Bitcoin Surges Above $87,000 Amidst Market Uncertainty and Geopolitical Tensions

On April 21, the price of the leading cryptocurrency crossed $87,000. This level was previously tested by Bitcoin at the beginning of the month.

Over the last 24 hours, Bitcoin has seen an increase of nearly 3% and is currently trading around $87,500. Most altcoins in the top 10 by market capitalization supported the upward movement of Bitcoin, with the only exceptions being Solana (+0.2%) and TRON (+0.6%).

During this timeframe, the total market capitalization of cryptocurrencies rose by just 0.5%, reaching $2.85 trillion, with Bitcoin’s dominance at 61%.

The surge in Bitcoin’s price coincided with a new peak for gold, which reached $3,389 per troy ounce. Meanwhile, futures for major U.S. stock indices continued to decline.

This downturn occurs amidst escalating trade tensions between the U.S. and China, as highlighted by The Kobeissi Letter. The Chinese Ministry of Commerce issued warnings regarding retaliatory measures against nations collaborating with the U.S. against Beijing’s interests.

«The Chinese government firmly opposes any deal that compromises its interests. If such a scenario occurs, China will not accept it and will respond resolutely with countermeasures,» stated the ministry.

The publication suggests that the rise in gold and Bitcoin is indicative of a weakening dollar and growing uncertainty.

«The breakout of Bitcoin above $87,000 is linked to increased global liquidity driven by monetary expansion and renewed institutional interest, highlighted by [Strategy]’s signals for further asset accumulation and shrinking available supply,» commented Dominic John, an analyst at Kronos Research, for The Block.

According to data from MacroMicro, the combined M2 aggregate of the four largest central banks (the U.S., Japan, the EU, and China) has been steadily increasing since December 2024, reaching $90.2 trillion in February.

On April 13, Michael Saylor’s company, Strategy, reported the acquisition of 3,459 BTC at an average price of $82,618, bringing its total Bitcoin reserves to 531,644 BTC.

However, Strategy recorded an unrealized loss of $5.91 billion for the first quarter due to declining Bitcoin prices.

Peter Chang, head of research at Presto Research, believes it is too early to proclaim a return to a growth trajectory for Bitcoin, as macroeconomic uncertainties persist amid ongoing negotiations between the U.S. and its primary trading partners.

Nonetheless, he noted the cryptocurrency’s resilience, as Bitcoin has shown more stability in April compared to major U.S. stock indices.

According to Glassnode, the number of wallets holding more than 1,000 BTC has surged in recent months—rising from 2,037 at the end of February to a four-month high of 2,107 as of April 15. The number of «whale» addresses has returned to levels seen in November and December 2024 during the market’s rise following Donald Trump’s election as U.S. President.

Additionally, the number of wallets holding 100 BTC or more has increased since the beginning of the year, reaching 18,026, according to Glassnode. Conversely, the number of cryptocurrency owners with balances under 10 BTC has declined in recent months.

«Whales are accumulating massive amounts of Bitcoin. They know what’s coming next,» said trader Mister Crypto.

Analysts at Santiment pointed out that wallets containing between 10 BTC and 10,000 BTC currently hold 67.77% of the available supply of Bitcoin. During April’s volatility alone, these addresses added 53,600 BTC.

It’s worth noting that in mid-April, call options for Bitcoin priced at $100,000 became the most popular position on the Deribit platform, boasting a total open interest of nearly $1.2 billion.