While market skeptics were busy predicting doom, Bitcoin shattered expectations by rocketing past $87,400 on April 21, 2025. The surge came as former President Trump‘s move to replace Fed Chair Jerome Powell sent shockwaves through the financial markets, triggering a massive sell-off in the US dollar. So much for central bank independence.
The dollar index plummeted to 98.182, sending investors scrambling for safe havens. Gold shot up to $3,385 per ounce, but Bitcoin stole the show. Unlike its usual dance partner, the stock market, Bitcoin diverged from traditional risk assets. While S&P 500 and Nasdaq futures were seeing red, crypto traders were counting their gains. The dramatic price movement represented a 24-hour $3,000 increase in Bitcoin’s value.
Technical analysts had a field day with this one. Bitcoin broke out of a classic falling wedge pattern – the kind that makes chart enthusiasts weak in the knees. Heavy trading volume confirmed the breakout, and the 50-day moving average played defense like a champ. Short-term holders remain particularly vulnerable to market fluctuations and could trigger significant sell-offs.
Chart geeks rejoiced as Bitcoin smashed through the falling wedge, backed by massive volume and solid technical support.
Still, the experts warn that Bitcoin needs to close above $88,000 to officially declare this downtrend dead. The $87,867-$106,839 range is turning into quite the battleground. About 5.58 million addresses are sitting on 3.79 million BTC in this zone, most of them underwater on their investment. Users can now earn substantial returns through proof-of-stake validation, with annual yields ranging from 3-15% on their holdings.
That’s roughly $367 billion worth of Bitcoin looking for a chance to break even. Bitcoin ETFs continue to pump money into the market, providing some backbone to this rally.
But here’s the catch – on-chain activity isn’t exactly setting records. Network usage remains oddly quiet, like a party where half the guests didn’t show up. DeFi experts are raising eyebrows at the weak transaction volumes.
The real kicker? Bitcoin’s finally breaking free from its stock market chains. As traditional markets wobble under the weight of Fed drama, crypto’s doing its own thing.
Whether this independence lasts is anyone’s guess, but for now, Bitcoin’s enjoying its moment in the spotlight.
