Bitcoin rocketed to $87,400 on April 21, sending shockwaves through financial markets as the cryptocurrency broke free from its traditional correlation with stocks. The surge added a whopping $3,000 in less than 24 hours – a 4% jump that had traders glued to their screens while US stock futures slumped in the opposite direction.
Bitcoin’s explosive surge to $87,400 defies market expectations, breaking away from stocks while adding $3,000 in a single day’s trading.
The catalyst? Donald Trump’s bombshell announcement about replacing Fed Chair Powell sent the dollar tumbling to 98.182. Talk about perfect timing. As institutional faith in fiat currency wobbled, Bitcoin stepped up to fill the void, alongside gold’s impressive climb to $3,385 per ounce. Large mining farms require massive cooling systems to maintain optimal performance during such high-stakes market movements.
This isn’t your typical crypto rally. The $87,000 level represents a significant battleground, with over 5.58 million addresses holding 3.79 million BTC purchased at an average of $97,059. These holders are fundamentally “sitting on a hot potato,” as analyst Maartunn so eloquently put it. One wrong move could trigger a cascade of profit-taking or panic selling. The total investment in this range represents a staggering 367 billion dollars at risk.
The most intriguing part? Bitcoin’s finally breaking its old habits. Instead of dancing to the Nasdaq’s tune, it’s now moving in sync with gold and global liquidity trends. Who would’ve thought? The cryptocurrency that once lived and died by tech stock movements is now playing the role of safe-haven asset. Trader Scott Melker suggests that a break above $88,804 could invalidate the bearish trend.
Technical analysts are having a field day with this one. A breakout from a “Falling Wedge” pattern confirmed by heavy trading volume has the chart-watchers buzzing.
But it’s not all sunshine and rainbows. Weak on-chain flows and credit market stress could still throw a wrench in the works.
The writing’s on the wall: Bitcoin’s surge isn’t just about numbers on a screen. It’s about shifting market dynamics, eroding trust in traditional financial institutions, and the growing appeal of decentralized alternatives.
As the Fed’s independence comes under scrutiny and global liquidity expands, Bitcoin’s making its case as more than just another speculative asset.
