Bitcoin Nears $100K While U.S. Markets Recover

Bitcoin has sustained momentum around $96,000 following a 14% rise in April, solidifying its status as a top-performing asset amid turbulent economic signals.

The U.S. stock market closed with strong gains on Friday (May 2), with the Nasdaq leading at +1.51%. Meanwhile, gold reached $3,247/ounce, and oil fell to $58.38/barrel despite OPEC production cuts. The crypto market capitalization stands at $3.109 trillion.

Bitcoin has now surpassed silver, becoming the seventh-largest asset globally. This bullish momentum coincides with economic signals that paint a mixed picture of the U.S. economy.

U.S. Economic Indicators Fuel Market Reactions

The latest Q1 GDP data from the U.S. revealed a contraction of -0.3%, sharply deviating from the forecasted +0.2% and a significant drop from the +2.4% in Q4. Simultaneously, the ADP nonfarm payroll report showed only 62,000 new jobs in April, missing expectations. However, the official Labor Department numbers reported 177,000 new jobs, exceeding estimates and suggesting labor market resilience despite slowing growth.

Former President Trump urged the Federal Reserve to cut interest rates, emphasizing falling energy prices, declining food costs, and steady employment. In his words: “There’s no inflation. The Fed should cut rates!” Markets responded positively to the job data and the broader expectation of looser monetary policy, with the Dow Jones rising over 500 points. The S&P 500 marked its longest winning streak in 20 years.

Just two weeks ago, markets were gripped by recession fears. Yet renewed inflows from investment funds and rising confidence that the Fed may ease policy have sparked a sharp rebound. Analysts continue to caution that trade tensions, banking scares, and inflation spikes are transient. In the long run, liquidity injections remain likely, with eventual Fed rate cuts.

Bitcoin: Store of Value—and More

Bitcoin mirrors gold in its long-term trajectory but differs in its response to both risk-on and risk-off environments. It acts as both a defensive hedge and a speculative asset, drawing capital from diverse investor bases—from long-term holders to tech-driven traders. With BTC dominance hitting 63%, levels not seen since January 2021, the focus remains firmly on Bitcoin even as some altcoins gained between 40–200% recently.

Investor sentiment has proven volatile. Just a month ago, many doubted Bitcoin’s sustainability below $80,000. Today, it's near $100,000. The lesson: a single policy shift from the Fed or positive trade news can swiftly reverse sentiment. Even if the Fed hasn't cut rates yet, sustained Bitcoin gains could force action, possibly setting up a strong altcoin season ahead. With 2025 widely expected to be a cyclical growth year, there's ample time for the market to define its next leg.

Ethereum Struggles as Bitcoin Shines

Ethereum ended April in the red, marking four straight months of decline. Despite Bitcoin’s surge, ETH hovers around $1,800—far below its historical peak. Increased competition from blockchains like Solana and Tron has challenged Ethereum’s dominance. In response, its development team has shifted strategy, refocusing on Layer 1 upgrades to directly improve network performance.

While developers claim this is a roadmap reprioritization rather than a trend shift, markets want concrete signals. If Ethereum proves it's on the right path, investor confidence could rebound. Price reflects future expectations, and Ethereum still holds a chance if it adjusts effectively.

U.S.–China Trade Tensions Continue

Tariff headlines now spark less panic. Investors are seasoned by past clashes and anticipate a familiar pattern—rising tensions, prolonged negotiations, eventual easing. While there’s no resolution yet, signs of back-channel diplomacy suggest de-escalation is in motion.

Temu, a major Chinese e-commerce platform, halted direct shipments to the U.S. after new tariffs and the end of the “de minimis” exemption for low-value goods. Their attempt to pass import costs to consumers backfired, with price hikes up to 150% failing to preserve demand.

China’s April manufacturing PMI slipped to 49, signaling contraction for the first time since January. Beijing offered to negotiate but requested the U.S. pause tariffs as a goodwill gesture. Meanwhile, Trump’s administration eliminated the “de minimis” rule, removing tax exemptions for millions of parcels—striking at the core of China’s export model.

China discreetly lifted tariffs on about 25% of U.S. imports, including ethane and semiconductors. Officials hinted at willingness to resolve trade disputes, even addressing U.S. concerns on fentanyl trafficking. Rumors swirl of a pending Trump–Xi call. Both sides appear ready to start formal talks despite public posturing.

Corporate and Global Trade Reactions

Apple warned that tariffs could cost them $900 million this quarter. Nvidia’s CEO confirmed future tech development will occur domestically, citing strong support from Trump. Ford echoed similar sentiments, emphasizing its status as the largest U.S. automaker and full support of Trump’s trade vision. Trump will also temporarily reduce auto part tariffs to help domestic manufacturers adjust.

India offered a rare “future-most-favored-nation” clause to expedite a U.S. trade deal, ensuring the U.S. always gets the best terms. Europe proposed a €50 billion trade package in exchange for zero tariffs, while Canadian Prime Minister Mark Carney plans a visit to Washington to finalize a bilateral deal.

Conclusion

As Bitcoin rises, traditional markets stabilize, and geopolitical pressures shift behind the scenes, a new economic landscape is taking shape. Investors continue to favor Bitcoin’s decentralized security and growth profile amid complex macro dynamics. With Ethereum recalibrating, global trade realigning, and U.S. policy possibly easing, the crypto market may be laying foundations for a transformative second half of 2025.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Always conduct your own research or consult a licensed financial advisor before making investment decisions.