Bitcoin Smashes $93K as $600M Is Liquidated — Markets Bet Big on Easing U.S.-China Tensions

BTC Breaks Seven-Week High as Optimism Returns

Bitcoin has reclaimed the spotlight, surging past the $93,000 mark for the first time in nearly two months. The rally comes amid renewed optimism over U.S.-China relations and growing institutional confidence, setting off a wave of liquidations totaling more than $600 million across the broader crypto market.

According to data from Coinglass, over $602 million in positions were liquidated in the past 24 hours alone — a 130% increase compared to the previous day. The aggressive shift in sentiment highlights how quickly leverage can unravel in volatile markets.

Meanwhile, Bitcoin is trading around $93,069 at the time of writing, representing a 5% gain over the past 24 hours. Ethereum, Solana, and other major altcoins joined the rally, pushing the total crypto market capitalization beyond the $3 trillion milestone once again.

Liquidations Spike: $600M Wiped Out as Bulls Take Charge

Surge in Open Interest Signals Renewed Risk Appetite

With BTC’s breakout triggering short squeezes, traders are placing fresh leveraged bets. Open interest across the crypto derivatives market rose 14% to $121.6 billion, suggesting that investors are not only re-entering the market but doing so aggressively.

While the overall rally brought some relief, the Altcoin Season Index remains at just 16 — still deep in “Bitcoin Season” territory. This indicates capital rotation remains heavily skewed toward BTC, with altcoins playing catch-up.

🇺🇸 Trump’s Tariff Pivot Sparks Institutional FOMO

Market Cheers Cooling Rhetoric on U.S.-China Trade War

Fueling this rally was a major shift in geopolitical sentiment. President Donald Trump struck a more dovish tone during an April 22 White House press briefing, stating that U.S. tariffs on Chinese goods would “come down substantially,” although he ruled out full elimination.

Trump’s remarks were supported by Treasury Secretary Scott Bessent, who described the current trade dynamics as “unsustainable” and hinted at de-escalation “in the very near future.” Markets — both traditional and crypto — quickly priced in the reduced trade war risk.

BTC as the Hedge-of-Choice in a Volatile Macro Climate

This shift has once again reinforced Bitcoin’s growing role as a macro hedge. The rally was further bolstered by Trump’s reassurance that Federal Reserve Chair Jerome Powell would not be replaced, calming investor fears over aggressive monetary reshuffling.

QCP Capital summed it up well in a Telegram note: “As capital rotates into safe-haven and inflation-hedging assets, BTC and gold are proving to be key beneficiaries of the exodus from USD risk.”

Bitcoin ETFs See Record Inflows — Institutions Are Back

U.S.-listed Bitcoin ETFs booked their third consecutive day of net inflows, with April 22 alone recording $936 million in fresh investment — the highest daily inflow since Trump took office earlier this year, according to SoSoValue.

This institutional vote of confidence helped drive a Coinbase premium, signaling strong U.S.-based demand for physical BTC exposure. Such inflows also suggest that ETF investors are front-running potential macro tailwinds from policy shifts and geopolitical détente.

Gold, Stocks, and Crypto All React — But Risks Remain

Broader Markets Rally Alongside BTC

Global markets rallied in unison. The S&P 500 jumped 2.51%, the Nasdaq soared 2.87%, and the Dow climbed 2.66%. Gold saw dramatic price action, briefly touching an all-time high of $3,500 before retreating sharply — an indication of volatility amid changing economic expectations.

Warning Signs from On-Chain and Macro Data

Still, not everything is sunshine and gains. CryptoQuant flagged that Bitcoin demand has dropped by 146,000 BTC over the past 30 days. While improved from March, this still suggests tepid investor engagement beneath the surface. Their “demand momentum” metric is now at its lowest since October 2024.

Moreover, USDT growth — a proxy for market liquidity — remains below the historical $5B threshold that typically accompanies sustained BTC rallies. In the past two months, Tether has added only $2.9B, pointing to soft liquidity conditions.

Bitcoin is also approaching a critical resistance zone between $91,000 and $92,000 based on the “Trader’s On-chain Realized Price” metric, which has repeatedly acted as a ceiling in prior bearish conditions.

Will Bitcoin Breakout Hold?

With institutional flows rising and geopolitical clouds lifting, Bitcoin appears poised for further upside — but caution is warranted. The combination of weak altcoin participation, soft liquidity, and fragile on-chain demand suggests that a breakout above $93K may not yet be sustainable.

The next test for markets will come from the Federal Reserve’s upcoming interest rate decision and further developments in U.S.-China trade diplomacy. A definitive policy shift could supercharge the current rally, but any walk-backs from the Trump administration could easily reverse sentiment.

Watch Macro, Not Just Momentum

For executive teams and high-net-worth investors, the key lesson is clear: Bitcoin remains a barometer of global macro uncertainty. The crypto market’s reaction to geopolitical headlines, ETF flows, and central bank stability underscores its evolving role as an institutional-grade asset.

Expect volatility ahead — but also opportunity.

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