Bitcoin's price crossed the $87,000 threshold on Sunday, marking the first time it has reached this level since April 2.
Bitcoin's price crossed the $87,000 threshold on Sunday, marking the first time it has reached this level since April 2. The world's largest cryptocurrency is currently trading at approximately $87,325, reflecting a 2.4% increase in the past 24 hours.
Analysts attribute this rally to a resurgence in institutional interest, particularly highlighted by the recent acquisition of 3,459 BTC by Strategy, formerly known as MicroStrategy. Despite reporting unrealized losses of $5.91 billion on its BTC holdings in the first quarter, Strategy's actions suggest a renewed commitment to Bitcoin amid market uncertainty.
Dominick John, an analyst at Kronos Research, noted that the rally is also fueled by an uptick in global liquidity, driven by an expanding M2 money supply that reached $90.2 trillion across the U.S., Europe, Japan, and China from December to February.
The positive net flow of $15.8 million into U.S. spot Bitcoin exchange-traded funds last week further indicates growing institutional confidence in the crypto.
While Bitcoin has shown resilience, analysts caution that it is too early to declare a new bull market. Peter Chung, head of research at Presto Research, emphasized that ongoing negotiations regarding U.S. tariffs still contribute to market nervousness. He stated that clarity on these matters is essential for stabilizing broader markets.
The upcoming Federal Open Market Committee meeting on May 6 and 7 will be closely watched, as the CME FedWatch Tool currently predicts a 12.4% chance of a 25-basis-point rate cut. John added that sustaining capital inflows will depend on the U.S. Federal Reserve maintaining lower interest rates.
In addition to Bitcoin, other major cryptocurrencies experienced upward momentum, with Ether rising 0.97% to $1,632 and XRP gaining 1.38% to $2.11. However, Solana saw a decline of 0.87%, trading at $140.2.
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