce, reaching a new all-time high, reinforcing its role as a safe haven in times of turmoil.
Bitcoin Surges Amid Political and Market Uncertainty
Bitcoinโs momentum has accelerated in recent days, briefly topping $89,500 on Tuesday, its highest level since early April.ย
The move coincides with growing macroeconomic tension and rising investor demand for non-correlated assets.
Bitcoin Futures Open Interest also rose sharply, increasing by $2.4 billion in under 36 hours, while Bitcoin Spot Volume surged from $2.9 billion to $8.0 billion, nearly tripling in the same period, according to crypto analytics from Glassnode.
Bitcoin dominance has reached 63.6%, further suggesting that Bitcoin continues to lead the market. However, experts remain divided on whether this signals a prolonged bull run for Bitcoin or an upcoming altcoin season.
Resistance Ahead for Bitcoin
Broader economic factors influence Bitcoinโs current price movement, but technical analysis highlights key resistance levels. Bitcoin faces significant resistance between $91,000 and $92,000.
CryptoQuantโs Head of Research, Julio Moreno, believes that unless market sentiment turns strongly bullish, Bitcoin may face strong resistance around $91Kโ$92K, where historical trader buying behavior forms a major resistance level.
CryptoQuant also suggests that Bitcoin is likely experiencing a typical market correction, not a full bear market, as its current price of $88.8K remains above key support levels despite being slightly below recent highs.
Altcoin Season on the Horizon?
Despite Bitcoinโs current dominance, cryptocurrency traders predict that its market leadership is temporary.ย
Crypto trader @Astronomer forecasts that once Bitcoin breaks out decisively, its dominance may peak and eventually reverse, triggering a strong altcoin rally later this year.
According to this analysis, Bitcoin’s breakout could occur between late spring and early summer, setting the stage for altcoins to catch up as Bitcoin finishes its breakout and its dominance wanes.
Why This Matters
Bitcoinโs steady rise, even as stocks fall and the dollar weakens, highlights its growing role as a hedge against market turmoil.
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