Bitcoin (BTC-USD, Financial) is back in the spotlight, breaking through the $94,000 mark in early Wednesday trading—its highest level since February. This fresh rally isn't just about crypto hype—it's being fueled by a rare convergence of macro tailwinds: a falling dollar, Trump easing off tariff threats, and clear signals that Federal Reserve Chair Jerome Powell isn't going anywhere. That triple shot of relief has reignited risk appetite across markets, and Bitcoin is stealing the show.

After weeks of market jitters following Trump's April 2 announcement of sweeping tariffs—what he called “Liberation Day”—the mood has flipped. The S&P 500 (SPY, Financial) had dropped nearly 7% since then, but Trump's recent tone shift has traders breathing easier. S&P futures are up more than 2%, and digital assets are ripping. Crypto traders are calling it a “Bitcoin season,” and if BTC can break past the upper $90,000s, a fresh all-time high may not be far off.

Still, it's not all blue skies. Bitcoin dominance is spiking—great if you're holding BTC, but it's a warning sign for altcoins. If Bitcoin stumbles, the rest of the market could unravel fast. As analysts at B2BINPAY put it, “In this scenario, caution is warranted—it's like walking on thin ice.” Translation: momentum is strong, but so is fragility. Investors chasing this rally would be wise to keep one eye on the charts—and one finger near the exit.