Bitcoin Recovery Anticipated by May Amid Liquidity Ease

As the world’s largest cryptocurrency by market capitalization, Bitcoin has been facing turbulent times in the $2.85 trillion crypto market. Recent political announcements have added to the volatility, but analysts remain optimistic about a potential recovery soon.

Fed to the Rescue? Bitcoin Could Recover by May as Liquidity Eases

Bitcoin, the largest cryptocurrency by market capitalization, has been navigating a turbulent $2.85 trillion crypto market. On April 2, 2025, President Donald Trump announced global reciprocal trade tariffs, which triggered an 8.5% single-day drop in Bitcoin’s price. Despite this uncertainty, analysts are optimistic about Bitcoin’s potential recovery. Charles Edwards of Capriole Investments and other experts believe that the Federal Reserve’s shift toward easing liquidity could spark Bitcoin’s recovery as early as May 2025. This outlook is based on data and expert insights into the market dynamics.

Bitcoin Holders Double Down in Early April

Since the start of April, Bitcoin (BTC) has seen an increase in conviction from both short-term and long-term holders. According to Glassnode, short-term holders—those who have held BTC for less than 155 days—typically react to price movements but have recently become value-driven buyers despite BTC being 25% below its all-time high. This group has grown by 15,000 BTC since April, now holding over 3.7 million BTC. However, since February, they have distributed approximately 280,000 BTC, likely due to profit-taking from the November–December rally.

Bitget Secures Full Licensing in El Salvador for Crypto Services

Bitget, a cryptocurrency exchange, has secured a digital asset service provider license from El Salvador’s National Commission of Digital Assets. This follows an earlier approval for a Bitcoin services provider license in 2024. The new license allows Bitget to offer more services in the country, including spot and derivatives trading, staking, and other yield-focused products. This move is linked to El Salvador’s continued push to stay ahead with its progressive and transparent approach to Bitcoin (BTC).

China’s Retaliatory Tariffs Shake Global Markets, Bitcoin Dips To $82K

Global markets are on edge as China slams the U.S. with a 34% tariff, sending shockwaves through Wall Street and crypto. Bitcoin, which had recently shown signs of recovery, climbing above $84K, took a hit as Nasdaq futures plunged further. Bitcoin slipped from $84,600 to $83,000, however the drop isn’t as sharp as expected. That’s because the market’s biggest fears are now out in the open as uncertainty often causes more stress than the actual event itself. Since Trump took office, fears of tariffs and a global trade war have rattled markets, leading a massive drop in investor confidence. This fear-driven sell-off dragged Bitcoin down from its record high of over $109,000. [Tagged Coins: BTC]

U.S. March Jobs Growth Surpasses Forecast, Bitcoin Unchanged

The U.S. employment situation remained strong in March, with nonfarm payrolls increasing by 228,000, blowing past the forecast of 135,000. The unemployment rate ticked up to 4.2%, higher than the consensus estimate of 4.1%. Despite the significant jobs growth, the price of Bitcoin (BTC) remained relatively unchanged, hovering around $82,600 following the report.