Bitcoin Soars 4.6% on Inflation Optimism

The leading cryptocurrency smashes key resistance levels following comments from the Fed and the tariff truce, with open interest in futures reaching January highs. Heading for $95,000?

The price of Bitcoin (BTC) experienced an impressive rally this Tuesday, soaring 4.62% to surpass the $91,500 barrier at the time of this report. The world's leading cryptocurrency managed to break through a crucial resistance at $88,000, confirming the renewed bullish sentiment that has been building since last weekend. This momentum was strengthened by comments from Richmond Federal Reserve President Thomas Barkin, who suggested a possible easing of inflation expectations, marking a notable shift in his tone.

From a technical perspective, the Bitcoin price consolidated renewed bullish sentiment over the last two days. / TradingView

Trump Truce and Inflation Optimism Boost Bitcoin

The price of Bitcoin is finding a tailwind in the current pause in the tariff war driven by President Donald Trump. Last week, Trump announced the suspension of tariffs on at least 75 countries for the next 90 days, following a significant drop in the US bond market. This respite in trade tensions, coupled with signs of moderating inflation expectations, fuels speculation that the Federal Reserve could maintain its policy of monetary easing, with possible rate cuts on the horizon.

The market anticipates rate cuts despite immediate uncertainty

Although bets on the interest rate remaining unchanged at 4.50% for the next meeting on May 7 have risen to 90.4%, the market is already pricing in a possible 25 basis point interest rate cut by June 18, with a probability of 59.9%. These expectations of looser monetary policy from the Fed are contributing to optimism in risk markets, including Bitcoin.

Bitcoin Futures Open Interest Explodes

The Bitcoin futures market experienced an impressive increase in open interest, skyrocketing 17.16% in the last 24 hours. Bitcoin's OI reached $68.82 billion, returning to the highs recorded on January 21 and overcoming the decline observed over the last three months. This sharp increase in open interest indicates a significant inflow of capital and a considerable increase in bets for a further increase in the Bitcoin price.

Technical Analysis Confirms Bullish Breakout with Solid Volume

From a technical perspective, the Bitcoin price consolidated renewed bullish sentiment over the last two days. The breakout of the fixed resistance at $88,000, accompanied by trading volume that exceeded the 25-day average on the Binance exchange, confirms the strength of this bullish movement. This momentum points directly to the next resistance zone at $95,000.

Furthermore, this upward movement prevented a bearish crossover between the 50-period and 200-period exponential moving averages, suggesting that Bitcoin's downtrend may be coming to an end, paving the way for a push to new highs since last March. With this recent surge, Bitcoin has accumulated gains of 8.32% in the last week and 9.29% in the last month, reducing the 2025 losses to just -2.08%.

Bitcoin has staged a strong bullish breakout, driven by a more dovish tone from the Fed and the tariff truce. The breakout of key resistances and the massive increase in open interest in futures signals strong bullish conviction in the market. If the momentum continues, the target is the $95,000 zone. However, investors should remain cautious given the inherent volatility of the crypto market.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency trading is highly volatile and carries significant risks, including the total loss of your invested capital. Consult a financial advisor before making any investment decisions.