Bitcoin has risen back to $88,500 after stopping at $87,256, bringing a bit of cheerful atmosphere for investors. However, blockchain analysis company Santiment warns that overly optimistic sentiment on social media often signals a market correction. The recent upward trend comes after Bitcoin dropped to $78,000 twice in March due to concerns about economic instability, rising inflation, and high gold prices. Currently, traders predict Bitcoin could reach a new peak from $100,000 to $159,000. Despite increasing optimism, history shows that when most become too optimistic, a correction may occur.
A major shift is happening in the United States, as the government and organizations increasingly recognize Bitcoin's value. The Oklahoma House of Representatives recently passed the Strategic Bitcoin Reserve Bill, with Texas, Arizona, and Utah recognizing Bitcoin as a state treasury asset. This move reinforces Bitcoin's legitimacy as a value store and signals growing confidence in its long-term stability. If more states follow suit, this could boost Bitcoin's institutional acceptance and drive prices higher.
Currently, all attention is focused on a major macroeconomic event in April that could impact Bitcoin price volatility. President Trump's global retaliatory tariff decision is expected to take effect on April 2, introducing trade restrictions that could create financial market instability. History has shown that increased tariffs are typically not beneficial for risky assets like Bitcoin. However, recent reports suggest Trump may loosen this policy, which could bring good news for cryptocurrency. If new tariffs are less severe than expected, investor confidence might increase, leading to more Capital flowing into Bitcoin.
With Bitcoin receiving state-level recognition, institutional support through ETFs, and changing macroeconomic factors, April could be a crucial month. If Trump's tariffs become less restrictive, Bitcoin might see increased demand, pushing its price even higher. Conversely, strict trade policies could cause short-term volatility. However, despite potential fluctuations, Bitcoin's long-term prospects remain strong, with growing acceptance solidifying its position as a key financial asset. Whether Bitcoin surpasses $90,000 or faces a temporary retreat, its fundamental strength and increasing acceptance indicate a promising future.
