Bitcoin Price Surge: ETF Inflows, Coinbase Premium, and Tariff News
Bitcoin Price Rallies Amidst Positive Market Signals
Bitcoin (BTC) experienced a significant price increase, reaching a daily high of $88,804. Analysts see the $90,000 to $92,000 range as a crucial short-term target. This surge followed positive developments on several fronts.
Impact of Tariff News
President Trump's suggestion of a softer-than-expected tariff announcement, excluding cars and microchips, boosted market sentiment. Ben Yorke, VP of Ecosystem at WOO, noted that this more targeted approach indicates a caution against potential economic backlash.
Increased Bitcoin futures open interest suggests traders leveraged long positions, further reflecting positive market response to the tariff news.
Resurgent Spot Demand
The return of the Coinbase Premium—the price difference between Coinbase Pro and Binance—and seven consecutive days of positive spot BTC ETF inflows point to renewed spot demand. This suggests an improvement in overall market sentiment after a period of selling and the use of perpetual futures to manipulate price within a defined range. Data from SoSoValue shows $84.17 million in US spot Bitcoin ETF net flows.
Potential for a $100K Rally?
While positive indicators like the Coinbase premium and ETF inflows suggest improving sentiment, the question remains whether this momentum will propel Bitcoin above $100,000. Lingling Jiang, a partner at DWF Labs, highlights the alignment of structural and narrative factors driving the upward trend. She points to ETF inflows, a growing stablecoin market, and positive patterns in altcoins as signals of increased confidence and potential institutional participation. Despite strengthening market liquidity, volatility remains low, and on-chain metrics indicate long-term accumulation.
Technical Analysis
Technically, Bitcoin remains below its trading range from November 2024 to February 2025. Although trading above the 20-day and 200-day moving averages, it's capped by descending trendline resistance, aligning with the 50-day moving average ($89,500 - $90,000). However, independent market analyst Scott Melker notes a clear bullish trend in the 4-hour relative strength index (RSI) indicator, with higher lows and higher highs, preceded by an oversold RSI with bullish divergence.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Conduct thorough research before making any investment decisions.
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