Bitcoin experienced a notable rally, reaching a high of $88,500, driven by increased spot market activity. Despite this surge, concerns over potential geopolitical tensions and a looming tariff war could limit further price increases. The Trump administration's recent developments on tariffs have contributed to market optimism, with several countries either rolling back their tariffs or indicating they will avoid aggressive tariff responses. Over the past 12 hours, total market liquidations reached $145 million, significantly impacted by Bitcoin short positions. Furthermore, the transition from bearish to bullish market conditions appears to be supported by strong spot buy volumes and a return of the Coinbase Pro premium. Notable companies like GameStop and Strategy have also shown intentions to increase their Bitcoin holdings, suggesting a shift in market sentiment. In the short term, Bitcoin's performance will likely hinge on sustained buy volume and the impact of the geopolitical landscape.

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