In a Nutshell
- The major cryptocurrency, Bitcoin, has breached the $95,000 mark for the first time since February, surging by 2% over the past 24 hours.
- Last month, Bitcoin experienced a drop in value below $75,000 due to President Trump's planned "reciprocal" trade tariffs.
- Stocks, on the other hand, have been steady with minor fluctuations, but saw a rally earlier in the week.
Dive into the Scene ✅
Cryptocurrency Bitcoin Hits New Monthly High of $95,000, While Stocks Maintain Steady Course
Bitcoin stole the spotlight Friday morning as its price soared above $95,000 per coin. The leading cryptocurrency, according to data from CoinGecko, was trading at $95,354, after experiencing a 13% rise in the past seven days.
The bullish momentum didn't stop there. Bitcoin climbed as high as $95,563 earlier Friday, reaching a level not seen since February 24.
Analysts attribute Bitcoin's latest push to a combo of institutional interest, favorable macroeconomic conditions, and robust on-chain activity. Among them is GSR Research Analyst Carlos Guzman, who noted that "crypto's behavior the last few days has been different to stocks." Guzman added that Bitcoin investors, capitalizing on the low tariff news, are jumping back in as they perceive Bitcoin as a durable store-of-value asset.
The rise in Bitcoin's price is even more impressive given that it occurred while the stock market and other "risk-on" assets are playing a recovery game after being hit hard by economic uncertainties.
Since Monday, investors have funneled $2.6 billion into Bitcoin ETFs, as shown by Farside Investors data. Shorts betting on Bitcoin to fall in value have been caught in a tight spot due to the crypto market's surge, with over $300 million in positions liquidated in the past day. Of that, nearly $78 million have been Bitcoin short positions.
Diversifying the crypto scene, Solana, Dogecoin, and Ethereum have all seen decent gains over the past week. Solana is now trading at $152, while Dogecoin hovers above $0.19. Ethereum, the second-biggest coin, is now priced at $1,800.
Edited by Andrew Hayward
Daily Debrief Newsletter 📀
Factors Behind Bitcoin's Surge ⚙️
- Institutional Attendance: Institutional investment is a key driver for Bitcoin's upside as more global portfolios allocate to the cryptocurrency[2].
- Macroeconomic Adjustments: Lower interest rates and a weaker dollar increase investor interest in cryptocurrencies[4].
- On-Chain Demand: The re-entry of one-year inactive Bitcoin supply into circulation indicates renewed accumulation[3].
- Confidence Building: Michael Saylor's MicroStrategy continues acquiring Bitcoin, reinforcing market trust among retail and institutional traders[3].
Relationship With Traditional Markets 🌟
- Decoupling from Stocks: Bitcoin has recently detached from equities as concerns over economic stability and global trade tensions weigh on stocks[1].
- Potential Hedging: Investors are increasingly viewing Bitcoin as a hedge against currency devaluation, especially during periods of monetary easing[4].
Compared to Other Cryptocurrencies 🚀
While Bitcoin often dictates the direction of altcoins, other popular cryptocurrencies like Ethereum, Solana, and Dogecoin have distinct driving factors:
| Cryptocurrency | Primary Price Influences ||---------------|------------------------------------------------------------------|| Ethereum | DeFi adoption, ETH ETF prospects, network upgrade timelines || Solana | Blockchain throughput, meme-driven speculation, institutional validators || Dogecoin | Social media trends, endorsements, retail sentiment |
Short-Term Catalysts ⏰
- $90,000 Support: Bitcoin's consolidation above this level indicates underlying strength for further gains[3].
- Crypto Legislation: Clarification on crypto-specific legislation could reduce risks for smaller tokens.
- The cryptocurrency Bitcoin has surpassed $95,000 for the first time since February, marking a 2% increase over the past 24 hours.
- Last month, Bitcoin experienced a drop in value below $75,000 due to President Trump's planned "reciprocal" trade tariffs.
- Stocks have been steady with minor fluctuations, but saw a rally earlier in the week.
- Bitcoin, the leading cryptocurrency, was trading at $95,354 on Friday, after a 13% rise in the past seven days.
- Analysts attribute Bitcoin's latest push to a combo of institutional interest, favorable macroeconomic conditions, and robust on-chain activity.
- Since Monday, investors have funneled $2.6 billion into Bitcoin ETFs.
- The rise in Bitcoin's price is even more impressive given that it occurred while the stock market and other "risk-on" assets are playing a recovery game after being hit hard by economic uncertainties.
- Diversifying the crypto scene, Solana, Dogecoin, and Ethereum have all seen decent gains over the past week.
- Institutional investment is a key driver for Bitcoin's upside as more global portfolios allocate to the cryptocurrency.
- Lower interest rates and a weaker dollar increase investor interest in cryptocurrencies, including Bitcoin.
