Bitcoin Breaks $87K, But Don’t Get Too Excited Yet 😏

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  • BTC sneakily reclaims $87k while the U.S. dollar throws a tantrum thanks to Trump’s Fed drama
  • But don’t pop the champagne—Bitcoin’s breakout is about as convincing as a toddler’s excuse, driven by weak volume

So, Bitcoin [BTC] decided to play hopscotch over the $87k mark during an Easter rally that experts think is just the U.S. dollar throwing a diva fit. Mathew Sigel from VanEck, who apparently gets paid to stare at charts, mentioned this in a note. Riveting stuff.

Trump’s tantrum weakens the dollar, Bitcoin gets a free ride

Alex Thorn from Galaxy and Andre Dragosch at Bitwise jumped on the bandwagon too. Dragosch added that the US Dollar Index (DXY) just took a nosedive to its lowest since 2022. It’s like a soap opera for currency nerds.

“Looks like Bitcoin is pumping on continued Dollar weakness. DXY just touched the lowest level since March 2022.”

Bitcoin price chart

Here’s the deal: Bitcoin’s price moves like it’s in an opposite dance with the DXY. So when Trump threatens Fed Chair Jerome Powell like a reality show villain, the dollar goes from $100 to $97, giving crypto a little oxygen.

Amberdata’s Greg Madini added that Trump’s antics are basically a “threat to Fed independence” (which sounds like a plot twist in a political thriller). He also said replacing Powell would be inflationary and would send both gold and Bitcoin moonward.

“Next week, we have the Fed Beige Book release and multiple Fed governors yakking away. Any threats against the Fed’s independence could be just what gold and BTC need to keep soaring.”

And guess what? Gold just hit another all-time high on Monday, finally getting cozy with Bitcoin again after weeks of ignoring it like a bad Tinder date.

Investors are fleeing to gold and BTC like they’re the last lifeboats on the Titanic amid tariff confusion. Everyone and their dog are talking about Bitcoin’s brave leap over $87k.

But wait, too much excitement? Yes. Because this pump is driven by low spot volume, which basically means it’s as reliable as a dodgy mobile signal in a cave. StockMoney Lizards (not making that up) chimed in:

“Nice breakout, but it’s on low volume. Will definitely need confirmation. In any case, you shouldn’t be too euphoric yet.”

Bitcoin low volume chart

Meanwhile, Matthew Hyland isn’t ready to hand out hugs just yet. He says Bitcoin bulls need to smash through $89k, set a higher-high, and basically give an all-clear signal that the downtrend is done and dusted.

“Only goal for #BTC bulls now is to break $89k, create & confirm a higher-high, and confirm an end to the downtrend.”

CryptoQuant also weighed in, saying this is just a garden-variety correction, not a full-blown bear market. They’re using some fancy On-chain Trader Realized Profit/Loss Margin metric—which sounds like calculator wizardry—to say chill out.

On-chain Trader Realized Profit/Loss Margin metric chart

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2025-04-21 17:15