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The weakening dollar, shifting U.S. macroeconomic indicators, and Ethereum’s changing on-chain dominance contributed to a volatile yet upward-trending April for digital assets.

Istanbul – As April drew to a close, Bitcoin’s resurgence dominated the crypto markets, with the asset trading above its 200-day simple moving average and confirming a breakout from its prior consolidation range. The rally coincided with U.S. trade developments, particularly a 90-day delay in the imposition of new tariffs, which renewed hopes for diplomatic negotiations between the United States and its trading partners.

According to crypto platform OKX TR’s latest Alpha Traders bulletin, Bitcoin’s rise to the $93,000–$94,000 range has refocused market attention on the outcome of these trade talks as a driver for further gains.

Trade reprieve offers short-term momentum

The bulletin notes that the tariff delay early in April played a role in helping Bitcoin overcome key resistance levels. While ongoing trade negotiations have been seen as a positive signal, their uncertain outcomes continue to cast a shadow over longer-term expectations.

Macroeconomic data from the U.S. also stirred investor attention. A growing spread, 36 basis points over the past three months—between 10-year and 2-year U.S. Treasury yields has prompted renewed concerns about economic slowdown, a signal historically associated with recessionary pressures. The report highlights that crypto assets have yet to experience the effects of an economic downturn fully, and this lack of precedent contributes to a cautious investor stance.

Ethereum faces pressure as Solana gains DEX ground

Gas fees on the Ethereum network dropped to 0.3 Gwei, marking a historic low. At the same time, Solana ranked just behind Ethereum in decentralized exchange (DEX) trading volume. Some analysts interpret this as a sign of Ethereum’s waning dominance in on-chain activity.

However, the OKX TR bulletin argues this view may be premature, citing the growing impact of Ethereum’s Layer-2 scaling solutions, which reduce mainnet fees and attract more transactions off-chain. While Solana’s growth is noteworthy, Ethereum still leads in terms of total value locked (TVL) and stablecoin market share—signs of a diversified rather than diminished ecosystem.

Dollar weakness may bolster risk assets

Analysts also highlighted the U.S. Dollar Index (DXY), which showed signs of softening during the same period that Bitcoin began its breakout. As is often the case, a weakening dollar can act as a tailwind for risk-on assets, including cryptocurrencies. The April Alpha Traders bulletin notes that increased demand for risk assets may have contributed to Bitcoin’s most recent push above $93,000, emphasizing the correlation between DXY trends and crypto market strength.

Trump-Fed tension adds uncertainty as VIX signals hidden risks

The relationship between Donald Trump’s administration and the Federal Reserve remains a key point of focus. Trump reiterated his view that the Fed should lower interest rates, but clarified he does not intend to remove Fed Chair Jerome Powell. The Fed, however, continues to hold steady, wary of inflation and mindful of central bank independence.

While looser monetary policy could boost appetite for risk assets in the near term, analysts caution that political interference could raise long-term credibility concerns. The bulletin also references movements in the VIX volatility index, noting that current readings may suggest underlying market fragility, even as Bitcoin prices climb. According to OKX TR, the disconnect between price action and volatility may indicate latent stress that investors have yet to price in fully.