TLDR
- Bitcoin rebounded to $85,000 after falling to $74,500 last week, showing a 6.79% weekly increase
- Corporate Bitcoin holdings grew to $57 billion in Q1 2025, with 79 public companies now holding Bitcoin
- US Treasury liquidity injections of over $500 billion since February may be fueling Bitcoin’s rise
- Technical analysis suggests a possible short-term target of $90,000
- Bitcoin price is showing bullish momentum with support around $84,200 and resistance at $85,500
Bitcoin has bounced back strongly from last week’s decline, now trading steadily above the $85,000 level. The world’s largest cryptocurrency saw a 6.79% increase over the previous week, marking its best weekly performance since January 2025. This recovery comes amid several supportive macroeconomic developments, including Treasury liquidity injections and temporary tariff exemptions announced by the Trump administration.
After hitting yearly lows at $74,500, Bitcoin staged an impressive 15% recovery to $86,100 during April 9-13. The cryptocurrency is currently trading above $83,500 and the 100-hour Simple Moving Average, with a bullish trend line forming with support at $84,200.
Technical indicators suggest Bitcoin might attempt to clear the $85,500 resistance level soon. If successful, the next key resistance would be around $86,200, potentially opening the path toward $87,500 and $88,000.
However, if Bitcoin fails to break above $85,500, it could face a decline toward support levels at $84,200, $83,200, and potentially $82,200 if selling pressure increases.
Corporate Bitcoin Holdings Reach New Heights
The first quarter of 2025 saw a substantial increase in corporate Bitcoin holdings. According to crypto fund issuer Bitwise, Bitcoin held on publicly traded companies’ books grew by 16.1% during Q1 2025.
Public companies added 95,431 BTC for the quarter, bringing their total holdings to approximately 689,000 coins. The combined value of these holdings reached $56.7 billion by the end of Q1, representing a 2.2% increase in value at a price of $82,445 per BTC.
The number of public companies owning Bitcoin climbed to 79, with 12 companies making their first Bitcoin acquisitions during Q1. Hong Kong construction company Ming Shing emerged as the largest first-time buyer through its subsidiary Lead Benefit, which purchased 833 BTC in totalâ500 BTC in January followed by an additional 333 BTC in February.
Video platform Rumble also joined the corporate Bitcoin holders with a purchase of 188 BTC in March.
On April 14, Japanese investment company Metaplanet revealed it had bought an additional 319 Bitcoin at an average price of around $82,770 per coin. With Metaplanet’s overall holdings now at 4,525 BTC, valued at $383.2 million, this acquisition confirms its position as the tenth-largest public corporate Bitcoin holder worldwide.
Treasury Liquidity Injections Boost Bitcoin’s Price
A major factor behind Bitcoin’s recent price surge appears to be the massive cash infusion from the US Treasury. Since February, the Treasury has injected over $500 billion into financial markets, drawing from the Treasury General Account (TGA) to support government operations after reaching the $36 trillion debt ceiling on January 2, 2025.
This liquidity explosion has increased the net Federal Reserve liquidity to $6.3 trillion. Financial analyst Lyn Alden claims that Bitcoin, acting as a “Global Liquidity Barometer,” has moved in line with global liquidity 83% of the time over any given 12-month period.
If debt ceiling negotiations extend beyond August, as some analysts predict, net liquidity might rise to a multi-year high of $6.6 trillion, potentially providing a strong tailwind for Bitcoin’s price.
Further supporting Bitcoin’s positive environment are recent changes in US fiscal policy. On April 14, Treasury yields fell, with the 2-year yield dropping 8 basis points to 3.89% and the 10-year yield falling 8.2 basis points to 4.40%.
These drops coincided with news of likely tariff exemptions on semiconductors, laptops, and smartphonesâintroduced to allow US businesses time to relocate manufacturing domestically.
Lower treasury yields typically reduce the appeal of fixed-income assets, potentially diverting capital flow toward risk-on assets like Bitcoin. However, President Trump emphasized that these exemptions are only temporary, creating some uncertainty that could lead to further price volatility.
Despite trading above $85,000, market participants remain cautiously optimistic about Bitcoin’s short-term future. Based on low futures premiums and neutral options skew indicators, traders are showing limited confidence for a move beyond $90,000 in the near future, even though institutional adoption continues to accelerate and macroeconomic factors appear supportive.
The price behavior of Bitcoin points to a possible short-term bullish trajectory. Technical analysis shows severe resistance between the current trend line and the 200-day moving average, with notable liquidity constraints at $88,000 and $92,000.
Should Bitcoin overcome these obstacles, a near-term trend approaching $90,000 seems reasonable. Some experts have set a more ambitious target of $137,000 by July-August 2025, citing a bullish pennant pattern on the daily chart.
However, Bitcoin must break and hold above its 200-day exponential moving average (EMA) and overcome resistance from the 50- and 100-day EMAs before validating this outlook.
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