Bitcoin (BTC) Price Surges Above $87,000, Targeting New Monthly Highs

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.

Bitcoin (BTC) price rose above $87,000 on April 2, 2025, setting a new monthly high as markets awaited the announcement of sweeping trade tariffs by President Donald Trump.

The cryptocurrency gained around 2% over the past 24 hours, reaching an intraday high of $87,300 as traditional markets showed weakness.

Bitcoin’s price action was unfolding at a key technical level, with several important trend lines converging. These included various simple and exponential moving averages that could determine the next directional move.

Trading volumes remained mixed as investors monitored the implications of Trump’s upcoming “Liberation Day” tariff announcement, scheduled for 3 pm Eastern Time from the White House Rose Garden.

Technical Analysis Shows Potential Breakout

Popular analyst Rekt Capital highlighted that Bitcoin was approaching a key technical breakout. The 21-week Exponential Moving Average (EMA) currently stands at $87,650, presenting a significant resistance level.

“Bitcoin is one Daily Candle Close above & retest of the Downtrend away from breaking out into a new technical uptrend,” Rekt Capital stated on social media.

If Bitcoin manages to close above this level on the weekly timeframe, it could indicate 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% shortly, setting 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 seeking 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 a noteworthy 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 and build a sizable Bitcoin reserve. This move represents high-profile entry into the Bitcoin mining sector and could be viewed as a vote of confidence in the cryptocurrency’s future.

Tariffs Could Have Mixed Impact

Despite today’s gains, analysts remain cautious about the potential implications of tariffs 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 such as a pro-bitcoin president and favorable legal outcomes for companies like Coinbase.

Bitcoin is currently trading approximately 20% below its all-time high of just over $109,000, which was reached earlier this year.