Bitcoin recovered to price levels last seen in late March before setting around $87,000 on Monday. Bitcoin’s rally was supported by a broader recovery in risk assets as traders reacted to the latest macro developments in the United States. The total crypto market capitalisation rose by nearly 2% over the past 24 hours to $2.85 trillion , while the Crypto Fear & Greed Index ticked up two points to 39. Altcoins mirrored the trend, and a number of top tokens were seen sitting in profits when writing. Why did Bitcoin go up? A multitude of factors were helping Bitcoin’s recovery, although a lot of the positive momentum followed after the US Dollar Index dropped to its lowest level since March 2022, sparking fresh demand for alternative assets. Political jitters also played a role with Trump’s last week comments about firing Fed Chair Jerome Powell and his push for interest rate cuts stirred concerns over central bank independence. That, in turn, dented confidence in the US dollar and revived Bitcoin’s appeal as a hedge against both currency debasement and political instability. Markets tend to get uneasy when monetary policy looks like it’s being steered by politics, and with Trump openly calling for Powell’s removal and rate cuts, the dollar took a hit. Gold, a traditional safe haven, surged to new all-time highs on Monday, reinforcing the idea that investors were actively seeking protection from fiat volatility. Bitcoin, often dubbed “digital gold,” appeared to benefit from the same flight-to-safety sentiment, especially among younger or crypto-native investors. On the geopolitical front, Bitcoin also drew strength from Trump’s remarks on tariff talks with Japan and China. The prospect of easing trade tensions lifted overall risk appetite, encouraging capital to rotate back into equities and crypto. For Bitcoin, this meant added support from both macro hedging flows and improved sentiment across global markets. Researchers at QCP Capital noted that institutional interest, which had waned due to recent trade tensions, appeared to be returning. This was reflected in the positive flows into spot Bitcoin exchange-traded funds (ETFs), which saw net inflows of $13.4 million last week, following more than $700 million in outflows the previous week. Will the rally continue? As covered by Invezz last week, today’s rally saw Bitcoin finally break above the Ichimoku Cloud resistance, a level that had repeatedly capped upside momentum in recent weeks. With the cloud aligned around the $85K region, Monday’s move marked a technical win for the bulls, but whether BTC can hold above this zone and flip it into support remains to be seen. According to Arthur Hayes, Bitcoin’s breakout may be signalling the start of a much larger move. The BitMEX co-founder believes that upcoming US Treasury buyback operations could act as a major catalyst, injecting fresh liquidity into the system and fuelling further gains for Bitcoin. Treasury buybacks involve the government repurchasing its own bonds from the market, a move that can ease financial conditions and increase the availability of capital. Hayes described this potential liquidity wave as the “Bazooka,” suggesting it might be the final window for investors to accumulate Bitcoin before it crosses into six-figure territory. Others, like Bitget chief analyst Ryan Lee, pointed to the weakening US dollar as a key catalyst likely to fuel Bitcoin’s continued rise. According to Lee, the combination of strong trading volume and a confirmed breakout from a descending wedge pattern on the weekly chart suggests that Bitcoin could be gearing up for a test of the $90,000 resistance level. Notably, this breakout pattern was also anticipated by analysts like Crypto Caesar, who shared a similar setup last week. See below. BTC/USD weekly chart. Source: Crypto Caesar With this recent move, Bitcoin has also “successfully confirmed a breakout beyond the multi-month downtrend,” according to fellow analyst Rekt Capital, who noted that the flagship crypto is now pressing beyond the 21-week EMA, a key technical resistance level around $86,600. Rekt Capital pointed out that a weekly close above this level, followed by a successful retest, would act as a strong confirmation signal for further upside. The 21-week EMA has historically served as a dynamic support and resistance line during major Bitcoin market cycles. Rekt Capital @rektcapital · Follow #BTC Bitcoin is now pressing beyond the green 21-week EMA resistanceThe key confirmation signal for a breakout will be a Weekly Close above the green EMA (~$86600) followed by a post-breakout retest of it into new support (light blue circle) $BTC #Crypto #Bitcoin 4:18 pm · 21 Apr 2025 196 Reply Copy link Read 20 replies However, not everyone was convinced the rally would hold. Bloomberg’s senior commodity strategist, Mike McGlone, warned that Bitcoin could still face significant downside pressure, especially if gold’s momentum continues to accelerate. McGlone noted that risk assets like Bitcoin are showing signs of reverting to their long-term means, pointing out that BTC’s 200-week moving average currently sits near $46,300 — roughly 47% below current levels. When writing, Bitcoin was up roughly 4% on the day, trading at $87,329. Altcoins surge alongside Bitcoin The total altcoin market capitalisation rose by 8% over the past day to $1.15 trillion, with several top tokens notching double-digit gains. Stacks (STX) led the top altcoins, surging 13.9% to $0.70 as its trading volume spiked nearly 300% to $143 million. The move was largely driven by Bitcoin’s rally, coupled with STX breaking out of a falling wedge, a classic bullish pattern. Decentraland (MANA) followed with a 12% gain to $0.31, boosted by a breakout above a multi-week ascending trendline and rising derivatives activity. Fartcoin (FARTCOIN) was up 10.3% to $0.91, riding the broader meme coin wave that lifted the sector’s market cap by 3.3% to $50.7 billion. Other major meme tokens like DOGE, SHIB, PEPE, and BONK also recorded notable gains between 3 and 8%. Source: CoinMarketCap The post Bitcoin tops $87K amid political jitters, STX, MANA, FARTCOIN jump over 10% appeared first on Invezz