Written by Linh Tran, Market Analyst at XS.com
Bitcoin (BTC) saw a strong breakout in yesterday’s session, surging by 6.77% and reclaiming the $92,000 level, fueled by a notable improvement in global market sentiment. The main drivers behind this rally were the dovish comments from U.S. President Donald Trump regarding trade tariffs, as well as his statement that he has no intention of dismissing Federal Reserve Chair Jerome Powell.
After weeks of escalating trade tensions and tit-for-tat tariffs between the U.S. and China, Trump’s latest remarks helped ease investor concerns by signaling a softer stance on global trade. Specifically, he stated that the U.S. would temporarily refrain from expanding tariffs on countries that “do not retaliate” and expressed optimism that trade negotiations with China are “progressing positively,” although several issues remain unresolved.
Additionally, the White House noted that the U.S. is actively negotiating with more than 30 countries, with the aim of securing bilateral or multilateral agreements that could help reshape global trade dynamics in a way that benefits the U.S. While these discussions have yet to yield concrete outcomes, the overall message of “de-escalation” has reassured markets and triggered a strong rebound in risk assets such as equities and cryptocurrencies.
For Bitcoin in particular — an asset highly sensitive to shifts in investor sentiment — signs of easing trade tensions have helped rebuild investor confidence, especially after a prolonged period of correction due to weakening institutional inflows and rising macroeconomic risks. Improved policy expectations have also created a more supportive environment for BTC’s sharp rebound during the latest session.
Furthermore, President Trump’s assurance that he has no intention of removing Fed Chair Powell helped ease concerns about potential political interference in monetary policy. Nevertheless, Powell himself maintained a cautious outlook, stating that it is still too early to begin cutting interest rates, as uncertainties surrounding recent tariff measures have not yet been fully reflected in the economy.
Market sentiment was further boosted by a strong performance in U.S. equities. Major indices such as the S&P 500 and Nasdaq both gained more than 2%, with broad-based advances across nearly all sectors. A strong start to the earnings season — with notable outperformance from companies like Tesla and 3M — helped fuel market enthusiasm. This not only reflects renewed confidence in the U.S. economic outlook but also signals a rotation back into higher-volatility assets, with Bitcoin being one of the most prominent beneficiaries.
Notably, institutional capital appears to be returning to the crypto market. U.S.-listed spot Bitcoin ETFs recorded net inflows of $381.4 million — a significant figure following several sessions of outflows. This is a positive signal that long-term confidence in Bitcoin is gradually being restored.
However, it is worth noting that the International Monetary Fund (IMF) recently cut its global growth forecast for 2025 to 2.8%, down from 3.3% in 2024. The downgrade was primarily due to the impact of U.S. import tariffs and retaliatory measures from major economies. This backdrop continues to present a layer of risk for the ongoing recovery in risk assets, including Bitcoin.
In the near term, market attention will focus on several key economic indicators scheduled for release today, including the April Manufacturing PMI, April Services PMI, and March New Home Sales. These early data points will offer insight into the current health of the U.S. economy and will play a crucial role in shaping expectations for the Fed’s monetary policy path.
If the data show that the economy is cooling in a controlled manner — i.e., slowing growth accompanied by easing inflation — it will strengthen expectations that the Fed could begin cutting interest rates as early as September, thereby providing continued tailwinds for BTC. On the other hand, if the data come in hotter than expected and suggest the economy remains overheated, the risk of the Fed maintaining higher rates for longer could return, placing renewed pressure on risk assets — including Bitcoin.
