Bitcoin exceeds USD 88,000 while improving feeling

The price of Bitcoin (BTC) arrived on Monday at $ 88,000 (USD) for the first time in three weeks. Precisely, the currency did not reach this price since the beginning of April.

During the last two weeks, The feeling of the cryptocurrency market He has been improvingwhich contributed to the price increase. Although, even so, it continues within a state of fear.

Since Bitcoin stepped on two weeks the USD 76,000, their minimum in four months, the index Fear and Greed From the Coinmarketcap explorer he was climbing. Although, even so, this continues to show fear in the market. In this period, it went from 15 to 34 points.

This rate scores on a scale of 0 to 100 the feeling of the cryptocurrency market, according to price data, volatility, derivatives, stablecoins and other aspects. The levels smaller than 40 indicate fear and the points lower than 20 at extreme levels. Instead, those over 60 greed and the highest of 80 in extreme intensity.

According to the metric, if there is extreme greed, it could be a signal to consider the sale of assets, while extreme fear could mean a purchase opportunity. That is why, although it is not an infallible technique, some investors use the survey of feeling as part of a opposite investment strategy.

In correlation with this theory, Bitcoin’s price experienced a rebound after reaching the feeling of extreme fearas the following graph exhibits. This behavior is hopeful that a bearish cycle has not yet initiated, despite the setback that it experiences from its historical maximum.

Bitcoin is quoting 20% ​​less than its historical record of USD 109,000 reached three months ago, at the end of January. This can be seen in the following price chart.

Meanwhile, the feeling of the American stock market also improved. Although, this is still at extreme fear levels, according to the index of Fear and Greed of CNN.

Trump advances in trade agreements negotiations

The improvement of the feeling of the markets occurs while the expectations of ending the commercial war war on imports. The US president Donald Trump has not only paused the rates he had put to all countries, except for China, but also advances in the negotiations.

After the visit of Giorga Meloni, the Prime Minister of Italy, to the White House on Thursday, Trump said that “there will be a commercial agreement” with Europe. While there are still no extensions of the negotiations, he indicated that “it will be a fair treatment.”

On the other hand, Meloni, who was the first European leader to visit the White House since Trump imposed the tariffs, said he was “safe” that they could reach an agreement. Strengthening his political alignment, he also added that his goal as a whole is “to make the West be great again.”

Trump also communicated that he is confident in making “a very good agreement” with China, noting that the representatives of the Asian country have already contacted “several times.” Based on this, he stressed that hopes to reach agreements with all countries in the next three or four weeks.

Tariffs generate fears of promoting higher prices in products, teaching greater inflation and a recession in the United States as in affected countries. That is why the expectations of more enjoyable agreements for the economy help the improvement of markets.

It is still early for BTC to react the upward cycle, according to analyst

“It is too early to say that we are still out of danger, since negotiations with key commercial partners are still ongoing,” said Peter Chung, head of Research Research. He explained that persistent nervousness is evident, with the still high treasure bonds and the value of the weak dollar.

Likewise, for the specialist, it is remarkable that Bitcoin “resisted well” in April, surpassing the main stock market rates, such as the S&P500, Nasdaq and the American technological giants of the “magnificent 7”. But, to resume the bullish cycle, the Federal Reserve (FED), American Central Bank, You must keep interest ratesholds.

“Bitcoin’s rupture above the USD 87,000 is being driven by an increase in global liquidity, motivated by the expansion of the M2 money supply and the renewed institutional interest highlighted by the signs of further increasing their holdings,” said Dominick John, an analyst of Kronos Research.

Companies investing in Bitcoin, such as Strategy and Metaplanet, have been buying more BTC while staying under its record price. At the same time, the offer of M2, a measure of money in circulation, continues to increase, which contributes to more capital in the markets.

With this panorama, the road is paved for Bitcoin, although it will depend on how the development of the macroeconomic environment follows. “Clarity about Trump’s commercial tariffs is essential to stabilize the broader markets and reinforce investors’ confidence,” John culminated.