Bitcoin (BTC) Breaks $90,000 Barrier, Ethereum (ETH) Mirrors Gains

Bitcoin (BTC) has decisively broken through the $90,000 barrier, currently trading around $91,600, marking a significant 4.5% surge in the past 24 hours.

Bitcoin (BTC) price surged above the key $90,000 level on Thursday, driven by a combination of positive macroeconomic signals and anticipation surrounding a US strategic cryptocurrency reserve.

Bitcoin was trading at $91,600, displaying a 4.5% gain over the past 24 hours. Ethereum (ETH) also joined the rally, advancing over 5% to reach $2,286, according to Coinmarketcap data.

Positive developments in the US-led trade war appeared to boost investor sentiment. President Trump's administration announced a one-month exemption for 25% tariffs on autos from Canada and Mexico, postponing the threat of a potentially damaging trade war.

"The administration's less confrontational stance on trade, signaled by the tariff delay and a preference for open markets, is likely to reduce pressure on the US dollar and prompt a renewed appetite for risk assets, including cryptocurrencies," said BRN analyst Valentin Fournier.

The US Dollar Index (DXY) has consequently fallen to its lowest level since November, a historically bullish indicator for Bitcoin.

Further fueling the rally is growing anticipation around a US strategic cryptocurrency reserve. Commerce Secretary Howard Lutnick stated in an interview earlier this week that President Trump is expected to unveil plans for such a reserve at the upcoming White House crypto summit on Friday.

"We talked about a Bitcoin strategy for the United States in the interview. I believe my comments were taken out of context. There will be a strategy discussed at the White House crypto summit on Friday," a spokesperson for the Department of Commerce told BRN.

Lutnick hinted that Bitcoin would be central to this strategy, potentially enjoying a “unique status” within the framework.

"It’s likely that Bitcoin will have a unique status in this strategy due to its role in the decentralized ecosystem and the administration's familiarity with it through the President's working group report last year," added Fournier.

However, despite the price surge, Bitcoin's open interest, the total number of outstanding futures contracts, has fallen to its lowest level since August 2024, according to Glassnode data.

Historically, low open interest often precedes periods of consolidation or signifies that the market is poised for a significant move, as reduced speculation can create a vacuum for more decisive price action.

Despite the recent price rally, this low open interest suggests that many traders remain hesitant to fully commit to the current market rally, perhaps awaiting more concrete details on both the tariff situation and the strategic reserve initiative.

Looking ahead, the market's next major move could depend on the Federal Reserve's monetary policy trajectory. Current futures markets, according to the CME FedWatch Tool, are increasingly pricing in up to three interest rate cuts this year, a significant shift from previous expectations of just one.

Should the Federal Reserve adopt a more dovish stance, it could provide further tailwinds for risk assets like Bitcoin.

All eyes are now on Friday's White House crypto summit and any further pronouncements from the Trump administration regarding its cryptocurrency policies and trade agenda.