After Bitcoin, both the 2-year and 10-year US Treasury rates fell on April 14. (BTC) Closed its best performance weekly since the second of January. Bitcoin has gained 6.79% in the last week. But are there enough factors to sustain a price increase?
New York’s trading session saw the 10-year Treasury yield drop by 8.2 basis to 4.40 %, and the 2-year Treasury fell 8 basis to 3.88 %. This drop was due to the introduction of tariff exemptions for smartphones, computers and semiconductors. These were implemented to allow US firms time to shift production to domestic markets. US President Donald Trump stressed that these exemptions are temporary.
Source: Cointelegraph/TradingView Chart for US 10-year Treasury Bond Yields. Source: Cointelegraph/TradingView
On April 12, the tariff exemptions for Bitcoin were announced at the close of an upbeat week. BTC’s price rose 15% between April 9-13 after forming a new low for the year at $74,500.
A reduction in US Treasury yields may have a negative impact on Bitcoin. Low yields make fixed income assets less attractive, allowing capital to be invested in risky assets such as BTC. Even so, uncertainty about the future of BTC continues to be a factor. “temporary exemptions” Bitcoin is subject to price fluctuations due to ongoing tensions with China.
You can also call it a “inflation hedge,” Bitcoin still draws mixed reviews, but the recent insecurity over trade policies has increased inflation fears and improved BTC’s narrative about its store of values. Recent US inflation data, however, suggested that the trend was cooling. The Consumer Price Index for March 2025 showed a rate of inflation year over year of just 2.4%. This is down from the 2.8% recorded in February. It’s the lowest inflation rate since February 2023.
Related: Trade war vs record M2 money supply: 5 things to know in Bitcoin this week
Bitcoin Price Obstacles at $88K-$90K
Material Indicators Trading Resource noted that Bitcoin remained bullish above its weekly 50 moving average, and the open for quarter at $82,500. The strong close of the previous week implied that Bitcoin was less likely to revisit its weekly lows in the near future. This analysis added,
“Bitcoin bulls now face strong technical and liquidity-based resistance between the trend line and the 200-day MA. Expecting “Spofy” to move asks at $88k and $92k before they get filled.”
Likewise, Alphractal founder Joao Wedson suggested that Bitcoin may be nearing a bullish reversal, as the Perpetual-Spot Gap on Binance—a key indicator tracking the price difference between Bitcoin’s perpetual futures and spot markets, has been narrowing since late 2024.
Bitcoin Perpetual Spot Price Gap Chart. Source: X.com
Wedson recently posted a X message. highlighted that this shrinking gap, currently negative, signals fading bearish sentiment, with historical trends from 2020–2021 and 2024 showing that a positive gap often leads to a Bitcoin rally. Wedson pointed out that a shift to a positive difference could be a sign of regaining buyer momentum. However, he cautioned that such negative gaps persisted during the 2022–2023 bear market.
Related: Michael Saylor’s Strategy buys $285M Bitcoin amid market uncertainty
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Source: cointelegraph.com
