Bitcoin (BTC) surged past the $90,000 level on April 22, a level it hasn’t surpassed since March 5, 2025. Continued momentum even pushed BTC above $94,000 in the early hours of the trading session on Wednesday April 23rd. This surge was fueled by Trump’s articulation of the ongoing discussions about potential firing of Federal Reserve chair, Jerome Powell. 

However, James Toledano – the Chief Operating Officer (COO) at Unity Wallet, believes that Bitcoin’s recent surge might not last long. In a commentary shared with Blockchain News, Toledano cited that Bitcoin’s recent activity is not fueled by increased demand. 

Factors Driving the Recent Bitcoin Rally

According to Toledano, the recent surge in the price of Bitcoin can be attributed to different factors. Notably, institutional enthusiasm is at the forefront of the current rally. Bitcoin has managed to record huge ETF inflows since April 22 hence depicting the renewed institutional enthusiasm. 

Data on SosoValue shows that U.S spot Bitcoin ETFs recorded a total of $936.43 million on April 22. This is the largest daily ETF investment over the last 3 months. Yesterday (April 23), BTC recorded a total of $916.91 million in ETF inflows making it the second largest ETF inflow in the same period. BTC is also on a 4-day streak of ETF inflows. 

Besides institutional enthusiasm, Toledano also noted that the recent BTC rally is fueled by the “de-escalation by President Trump on tariffs.” Trump put a 90-day pause on tariffs to all countries, except China, on April 9. Additionally, positive developments between China and the U.S tariff negotiations have allowed the crypto market and Bitcoin to recover. 

Unity Wallet’s COO also highlighted that investors have turned to gold and Bitcoin as safe investment havens. In fact, gold hit a new all-time high after surging past $3,384 on April 21. “The weakening dollar and concerns around fiat currency stability could also be a factor,” Toledano wrote. 

Toledano Urges BTC Investors to be ‘Cautiously Optimistic’

With excitement building up amongst Bitcoin market participants, Toledano has warned about too much excitement. He cited a lack of increased demand to fuel the price moving forward. Hence the claims that the surge above $90,000 may not last long. 

“We shouldn’t get too excited and perhaps we should even be cautiously optimistic. Outside of ETFs, much of the Bitcoin activity is not being driven by increased demand which might mean that the surge is short-lived,” Toledano opined. 

As per the data by Coinmarketcap, Bitcoin is currently trading at $92,559.18. The crypto pioneer is down 1.05% on the day. This suggests that Toledano’s prediction of the rally above $90K being short-lived could actualize. Furthermore, the trading volume of BTC has dipped by 35.18% over the last 24 hours and currently sits at $38.3 billion. 

BTC as an Attractive Alternative to Traditional Investment Options

Despite warning against over excitement, the COO of Unity Wallet still views Bitcoin as an crucial asset for investment diversification. “For investors seeking diversification beyond the traditional markets, Bitcoin represents an attractive alternative in the current macroeconomic and geopolitical climate,” Toledano shared. 

He further added that the “digital gold” is experiencing renewed enthusiasm. However, this enthusiasm is not just speculative. Rather, it highlights the growing role of Bitcoin as a store of value and hedge against inflation. 

“With growing acceptance of Bitcoin as a strategic asset class and ETF demand accelerating, this isn’t merely a speculative surge. As long as macro conditions and institutional interest remain favorable, Bitcoin is quite well-positioned to hold these current levels,” he wrote. 

However, Toledano also highlighted the volatile nature of Bitcoin stating that “short-term corrections are likely.” Investors should thus expect fluctuations in the price of Bitcoin before another attempt to regain the $100,000 psychological mark.