The cryptocurrency market erupted in a broad-based rally on April 10, triggered by former U.S. President Donald Trump’s announcement to suspend "reciprocal tariffs" on multiple countries for 90 days. The news sparked renewed investor confidence across digital assets, with Bitcoin leading the charge.
At the time of reporting, Bitcoin had surged over 5%, while Ethereum climbed more than 7% and Dogecoin gained over 6%. The bullish momentum sent shockwaves through the derivatives market, where short positions were swiftly wiped out.
👉 Discover how market shifts create new opportunities for smart investors.
Market Reaction and Investor Sentiment
According to data from Coinglass, nearly 130,000 traders were liquidated within the past 24 hours, resulting in approximately $464 million in total losses—primarily from leveraged short bets that collapsed under the sudden price surge. This level of liquidation highlights the fragile state of bearish sentiment amid volatile macroeconomic signals.
Despite ongoing concerns about a potential economic downturn and uncertainty surrounding U.S. trade policy, Bitcoin has demonstrated remarkable resilience. Bernstein Research noted that since the day after the U.S. announced sweeping tariff plans (last Thursday) through Monday, Bitcoin declined by about 7%. In contrast, traditional markets suffered deeper setbacks: the Dow Jones Industrial Average and S&P 500 both dropped roughly 10%, while the Nasdaq Composite fell 11%.
This outperformance underscores a growing divergence between crypto and traditional financial markets—a trend increasingly attributed to structural changes in Bitcoin ownership and demand drivers.
Institutional Demand Fuels Resilience
Gautam Chhugani, analyst at Bernstein, highlighted in a Tuesday report that Bitcoin’s recent strength is largely driven by rising institutional adoption. Key contributors include Bitcoin ETFs and corporate treasury strategies, such as those pursued by MicroStrategy.
Chhugani explained that most of the selling pressure came from short-term retail traders rather than long-term holders. Historically, steep Bitcoin drawdowns have been fueled by mass retail panic. However, the shift toward institutional ownership appears to be stabilizing the asset class.
Today, ETFs hold around 5% of Bitcoin’s total supply, with an additional 5% held by corporations—a significant structural change that enhances market depth and reduces volatility from speculative retail behavior.
Even though Bitcoin is down about 15% year-to-date, ETF inflows remain positive overall. From the start of the year through early April, these funds attracted approximately **$770 million in net inflows**. While there was a net outflow of $911 million over the past 30 days, the longer-term trend still reflects sustained institutional interest.
Corporate balance sheets are also playing a critical role. Companies like MicroStrategy continue to accumulate Bitcoin with capital horizons extending beyond five years, providing a stable base of demand unaffected by short-term price swings.
Expert Price Forecasts for 2025
Analysts are increasingly optimistic about Bitcoin’s trajectory through 2025, citing expanding institutional adoption and limited supply as key catalysts.
James Butterfill, Head of Research at CoinShares, projects that Bitcoin could trade between $80,000 and $150,000 in 2025. From a long-term perspective, he believes the asset has the potential to reach $250,000, although this milestone is unlikely to occur within the next two years.
Alex Thorn, Galaxy Digital's Head of Research, forecasts even more aggressive gains. He expects Bitcoin to surpass $150,000 in the first half of 2025** and reach **$185,000 by year-end. At that valuation, Bitcoin’s market capitalization would represent approximately 20% of gold’s current market cap—a symbolic threshold indicating growing recognition as a global store of value.
Thorn emphasizes that adoption by institutions, corporations, and potentially sovereign nations will be the primary engine behind this growth. Since its inception, Bitcoin has outperformed all other major asset classes—including gold and the S&P 500—in terms of cumulative returns, and this trend is expected to continue into 2025.
Geoffrey Kendrick, Head of Digital Asset Research at Standard Chartered, shares a similar outlook. In a recent report, he projected that Bitcoin could hit $200,000 by the end of 2025.
He anticipates that institutional capital flows into Bitcoin this year will match or exceed the record levels seen in 2024. Additionally, he expects MicroStrategy’s Bitcoin purchases to either meet or surpass last year’s volume—further tightening supply and amplifying upward pressure on price.
👉 See how top investors are positioning themselves ahead of major market moves.
Frequently Asked Questions (FAQ)
Q: What caused the recent surge in Bitcoin and other cryptocurrencies?
A: The rally followed Donald Trump’s announcement suspending reciprocal tariffs on several countries for 90 days. This eased global trade tensions and boosted investor sentiment across risk assets, including digital currencies.
Q: Why did so many traders get liquidated during the price jump?
A: A large number of leveraged short positions were placed ahead of the rally. When prices rose sharply, these positions were automatically closed (liquidated), leading to over $460 million in losses for nearly 130,000 traders.
Q: Are Bitcoin ETFs really influencing the market?
A: Yes. Bitcoin ETFs now hold about 5% of the total supply. Their consistent buying—even during downturns—adds structural demand and helps stabilize prices during volatile periods.
Q: Is institutional adoption really different from retail investing?
A: Absolutely. Institutions typically have longer investment horizons and use regulated vehicles like ETFs. This leads to more stable holding patterns compared to retail traders who may react emotionally to short-term price changes.
Q: How realistic are predictions of Bitcoin reaching $200,000 by 2025?
A: While no forecast is guaranteed, growing institutional inflows, limited supply, and increasing macroeconomic uncertainty support bullish scenarios. Multiple reputable firms—including Standard Chartered and Galaxy Digital—back similar price targets.
Q: Could Bitcoin ever match gold’s market cap?
A: Currently, Bitcoin’s market cap is around 20% of gold’s. Reaching parity would require a price far above $1 million per BTC. While not expected by 2025, many analysts see it as a long-term possibility given continued adoption.
👉 Stay ahead of the curve—explore tools that help you track real-time market movements.