Bitcoin Surges Past $88,500 Amid Political Uncertainty and ETF Inflows
Bitcoin’s price skyrocketed to over $88,500, driven by significant inflows into U.S. Bitcoin ETFs and political tensions surrounding the Federal Reserve. This article delves into the factors behind this rally and what it means for investors.
Bitcoin Price Hits $88,500; Trump’s Fed Fight Boosts ETF Inflows
Bitcoin soared past $88,500 on Tuesday, propelled by a surge of $381.4 million in daily inflows to U.S. Bitcoin ETFs—the highest in three months. The rally found its catalyst in former President Donald Trump’s renewed criticism of Federal Reserve Chair Jerome Powell, with threats to replace him and push for aggressive rate cuts. This political uncertainty sent investors scrambling for hedges, lifting both Bitcoin and gold as traditional safe havens. Trade tensions and a weakening dollar further bolstered the appeal of cryptocurrencies. ARK Invest’s ARKB ETF led the charge with significant inflows, while Ethereum ETFs bled $25.42 million, underscoring a divergence in institutional sentiment. The market’s response was swift and decisive, reflecting Bitcoin’s growing role as a macroeconomic hedge amid fiscal turbulence.
Riot Platforms Secures $100 Million Loan from Coinbase Using Bitcoin as Collateral
Riot Platforms, one of the largest Bitcoin miners, has secured a $100 million credit facility from Coinbase, leveraging its massive BTC holdings as collateral. The deal, structured as a staged withdrawal over two months, will fuel the company’s expansion and corporate initiatives. With an annual interest rate of 7.75%—pegged to the federal funds rate plus a 4.5% premium—the loan matures in 364 days, though Riot may extend it for another year subject to Coinbase’s approval. The miner’s treasury boasts 19,233 BTC, valued at roughly $1.8 billion, cementing its position among the top institutional holders in the crypto ecosystem. The move underscores the growing intersection of traditional finance and digital assets, as major players increasingly deploy Bitcoin not just as a speculative bet but as a strategic financial tool.
Bitcoin Spike Above $93k Causes Major Liquidations
Bitcoin’s violent rally above $93,000 on April 23 triggered a cascade of liquidations, wiping out $652.84 million from the crypto market in a single sweep. The surge left 172,948 traders in the red, with Bitcoin alone accounting for nearly half the losses at $321.70 million. Short sellers bore the brunt—more than 95% of liquidated BTC positions were bets against the price. Bybit recorded the heaviest blow at $163.92 million, while HTX and Gate.io saw $50.87 million and $44 million in losses, respectively. The reckoning followed a sharp rebound: after closing at $93,480 on April 22, Bitcoin climbed almost 8% to $93,710 the next day, leaving a trail of liquidated leverage in its wake.
Bitcoin Price Stuck Below $90K Due to ETF Outflows and Shorts
Bitcoin continues to struggle below the $90,000 threshold, weighed down by persistent ETF outflows now entering their 40th consecutive day. Bearish sentiment dominates the market, with nearly 60% of traders shorting BTC. Leverage has surged to $30.5 billion, while open interest spiked by $3.2 billion in just 24 hours—a clear sign of mounting pressure. MicroStrategy remains a steadfast outlier, holding 538,200 BTC valued at $46.83 billion. As resistance levels tighten and institutional moves loom, Bitcoin stands at a pivotal crossroads.
Sovereign Wealth Funds Accumulating Bitcoin While Retail Exits
Sovereign wealth funds and large institutions were net buyers of Bitcoin in April 2025, contrasting with retail traders who reduced their exposure via ETFs and spot markets. John D’Agostino, Coinbase Institutional’s head of strategy, noted this trend during a CNBC interview. He compared Bitcoin to gold, emphasizing its role as a hedge against currency inflation and macroeconomic uncertainty. Key attributes like scarcity, immutability, and non-sovereign status reinforce Bitcoin’s safe-haven appeal for institutional investors.
El Salvador Proposes Crypto Sandbox to SEC in Bold Cross-Border Move – Is Bitcoin In?
El Salvador has taken a significant step in the crypto space by proposing a cross-border crypto sandbox to the U.S. SEC. The meeting, held on April 22, included representatives from El Salvador’s National Commission on Digital Assets (CNAD), U.S. law firm Perkins Law, and former Goldman Sachs partner Heather Shemilt. The sandbox aims to create a SAFE environment for testing new crypto projects without strict regulatory constraints. A key question is whether Bitcoin will be part of this initiative, given El Salvador’s previous adoption of BTC as legal tender. This move could pave the way for collaborative crypto regulation between the two countries.
