Bitcoin briefly surges past $88K amid U.S. tariff tensions

On the night of April 3, Bitcoin briefly surged above $88,000, reacting to reports of the U.S. imposing record-high import tariffs. The price peaked at $88,500 before correcting to $83,500 by morning, where it currently trades. Despite the pullback, this level remains higher than the previous day’s close.
 

The rally was sparked by uncertainty surrounding President Donald Trump's announcement of 25% tariffs on imports from 15 countries, including China, Mexico, and India. Several nations, such as Israel and India, have already declared they will not retaliate with their own tariffs, fueling investor interest in crypto assets amid rising geopolitical tensions.
 

Short Squeezes Fuel Night Rally

Over the past 12 hours, crypto markets saw $145 million in total liquidations, with $69.4 million coming from Bitcoin short positions. Analysts attribute the night rally to a cascade of short liquidations combined with increased spot market activity.
 

The return of the Coinbase Pro premium and consistent buying pressure, supported by recent BTC purchases by companies like GameStop, MARA, Metaplanet, and Strategy, suggest that the market structure may be shifting to a more bullish phase. Strategy, in particular, continues to increase its Bitcoin reserves.
 

Market Sentiment Gradually Improving

Despite short-term volatility, technical indicators point to a potential recovery. Bitcoin is holding above its 50-day moving average and near a 3-month descending trendline resistance, which could act as a breakout level if momentum continues.
 

Analysts previously noted that April could be a pivotal month for Bitcoin, especially given the combination of growing institutional interest and global macroeconomic instability.