The financial world buzzed with activity Tuesday as Bitcoin touched $96,000 and U.S. stocks extended their rebound. Meanwhile, a top analyst warned investors might be ignoring storm clouds on the horizon.
Bitcoin Charges Toward 100K
Bitcoin climbed 1% Tuesday, hovering near $95,400 and closing in on a two-month high. The rally defied lingering concerns over U.S. tariff policies, with major cryptocurrencies rising 1.1%. Bitcoin Cash led gains, surging 6.3%, while crypto-linked stocks like Coinbase and Strategy edged up modestly. Janover, a firm betting big on Solana tokens, skyrocketed 16% for the second straight day.
On the other hand, U.S. spot Bitcoin ETFs devoured $3.1 billion in inflows over five days, signalling heavy institutional demand. “ETFs are in Pac-Man mode,” said Bloomberg’s Eric Balchunas, noting widespread investor participation.
Stocks Extend Recovery Despite Warning Signs
The S&P 500 and Nasdaq each rose 0.55%, continuing their rebound from early April’s tariff panic. Yet cracks emerged beneath the surface: consumer confidence hit a four-year low, and job openings slid to 7.19 million, missing forecasts.
Investors shrugged off the data, betting instead on potential tariff rollbacks. Commerce Secretary Howard Lutnick hinted a trade deal with an unnamed nation was nearing completion, though details remained scarce. “Markets are pricing in optimism, not reality,” argued Bitwise strategist Jeff Park.
Analyst Slams “Blind” Market Ignoring Dollar Risks
“Hard to fathom how blind the market really is,” Park posted on X. He criticised Wall Street’s fixation on Federal Reserve rate cuts, arguing tariffs and “dollar weaponization” could permanently dent U.S. creditworthiness.
“A Fed cut means nothing if global trust in the dollar erodes,” he said, warning borrowing costs worldwide could spike. His comments echoed concerns that markets are overlooking structural risks like fading consumer spending and shaky job growth to chase short-term gains.
Bitcoin’s Decoupling From Stocks
Notably, Bitcoin’s rally diverged from tech stocks this week, a shift analysts tie to its growing appeal as “digital gold.” ARK Invest now predicts Bitcoin could hit $2.4 million by 2030 in a bullish scenario, citing institutional adoption.
Technical indicators also turned positive: Bitcoin shattered resistance at $94,300, with traders eyeing $102,500 next. However, failure to hold $93,500 could trigger a drop to $88,615. “Investors see tariffs as yesterday’s problem,” said analyst Carlos Guzman. “Bitcoin’s becoming a hedge against fiscal uncertainty.”
Trade Deal Hopes Clash With Economic Reality
While markets cheered Lutnick’s trade deal tease, skeptics noted persistent headwinds. The Conference Board reported consumer pessimism at its worst since 2011, and JOLTS data revealed slowing hiring demand.
Still, optimism prevailed. Over $2.6 billion flooded Bitcoin ETFs this week, and short sellers faced $700 million in liquidations as prices climbed. “Everyone’s chasing momentum,” said one trader, “but the foundation feels shaky.”
What Comes Next?
Fidelity’s Jurrien Timmer warned U.S. stocks face limited growth long-term, advising bets on undervalued global markets. For Bitcoin, bulls target $100,000, though bears warn a rejection at $95,000 could spark volatility.
Park’s “blind market” critique lingers as a reality check. With tariff impacts still unfolding and dollar dominance in question, analysts urge diversification. “Don’t mistake a calm market for a healthy one,” Park cautioned. “The real risks haven’t vanished; they’ve just been ignored.”
As markets dance between optimism and denial, one truth emerges: In a world of weaponised dollars and trade wars, traditional rules may no longer apply. Investors, proceed with eyes wide open.
