Bitcoin Breaks $93K for the First Time Since March. Why is Crypto Up Today?

Bitcoin began a sharp upward movement on Tuesday evening, surpassing $93,000 for the first time since March. Over the past 24 hours, the asset has gained nearly 6%. Simultaneously, the market experienced a wave of liquidations, especially among short traders who lost more than $500 million. More on the reasons below.

Reasons Behind the Surge

The rise began even before the U.S. President's statements, but according to experts, his comments accelerated the movement. Trump said he had no intention of firing Federal Reserve Chair Jerome Powell, despite his recent critical remarks.

"I never intended to. I just wish he would act more decisively and lower the rate," Trump told reporters.

In recent weeks, the president had repeatedly criticized the Fed's actions, increasing investor concerns about possible interference in the regulator’s independence.

Amid these concerns, interest in safe-haven assets grew — gold prices approached $3,500 per ounce. However, market participants focused their attention on bitcoin, which broke through key levels as rhetoric on China and trade tariffs softened.

It was also revealed that Trump will meet with Chinese President Xi Jinping in May. He also stated that tariffs against China would be sharply reduced, though not to zero.

An additional factor could have been a statement from Elon Musk that he would step back from projects reforming government processes under D.O.G.E. and focus on Tesla. Despite weak quarterly results, Tesla shares rose after market close, according to a recent report.

Market participants believe both Trump and Musk may take more moderate positions, which further supports positive expectations.

Whale Pressure on the Market

Amid BTC's rise, analysts at Lookonchain recorded two large short positions opened on bitcoin at $92.4K and $92.6K. The total trade volume reached $74.5 million. Both orders were opened with x6 leverage, with liquidation levels near $107K.

Analysts believe the positions likely belong to a single investor — either a whale or an institutional player.

ETF Inflows Return

After weeks of outflows, spot bitcoin ETFs in the U.S. showed strong growth. According to Farside Investors, $381 million flowed into funds on Monday, with none reporting outflows. By the end of Tuesday, total inflows reached $719 million.

Final figures from BlackRock have yet to be published. If their fund also reports a positive result, the day could become the most successful for bitcoin ETFs since January.

Marketwide Surge in Activity

The overall market rose more than 6,4% in 24 hours. Ethereum gained 13,4%, XRP rose 7,3%, and Solana increased by 8,9%. Meme tokens grew by an average of 15%. Activity is also noted in sectors related to artificial intelligence (AI) and real-world asset tokenization (RWA).

Short position holders suffered significant losses. According to Coinglass, total liquidations exceeded $623.6 million, with $553 million from shorts alone.

Smart Bitcoin Holders

Meanwhile, according to a report from CryptoQuant, a sharp divergence is emerging in the behavior of long-term and short-term BTC holders.

For the first time since the local peak, the Net Position Change metric for Long-Term Holders (LTH — those holding the asset for more than 155 days) has turned positive. According to experts, this indicates that experienced market participants, attuned to market cycles, are returning to accumulation after months of selling. Their activity doesn’t necessarily imply massive capital inflows but often signals strategic portfolio restructuring.

Short-Term Holders (STH), on the other hand, continue selling coins at a loss. Their net outflows remain negative, pointing to capitulation and lack of confidence amid recent corrections. Historically, such behavior is observed near local bottoms.

Analysts note that this situation — when STH capitulate while LTH accumulate — often signals the early stage of a reaccumulation phase. Short-term price fluctuations may persist, but the market is fundamentally gaining a solid base for growth.

Former hedge fund manager and television host Jim Cramer also commented on the situation, stating that the current rebound could turn into a full-fledged recovery.

This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.