Bitcoin Price Rises Above $85,000 Amid Institutional Accumulation and Tariff Talks
Bitcoin’s price surged to $85,000 supported by institutional purchases from Tether and Metaplanet. Market sentiments rose ahead of President Trump’s upcoming tariff announcement, suggesting less severe tariffs than expected. Liquidation data highlighted heavy losses for short sellers, while Bitcoin’s market capitalization increased to $1.69 trillion.
As of April 1, 2025, Bitcoin has surged to $85,240.06, with a notable increase of 2.01% over the preceding day. Despite a slight downturn of 2.86% over the week, the trading volume for Bitcoin reached $27.45 billion, reflecting growing institutional interest. Reports of anticipated tariff announcements by President Donald Trump have contributed to a shift in market sentiment, pushing Bitcoin above the crucial $85,000 threshold.
Enhancing this bullish trend, Tether has made significant investments in Bitcoin, acquiring 8,888 BTC in Q1 2025, thereby raising its total holdings to approximately $7.8 billion. Similarly, Japanese firm Metaplanet announced the purchase of an additional 696 BTC, bringing its total to 4,046 BTC. These acquisitions highlight the increasing adoption of Bitcoin as a treasury asset by major institutions, effectively reducing supply and supporting price stability.
Market reactions to President Trump’s imminent “Liberation Day” tariff announcement have been cautious yet optimistic. While speculations suggested a potential reduction in blanket tariffs, this has fostered greater investor confidence, bolstering prices across the crypto market, including substantial gains for Ethereum (ETH) and Dogecoin (DOGE). Bitcoin’s market capitalization now stands at $1.69 trillion, indicating a 2.22% increase, yet its dominance has experienced a slight drop to 62.37%.
Moreover, recent liquidation data reveals that short sellers faced losses totaling $25.19 million, in stark contrast to the mere $443,490 from long liquidations. Analysts suggest that Bitcoin may need to test resistance at these mid-$80K levels, yet the current institutional backing could propel prices toward the low $90K range in the upcoming weeks, indicating a positive outlook for the cryptocurrency.
In summary, Bitcoin’s recent price increase to over $85,000 is attributed to significant institutional purchases and a shift in market sentiment ahead of tariff announcements by the Trump administration. Major players like Tether and Metaplanet have further demonstrated confidence in Bitcoin as a treasury asset. Meanwhile, market reactions to potential tariff structures are boosting optimism across the crypto landscape, setting the stage for further upward movement in Bitcoin’s price in the coming weeks.
Original Source: coincentral.com
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