Bitcoin traders target $90K as apparent tariff exemptions ease US Treasury yields

The 2-year and 10-year US Treasury yields dipped on Monday, April 14, after Bitcoin (BTC) closed its best weekly performance since the second week of January. Bitcoin gained 6.79% over the past week, but are enough factors aligned to support continued price upside?

The 10-year treasury yield declined by 8.2 basis points to 4.40% during the New York trading session, while the 2-year treasury saw an 8 basis point slip to 3.88%. The drop in yields occurred on the back of possible tariff exemptions on smartphones, computers, and semiconductors, which were introduced to give US companies time to move production domestically. However, US President Donald Trump emphasized these exemptions were temporary in nature.

US 10-year treasury bond yields chart. Source: Cointelegraph/TradingView

The tariff exemptions announced on April 12 came at the end of a bullish week for Bitcoin. After forming new yearly lows at $74,500, BTC price jumped 15% to $86,100 between April 9-13.

Easing US treasury yields could be a double-edged sword for Bitcoin. Lower yields reduce the appeal for fixed-income assets, improving capital injection into risk-on assets like BTC. Still, the uncertainty of “temporary exemptions” and the ongoing trade war with China keeps Bitcoin susceptible to further price volatility.

As an “inflation hedge,” Bitcoin continues to draw mixed opinions, but recent uncertainty over trade policies increases inflation fears, improving BTC’s store of value narrative. Yet, recent US inflation data suggested a cooling trend, as the Consumer Price Index (CPI) for March 2025 indicated a year-over-year inflation rate of 2.4%, down from 2.8% in February, marking the lowest since February 2023, which could be indirectly bearish for Bitcoin in the short term.

Related: Trade war vs record M2 money supply: 5 things to know in Bitcoin this week

Trading resource Material Indicators noted that Bitcoin retained a bullish position above its 50-weekly moving average and quarterly open at $82,500. A strong weekly close implied a higher possibility that Bitcoin is less likely to re-visit its previous weekly lows anytime soon. The analysis added,

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

In a recent X post, Wedson 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 noted that a flip to a positive gap could indicate returning 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

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.