- Bitcoin rallied to $93,600 (+12.2% weekly) despite mixed US-China trade signals.
- US Spot Bitcoin ETFs saw nearly $1.3 billion net inflows this week, signaling strong institutional demand.
- Analysts suggest Bitcoin is decoupling from risk assets, acting more like “digital gold.”
The cryptocurrency market showed renewed vigor recently, with Bitcoin pushing towards $94,000, although the rally encountered some friction Wednesday following cautious remarks from US Treasury Secretary Scott Bessent regarding the timeline for a comprehensive US-China trade deal.
Despite this, strong institutional inflows and a potential divergence from traditional risk assets are fueling speculation about Bitcoin’s next major move.
Bitcoin (BTC) climbed 2.6% over the preceding 24 hours and logged a 12.2% gain over the past seven days, reaching levels near $93,600 – territory not seen since early March.
While Bitcoin led the charge, broader crypto market strength was evident.
The CoinDesk 20 index, tracking top digital assets (excluding stablecoins, memecoins, and exchange tokens), rose 4.2% over 24 hours.
Altcoins like Sui (SUI) posted impressive 24% gains, with Cardano (ADA) and Chainlink (LINK) also advancing around 7%.
Crypto-related equities, after a strong start, saw gains moderate throughout the day.
Mining firms Bitdeer (BTDR) and Core Scientific (CORZ) pared back double-digit advances to close up roughly 4%, while Coinbase (COIN) and MicroStrategy (MSTR) finished with gains of 2.1% and 1.4%, respectively.
The backdrop for this rally included seemingly conflicting signals on the trade front. Earlier in the week, President Donald Trump suggested tariffs on China would “come down substantially” post-deal.
However, Secretary Bessent tempered expectations on Wednesday, stating no unilateral offer to cut tariffs had been made and predicting a full resolution would likely take “two to three years to achieve.”
Decoupling debate: Bitcoin mirrors gold amid uncertainty?
This persistent trade uncertainty, paradoxically, might be contributing to Bitcoin’s strength relative to traditional markets. Some analysts believe the market may be moving past the initial shock of tariff threats.
“Markets priced in the initial tough stances and tariff threats, which kept a lid on risk appetite over the past two months,” Paul Howard, director at crypto trading firm Wincent, told CoinDesk.
“History suggests that once the opening volleys pass, more constructive developments and easing volatility typically follow,” he added, suggesting this environment could ultimately support risk assets like crypto.
The narrative of Bitcoin acting as “digital gold” – a hedge against macroeconomic uncertainty and potential currency debasement – appears to be gaining traction.
Institutional conviction: ETF flows surge past $1 billion this week
Underscoring the renewed interest, particularly from larger players, has been the significant turnaround in flows for US-listed spot Bitcoin ETFs.
According to SoSoValue data, these funds have attracted nearly $1.3 billion in net inflows so far this week alone, marking their strongest daily inflow on Tuesday since mid-January.
“This [crypto] rally isn’t retail-driven hype—it’s institutional capital positioning ahead of what many see as a new monetary and political regime,” asserted Matt Mena, crypto research strategist at digital asset manager 21Shares.
“More investors are turning to it not just as a speculative asset, but as a flight to safety amid rising uncertainty across traditional markets.”
Gold pauses, bitcoin poised? Historical patterns eyed
Adding another layer to the bullish case is the recent performance of traditional gold.
After a remarkable run that saw it surge 35% over four months to breach $3,500 per ounce, gold prices pulled back Wednesday, down roughly 2.5% to around $3,290.
Some analysts interpret this stalling action in gold, following its massive rally, as potentially bullish for Bitcoin.
Charles Edwards, founder of Capriole Investments, highlighted this dynamic.
Posting a chart on X (formerly Twitter), he noted that historically, Bitcoin’s major upward moves have often followed significant gold rallies, albeit with a lag of a few months.
“Bitcoin is showing significant strength,” Edwards stated.
“We have decoupled from risk assets and the market is now starting to front-run the fact that bitcoin is digital gold. If risk assets were to decay further from here, BTC is the ultimate QE [quantitative easing] hedge.”
Eyes on $95K: resistance looms despite bullish momentum
Despite the strong price action and positive indicators, technical hurdles remain.
Matt Mena from 21Shares cautioned that Bitcoin faces near-term resistance around the critical $95,000 level.
He suggested a potential pullback could occur before a decisive breakout above this zone. Successfully clearing $95,000 is seen by many traders as key to unlocking further significant upside potential.
The combination of renewed institutional demand, the compelling “digital gold” narrative gaining traction as traditional gold pauses, and supportive historical patterns suggests Bitcoin may be gearing up for its next major leg higher, with the $95,000 level serving as the immediate gateway.
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