Bitcoin price surged for the second consecutive day, reaching an intraday high of $88,500 as increased buying activity in the spot markets obliterated bearish positions. The dramatic price movement coincided with reports that the Trump administration has not yet finalized the much-anticipated “Liberation Day” tariffs, easing concerns over escalating geopolitical tensions.
In parallel developments, several key US trade partners, including Israel, Mexico, and India, have either reversed their previously imposed tariffs on American imports or indicated they will refrain from retaliatory tariffs against the United States. This broader de-escalation in the international tariff atmosphere seemingly boosted investor confidence and sentiment toward risk assets, including Bitcoin.
Despite the bullish momentum, the Bitcoin price currently trades just beneath a three-month long descending trendline resistance area—an important convergence level aligned with the 50-day moving average. Historically, Bitcoin has faced repeated rejection at this particular resistance, creating uncertainty about the sustainability of current highs.
Market data reveals significant activity in derivative exchanges, with total liquidations reaching $145 million over the past 12 hours. Of that amount, Bitcoin shorts accounted for $69.4 million, underscoring the extent to which the sharp upward move trapped bearish traders. Analysts attribute today’s spike, at least in part, to forced short covering, which has propelled the price beyond the $88,500 mark.
Meanwhile, beyond derivative markets, fundamental factors continue to support a more durable bullish narrative. Data from analytics platforms indicates a resurgence of significant spot market buying activity, particularly on Binance and Coinbase Pro. This recent uptick has coincided with a return of the Coinbase Pro BTC premium—an indicator often linked to institutional accumulation, sparking speculation that larger players such as Strategy have resumed Bitcoin purchases.
Over recent weeks, prominent players in corporate Bitcoin accumulation—GameStop, MARA, Metaplanet and Strategy—have publicly signaled intentions to expand their crypto reserves. GameStop, notably, has secured $1.5 billion earmarked for Bitcoin purchases, while Strategy continues to increase its holdings steadily.
Looking ahead, market participants will closely monitor developments in the US-led tariff policy rollout. Any escalation in geopolitical tension, particularly if retaliatory tariffs re-emerge, could potentially cap Bitcoin’s further price gains and interrupt the current upward momentum. Conversely, continued stabilization or easing of trade-related tensions, alongside steady institutional buying pressure, could drive Bitcoin beyond the current resistance and toward new multimonth highs, with some analysts eyeing the psychological $90,000 level as the next target.
