In brief
- Bitcoin topped $93,500 Tuesday amid easing U.S.–China trade tensions and a softer stance from President Trump on Fed leadership.
- Gold spiked to $3,500 before pulling back to $3,300, a move analysts say may signal a shift in macro sentiment.
- Rising global M2 money supply could fuel further upside in both gold and Bitcoin, according to Merkle Tree Capital.
Bitcoin traded above $93,500 Tuesday evening in New York, notching a fresh monthly high as easing trade war fears and shifting U.S. monetary signals stoked investor demand for risk assets.
The rally came as market participants reassessed the trajectory of the U.S.–China trade dispute following conciliatory remarks from U.S. officials, as well as reports that President Donald Trump had softened his stance on firing Federal Reserve Chair Jerome Powell.
The combination helped lift sentiment across equities and commodities, with Bitcoin and gold both posting sharp moves.
Bitcoin's 4.7% intraday gain aligned with a broader uptick in macro-driven trades. Gold initially jumped to $3,500 before retreating to $3,300, a volatile swing that some analysts interpreted as a signal of capital rotation into digital assets.
The price of Bitcoin jumped as high as $91,684 on Tuesday as investors weighed whether Washington’s tit-for-tat with Beijing on tariffs could come to a sooner-than-expected end.
Bitcoin was recently up 4.5% over the past 24 hours, losing some ground from earlier in the afternoon but still on track to register its largest day gain since April 9, when the asset surged 8.3%, according to Bitcoin CounterFlow. That was the day that U.S. President Donald Trump lowered “reciprocal” tariffs on nearly al...
"Both assets follow global M2 money growth, but with a twist," Ryan McMillin, chief investment officer at Merkle Tree Capital, said in a note to investors on Tuesday. "Gold reacts more immediately, while Bitcoin tends to lag by about 90 days.
“Historically, strong gold rallies often signal upcoming Bitcoin rallies—and can also trigger gold reversals just as Bitcoin starts to run."
McMillin added that gold's sharp reversal overnight could reflect a shift among store-of-value investors toward Bitcoin, which many see as undervalued relative to gold amid rising inflation expectations and monetary expansion.
"As a global trade war continues to simmer, remember the primary tool governments have to compete is their money printer," McMillin said. "M2 has the potential to skyrocket, and take gold and BTC with it."
Bitcoin is back above $90,000 and reaching highs not seen since the start of March, but it's not the only major coin in the green on Tuesday. As of this writing, Dogecoin, Solana, and Ethereum are all showing larger percentage gains on the day.
Dogecoin, the original meme coin, has jumped by nearly 9% over the last 24 hours to a current price of $0.172. And while that's still just shy of the coin's highest price so far in April, it's no doubt a welcome respite for DOGE holders who have watched t...
The Federal Reserve’s next interest rate decision and ongoing fiscal negotiations between Washington and Beijing are likely to remain key catalysts for Bitcoin in the weeks ahead.
Despite the surge, some traders remain cautious, pointing to historically high funding rates and declining on-chain activity as potential headwinds.
Still, the macro narrative appears to be shifting in Bitcoin’s favor, for now.
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