Bitcoin Rebounds to $85,000 Amid Treasury Liquidity Injection and Tariff Relief

After bouncing back from last week's decline to $74,500, Bitcoin holds steady above the $85,000 level.

Bitcoin price is holding above the $85,000 level after bouncing back from last week’s decline to $74,500.

The biggest cryptocurrency in the world BTC/USD shows weekly performance with about 6.79% increase over the previous week, hitting the highest since January 2025. A number of macroeconomic events, including temporary tariff exemptions announced by the Trump administration and Treasury liquidity injections, appear to be underpinning BTC’s recent price action.

Top 12 companies made their first Bitcoin acquisitions during Q1, increasing the total count of public companies holding Bitcoin to 79. Among the new entrants, Hong Kong construction company Ming Shing, via its subsidiary Lead Benefit, became the biggest first-time buyer with a total of 833 BTC—500 BTC in January followed by an additional 333 BTC in February. Among other companies joining the ranks of corporate Bitcoin holders was video platform Rumble, which disclosed a purchase of 188 BTC in March.

notably, Japanese investment company Metaplanet revealed on April 14 that it had acquired an additional 319 Bitcoin at an average price of about $82,770 per coin. With this acquisition, Metaplanet’s total holdings amount to 4,525 BTC, valued at $383.2 million, placing it among the top ten largest public corporate Bitcoin holders globally.

The massive cash injection from the US Treasury is a major macroeconomic driver behind Bitcoin’s price. Commencing operations after reaching the $36 trillion debt ceiling on January 2, 2025, the Treasury has been drawing from the Treasury General Account (TGA) to support government functions and injecting over $500 billion into financial markets since February.

This liquidity explosion, which is known to have a high correlation with Bitcoin’s price movements, has increased the net Federal Reserve liquidity to $6.3 trillion. Acting as a “Global Liquidity Barometer,” Bitcoin has moved in sync with global liquidity 83% of the time over any given 12-month period, according to financial analyst Lyn Alden.

Should the debt ceiling negotiations persist beyond August, as some analysts predict, the net liquidity could rise further to a multi-year high of $6.6 trillion, thus providing a strong positive tailwind for Bitcoin.

The price behavior of Bitcoin is indicating a possible short-term optimistic scenario. BTC recovered 15% to $86,100 during April 9–13, having reached yearly lows at $74,500. According to trading resource material indicators, Bitcoin remained bullish above its 50-weekly moving average and the quarter’s open at above $82,500, suggesting less chance of returning to previous weekly lows.

With notable liquidity barriers at $88,000 and $92,000, the technical perspective shows strong opposition between the current trend line and the 200-day moving average. If Bitcoin manages to clear these hurdles, a near-term price target of $90,000 appears plausible.

Pointing to a positive pennant pattern on the daily chart, some experts predict a more ambitious price target of $137,000 by July-August 2025. However, for this view to be supported, Bitcoin needs to break and maintain itself above its 200-day exponential moving average (EMA) and overcome the resistance from the 50- and 100-day EMAs.

Recent changes in U.S. budgetary policy are also creating a favorable climate for Bitcoin. On April 14, Treasury yields decreased; the 2-year yield went down by 8 basis points to 3.89%, and the 10-year yield decreased by 8.2 basis points to 4.40%. These declines came as part of news regarding potential tariff exemptions on semiconductors, laptops, and smartphones—introduced to allow U.S. businesses time to shift manufacturing back to the country.

Lower treasury yields usually decrease the attractiveness of fixed-income assets, potentially leading to capital outflows and a shift towards risk-on assets like Bitcoin. Still, President Trump stated that these exclusions are temporary, and there is some uncertainty arising from this situation, which might cause further price volatility.

As Bitcoin stays above $85,000, market players remain cautiously optimistic about its short-term future. According to low futures premiums and neutral options skew indicators, traders appear to have limited confidence in a move beyond $90,000 in the short term, even though institutional adoption continues to increase and macroeconomic factors seem supportive.