Main Takeaways:-
- Bitcoin’s price surpassed the $87,000 mark on Sunday for the first time since April 2.
- One expert said that Bitcoin’s rise is driven by renewed interest from big investors, noted by the latest purchases as part of the strategy.
Bitcoin price surpassed $87,000 for the first time in weeks as it aligns with increasing global liquidity and renewed interest from big investors amid ongoing worries about US tariffs.
The world’s largest cryptocurrency has increased by more than 2.4% in the last 24 hours to trade at $87,325. Significantly, the first occurrence Bitcoin has surpassed the $87,000 level since April 2, according to The Block’s Bitcoin price page.
At the start of the year, Bitcoin experienced a setback with the broader cryptocurrency market when U.S. President Donald Trump began to introduce broad tax rules on goods from trade partners, affecting global stock prices and crypto investors, who looked for security, less volatile assets. Bitcoin dropped to around $74,500 at the beginning of this month.
An expert at Kronos Research, Dominick John, said that “Bitcoin’s rise above $87,000 is being sustained by a slight increase in global liquidity, motivated by the growing M2 money supply and renewed large investors noted by signals to boost its holdings, restricting its supply.”
According to MacroMicro data, the whole M2 monetary supply throughout the U.S., Europe, Japan, and China consistently grew from December to February, hitting $90.2 trillion.
At the same time, Michael Saylor’s Plan, previously called MicroStrategy, revealed its purchase of 3,459 BTC at the beginning of this month in the face of market-wide instability, while revealing unrealised losses of $5.91 billion from its BTC holdings in the initial quarter because of Bitcoin’s poor performance.
On the social media platform X, Saylor repeated that he trusts Bitcoin, saying: “Bitcoin has no one to depend on or be affected by. No company. No country. No lender. No other currency. No rival. Not even chaos.”
U.S. spot Bitcoin exchange-traded funds also observed an overall positive cash flow of $15.8 million last week, which may also indicate higher institutional trust in Bitcoin in comparison to February and the beginning of March.
In parallel with Bitcoin, other major cryptocurrencies experienced a rise. Ether surged 0.97% to $1,632, and XRP surged 1.38% to $2.11. Still, Solana dropped 0.87% to $140.2.
What to Expect in the Next Bull Run
The head of research, Peter Chung, at Presto Research said, “It’s too soon to say we are in the clear, as talks with important trade partners are still happening.” “The ongoing concern is clear from the still-high 10-year treasury and yields, a weak dollar index, and other factors.”
Still, Chung said it is worth noting that Bitcoin stayed strong in April and did better than major stock indexes like the S&P, Nasdaq, and big U.S. tech companies known as the “Magnificent 7.”
John of Kronos said that for the Bitcoin surge to turn into a sustained bull market, the U.S. Federal Reserve must maintain lower interest rates to maintain capital inflows.
The next Federal Open Market Committee meeting is on May 6 and 7. The CME FedWatch Tool shows a 12.4% chance that the Fed will reduce rates by 0.25% at the meeting.
John said that understanding Trump’s trade tariffs is important for calming the overall markets and boosting investor confidence.
Read also:- Solana Pump Is Coming Towards $190: Signals Turn Bullish
Disclaimer: We at Bitcoinik.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice, and viewers should consult their financial advisors before investing.
