TLDR
- Bitcoin’s price jumped above $87,500, reaching a one-month high after a period of stability around $84,000-$85,000
- The surge coincides with the US dollar hitting a three-year low amid concerns over Fed independence after Trump hinted at firing Chair Powell
- Technical analysts point to Bitcoin breaking through descending resistance from the all-time high, with key resistance at $88,804
- Institutional ownership continues to grow, with MicroStrategy and other public companies now holding nearly 700,000 BTC
- Non-empty Bitcoin wallets have surged to 54.72 million, just below the all-time high of 54.74 million, suggesting growing retail interest
Bitcoin has surged above $87,500, reaching its highest level in nearly a month as the US dollar stumbled to a three-year low. The price jump comes amid growing tensions between President Trump and Federal Reserve Chair Jerome Powell, with Trump openly calling for Powell’s removal.
The world’s largest cryptocurrency gained approximately 3.2% on Monday, climbing to $87,518 by early morning trading. This marks Bitcoin’s highest value since April 2, allowing it to recover most of the losses it experienced following Trump’s tariff announcements earlier this month.
The price movement caught the attention of crypto analysts and enthusiasts alike. Scott Melker, host of The Wolf of All Streets Podcast, told his one million followers that Bitcoin is “breaking through descending resistance from the all-time high.”
According to Melker, the price needs to move beyond $88,804 “to break the series of lower highs and lower lows.”
$BTC Daily
Breaking through descending resistance from the all time high.
Needs to get above $88,804 to break the series of lower highs and lower lows.
Is it time? pic.twitter.com/0lX0b7rSEe
— The Wolf Of All Streets (@scottmelker) April 21, 2025
Another analyst using the handle JAVON MARKS suggested that Bitcoin has invalidated a falling wedge pattern with its latest price increase. This technical development has historically resulted in major rallies for the cryptocurrency.
Sometimes it's just that simple.$BTC pic.twitter.com/GGrlusIp5k
— JAVON⚡️MARKS (@JavonTM1) April 21, 2025
Dollar Weakness Boosts Bitcoin
The US Dollar Index fell to its lowest point since March 2022 as markets reacted to potential political interference in monetary policy. White House economic advisor Kevin Hassett stated on Friday that Trump and his team were examining the legality of firing Powell.
Trump himself posted on Truth Social that “Powell’s termination cannot come fast enough!” while calling for interest rate cuts.
When the dollar loses value, investors often look for alternative assets to protect their wealth. Bitcoin, like gold, is viewed as a hedge against currency devaluation. Gold prices were also trading at record highs on Monday.
The cryptocurrency also found support as confidence in traditional currencies weakened due to the political uncertainty. Market participants frequently turn to Bitcoin during periods of instability in traditional financial systems.
Institutional Ownership Grows
A key factor in Bitcoin’s resilience has been the growing institutional presence in the market. According to data from Bitwise Asset Management, publicly traded companies now hold nearly 700,000 BTC, with MicroStrategy dominating with over 77% of that amount.
The corporate Bitcoin accumulation curve has been almost vertical since 2020. MicroStrategy, led by Michael Saylor, began accumulating Bitcoin before the 2021 bull run and has continued to buy regardless of price fluctuations.
These corporations appear to be systematically absorbing the supply rather than engaging in random buying. This steady accumulation establishes price floors below which Bitcoin is unlikely to fall.
Technical Indicators Show Mixed Signals
Despite the bullish sentiment across the community, the Relative Strength Index (RSI) points to a potential pullback in the near future. The RSI is currently around 73, suggesting the asset may have entered overbought territory.
However, other metrics support the possibility of further price increases. Bitcoin’s exchange netflow has been negative over the past week, indicating a shift from centralized platforms toward self-custody methods. This trend typically reduces immediate selling pressure.
The weekly chart for Bitcoin has remained bullish since the token regained its position above an ascending trend line. While the Chaikin Money Flow (CMF) indicator has dropped below zero in the long term, suggesting some market weakness, the weekly RSI is attempting to rise above the average zone.
Analyst Ali Martinez recently noted that Bitcoin market peaks have historically coincided with surges in retail activity. He pointed out that the rise from $70,000 to the all-time high of $110,000 in January lacked significant retail participation, suggesting the market top has not yet been reached.
Non-empty Bitcoin wallets have surged to 54.72 million, just below the all-time high of 54.74 million. This growth in wallet addresses is seen as a bullish signal as it indicates broader market participation.
The price action comes as Bitcoin enthusiasts predict a potential run to $100,000 in the coming months. Analyst 0xNobler believes “the Golden Bull Run” could start this week, suggesting Bitcoin has yet to match its performance from previous cycles in 2016-2017 and 2020-2021.
Bitcoin was also supported by signs of possible tariff negotiations with major U.S. trading partners. President Trump said last week that “big progress” was made after meeting with a Japanese trade delegation, while reports indicate China may be open to beginning trade talks.
Altcoins also showed strength on Monday, with Ethereum rising 2.6% to $1,647.57 and XRP jumping 2.7% to $2.1276. Solana, Cardano, and Polygon all posted gains as well.
Bitcoin is expected to maintain a healthy ascending pattern and test resistance at $88,500. A breakout above this level could push the price past $90,000 and potentially toward the $100,000 mark.
