Bitcoin has once again taken the world by storm, rising above $87,000 on April 21, 2025, and capturing the imagination of every investor and analyst. This is up to its highest level since late March. It ignites fresh hopes for an impending bull market wherever that alluring $90k level resides. Here are three reasons why the cryptocurrency is skyrocketing right now. Macroeconomic changes, increasing investments by institutions and tactical purchases by bigger players are all pushing its rise.
As of Monday morning, Bitcoin is now up to about $87,325, up 2.4% in the last 24 hours. U.S. dollar is getting weaker, and trade tensions are increasing. At the same time, inflationary fears are pushing more people to view Bitcoin as a hedge for downturns in traditional financial markets.
Institutional Investment Fuels Bitcoin's Ascent
One reason for the Bitcoin price explosion is increasing institutional demand. On April 21—all-day cumulative volume across some of the largest proposed Bitcoin ETFs including BlackRock’s IBIT and Fidelity’s FBTC—exceeded 1.5 million unique shares traded. They did more than $300 million in daily volume in the first two hours alone! This event highlights the growing acceptance and integration of Bitcoin into mainstream investment portfolios.
Additionally, the Bitcoin accumulation by heavyweights in the crypto world, popularly called “whales,” contributed to this. And yet, since the start of March, over 60 new whale wallets have appeared, adding at least 1,000 BTC. As recently as April 15, the wallet count had surpassed 2,107 total active wallets. We view this strategic accumulation as a sign of a long-term bullish outlook among these major players.
The recent breakout above $85,000, which had previously served as a strong resistance level, adds even more credence to the bullish trend. Financial analysts now predict Bitcoin’s newfound momentum will allow it to reach the $90,000–$92,000 region. This zone used to serve as a pretty compelling support floor.
Macroeconomic Factors Bolster Bitcoin's Appeal
Bitcoin’s return from the crypt has been fueled by increasing instability in traditional financial markets. In today’s world, the U.S. dollar is pretty darn strong. With trade wars growing and inflation concerns ever-present, investors are more than ever looking for hedges. Bitcoin’s decentralized nature and finite supply make it an increasingly attractive hedge against these macroeconomic headwinds.
The volatility that has characterized traditional markets recently. At the same time, Bitcoin’s credibility as a store of value and safe haven asset is being boosted. This story is further bolstered by the rise of Bitcoin more broadly, with institutional investors and corporations continuing to adopt BTC.
This combination of macroeconomic factors has formed a perfect storm for Bitcoin. With the current geopolitical climate causing panic, this is pushing its price up and encouraging retail/institutional investors once again.
Navigating the Road Ahead
Though the bullish momentum seems formidable at the moment, traders should be prudent and pay attention to important resistance levels. Anything that causes a halt to, let alone reversal of, this escalatory path will trigger at least a correction, but arguably a long cycle of consolidation.
The cryptocurrency market is volatile by nature, and unexpected events can cause dramatic price fluctuations. As always investors should do their own research and know their own risk tolerance before making any investment.
Bitcoin has been approaching the $90k threshold. The market thus remains very hungry to see if it can hold that upward establishment or not. The next few weeks will be very telling in deciding if this is a lasting rally or just a short-term pop.
