Bitcoin Tops $87K Amid Dollar Weakness and Uncertainty
Key Takeaways
- Bitcoin (BTC) has once again surpassed the 87,000 USD mark.
- Analysts attribute the rise to weakness in the US dollar.
- The price increase occurred during low trading activity – a warning sign for potential corrections.
- Experts say a sustainable upward trend depends on a breakout above 89,000 USD.
US Dollar Under Pressure – Bitcoin Benefits
Bitcoin managed to reach the 87,000 USD mark again over the Easter holidays. Analysts point to the weakness of the US dollar as the reason for this increase. The US Dollar Index (DXY), a measure of the strength of the US currency against a basket of other currencies, fell to its lowest level since March 2022.
The cause: political uncertainty in the United States. Former President Donald Trump publicly questioned the independence of the US Federal Reserve. He threatened to fire Fed Chair Jerome Powell – a move considered potentially inflationary.
According to Greg Magadini of Amberdata, such interference in monetary policy could strengthen both Bitcoin and gold as so-called “safe havens.
Gold and Bitcoin Show Parallel Movement Again
Notably, gold simultaneously reached a new all-time high. In recent weeks, the price movements of Bitcoin and gold had decoupled. Now both assets are once again showing a positive correlation. This suggests that investors are fleeing to value-stable assets – triggered by geopolitical tensions and economic uncertainty.
Caution Amid Low Trading Activity
Despite the price increase, analysts warn against excessive euphoria. The rise above 87,000 USD occurred on relatively low trading volume. This could indicate short-term momentum rather than a sustainable trend.
The pseudonymous analyst “StockMoney Lizards” emphasized: “Nice breakout, but on low volume. Confirmation is needed.”
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89,000 USD as the Next Hurdle
Matthew Hyland, a well-known market observer, sees the next key step at 89,000 USD. Only if this mark is broken and a so-called “higher high” is formed can a trend reversal be confirmed.
On-chain data from CryptoQuant also suggests that this is more likely a normal correction than the start of a new bear market. The “Realized Profit/Loss Margin” metric shows that many investors are currently realizing moderate profits – typical behaviour in stable market phases.
Our Assessment
The current rise of Bitcoin above 87,000 USD is a signal you shouldn’t ignore – but it’s also not a free pass for blind optimism. Political developments in the US are having a direct impact on the financial markets. Bitcoin and gold are currently benefiting as alternatives to the US dollar.
However, before betting on a sustainable bull market, you should closely monitor trading volumes and price movement in the coming days. Only a strong breakout above 89,000 USD could lay the foundation for a longer-term upward trend.
Sources
- Bloomberg
- CryptoQuant
- Amberdata
- VanEck Research
- Bitwise
- Galaxy Research
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | $93,739.00 |
| 24h % | 1.42 % |
| 7d % | 10.87 % |
| 30d % | 6.62 % |
| 60d % | -2.16 % |
| 1y % | 46.74 % |
| Market Cap | $1,861,523,611,840.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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