TLDR
- Bitcoin reached an April high of $87,300 as markets prepare for Trump’s “Liberation Day” tariffs
- Bitcoin is up 2% while stock markets show weakness, showing possible decoupling
- Bitcoin is approaching a potential technical breakout above the 21-week EMA at $87,650
- Growing mainstream adoption includes Fidelity’s zero-fee retirement plans with Bitcoin options
- Trump family is entering Bitcoin mining through American Data Centers venture
Bitcoin (BTC) has climbed above $87,000 on April 2, 2025, reaching new monthly highs as markets await President Donald Trump’s announcement of sweeping trade tariffs.
The cryptocurrency gained approximately 2% in the past 24 hours, hitting an intraday high of $87,300 while traditional markets showed weakness.
Bitcoin’s price action is happening at a key technical level, with several important trend lines converging. These include various simple and exponential moving averages that could determine the next directional move.
Trading volumes remain mixed as investors watch for the impacts of Trump’s upcoming “Liberation Day” tariff announcement, scheduled for 4 pm Eastern Time from the White House Rose Garden.
BTC Price
Technical Analysis Shows Potential Breakout
Popular analyst Rekt Capital has highlighted that Bitcoin is approaching a key technical breakout.
The 21-week Exponential Moving Average (EMA) currently sits at $87,650, marking an important resistance level.
“Bitcoin is one Daily Candle Close above & retest of the Downtrend away from breaking out into a new technical uptrend,” Rekt Capital noted on social media.
If Bitcoin can close above this level on the weekly timeframe, it could confirm a shift in market structure and potentially signal the end of the recent consolidation phase.
Bitcoin dominance has also been increasing over the past month, suggesting capital is flowing from altcoins back into Bitcoin.
Some analysts believe this dominance metric could reach 71% soon, which would mark a new high for 2025.
Growing Mainstream Adoption
Several mainstream adoption catalysts might be contributing to Bitcoin’s price strength.
Investment firm Fidelity has reportedly introduced a zero-fee retirement plan that makes it easier for Americans to invest in Bitcoin as part of their 401(k) portfolios.
This move could expand Bitcoin’s reach to traditional investors looking for diversification from stocks and bonds.
Crypto asset manager Grayscale has launched two new Bitcoin ETFs focused on systematic covered call writing, offering more options for institutional exposure.
Trump Family Enters Bitcoin Mining
In an eye-catching development, President Trump’s sons Don Jr. and Eric are venturing into Bitcoin mining.
According to reports from The Wall Street Journal, their company American Data Centers will combine with American Bitcoin, a BTC mining operation owned by Hut 8.
The joint venture aims to become the world’s largest crypto mining operation while also building a sizable Bitcoin reserve.
This move represents high-profile entry into the Bitcoin mining sector and could be seen as a vote of confidence in the cryptocurrency’s future.
Tariff Impacts Remain Uncertain
Despite today’s gains, analysts remain cautious about tariffs’ potential impact on Bitcoin.
CoinShares head of research James Butterfill warned in February that tariffs would likely have negative short-term effects on the BTC price.
“Unlike gold, bitcoin has a growth component, meaning it reacts to economic trends and liquidity cycles,” Butterfill explained.
Previous tariff announcements in Q1 almost always triggered downward price reactions for Bitcoin.
Some market observers, including trading firm QCP Capital, remain cautious. “Without a material shift in macro or a compelling catalyst, we don’t expect a meaningful reversal,” they noted.
In a worst-case scenario, Swissblock asset management firm suggests Bitcoin could retest the $76,000 level, which would represent an 11% drop from current prices.
However, Pantera Capital believes Bitcoin’s price is not fully reflecting recent positive developments. In a letter to investors, the crypto hedge fund suggested Bitcoin should be trading closer to $120,000 based on catalysts like a pro-bitcoin president and favorable legal outcomes for companies like Coinbase.
Bitcoin currently trades approximately 20% below its all-time high of just over $109,000, which was reached earlier this year.
