Bitcoin Breaks $85,000 Amid Market Stability and Investor Optimism

With no fresh turbulence in U.S. trade or economic policy, Bitcoin has gained 0.79% over the past 24 hours, breaking the psychological $85,000 level.

Forced liquidations totaled a relatively modest $196 million, with the majority ($106.8 million) coming from long positions. This suggests that futures traders are approaching the market with caution. 

Notably, for the first time in a while, Ethereum (ETH) experienced higher daily liquidations than Bitcoin—$49.89 million compared to $45.49 million.

• According to CoinMarketCap, the Fear and Greed Index rose to 31. While that still reflects fear, it’s now just 9 points away from neutral territory. 
• The Altcoin Season Index sits at 16—far too low to support hopes for an altcoin rally.
• Bitcoin dominance climbed above 63%, while Ethereum continues to hold 7.3% of the market. This trend shows Bitcoin is gaining ground by absorbing market share from altcoins. 

$85,000 Breakout Sets the Stage for the Next Target

The move above the $85,000 resistance level sends a strong signal, especially since buyers struggled to hold that level just a day earlier. 

If BTC closes the weekly candle above $85,000, a quick push toward $90,000 looks likely, along with a full confirmation of the daily bullish divergence (assuming no unexpected events disrupt the market, such as a major exchange hack or new trade tariffs).

ETF Investors Are Coming Back—Almost

For the first time in eight days, U.S. spot Bitcoin ETFs recorded a net inflow, although it was minimal at just $1.5 million. This near-zero movement continued for a second trading day in a row, after investors withdrew a net $1 million on April 11, 2025. 

The most active funds were:

•  iShares Bitcoin Trust ETF (IBIT) by BlackRock, which recorded a $36.7 million inflow
•  Fidelity Wise Origin Bitcoin Fund (FBTC), which brought in $35.2 million 

The rest of the funds saw no net capital movement.

Bonds Back in the Spotlight

In recent years, the crypto community has focused mainly on interest rates, but U.S. Treasury bonds also play a major role in shaping Bitcoin’s performance. Analysts now point to falling government bond yields as a key factor driving BTC’s rise, along with gains in other risk assets like stocks.

However, this trend comes with a trade-off. Yields are falling as investors anticipate a lower key interest rate and a rise in consumer demand, both fueled by growing economic uncertainty, especially the escalating tariff war between the U.S. and China, which continues to introduce retaliatory measures. 

All of this adds to market volatility and reduces predictability. In other words, earning solid returns now means taking on more risk.

Read more: Will There Be a Recession in 2025? Markets, Data, and Trump’s Tariffs

According to Bitwise CIO Matt Hougan, Bitcoin draws its strength from two seemingly opposite traits: 

1. It acts as a high-risk, volatile asset that isn’t meant to preserve value.
2. At the same time, many investors view it as digital gold, a hedge against inflation and traditional economic risks. 

Because of this, Bitcoin fits into investment strategies in almost any market scenario.

Today, as more corporations and institutions are buying bitcoin, and more governments are holding it as a strategic reserve, the “hedge asset” narrative is gaining traction. There’s no guarantee that this relationship will hold, or that the remarkable strength we’ve seen out of bitcoin lately will project into the future. But so far, it’s looking pretty good,

Matt Hougan said.

So, even with some signs of market stabilization, Bitcoin still faces volatility while continuing to show positive momentum due to its dual nature. 

In the short term, it's important to watch how the market responds to the new $85,000 support level. If buyers hold that level, Bitcoin could make a move toward $90,000.

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