Bitcoin’s price recently surged past $86K, driven by new interest as a national reserve asset. It anticipates testing resistance levels at $88K-$90K. The development of strategic reserves in Sweden and the Czech Republic aligns with broader institutional interest. The options market shows bullish activity, while macroeconomic sentiment improves, indicating a stable outlook for Bitcoin. Key support levels for Bitcoin are noted at $85,000 and potential highs above $86,500.
Bitcoin (BTC/USD) recently surged over 2% to trade at $86,328, marking an 8.1% increase over the past week. This uptick is significant as it reflects a growing separation from equity markets and heightened interest in Bitcoin as a sovereign reserve asset. The token has also risen 1.5% this past month, indicating a bullish trend.
Traders are closely watching Bitcoin’s movement as it approaches its recent high of $86,500. A breakout above this threshold could pave the way for Bitcoin to test resistance levels between $88,000 and $90,000. Currently, Bitcoin’s dominance in the market stands at 64%, the highest since January 2021, suggesting strong performance in comparison to other cryptocurrency assets.
Recent political developments in Sweden have prompted discussions about implementing a national Bitcoin reserve strategy. Members of the Swedish Parliament are advocating for the government to consider holding Bitcoin alongside traditional reserves, such as gold and fiat currency. This initiative follows the U.S.’s own exploration of similar measures, particularly in light of a recent executive order by former President Trump concerning confiscated Bitcoin.
In addition, the Czech Republic is contemplating allocating approximately $7 billion in Bitcoin for diversifying its foreign reserves. Such moves are indicative of a larger trend suggesting that Bitcoin is emerging as a strategic asset for national reserves, which may have long-term implications for its valuation and market dynamics.
The options market is aligning with this bullish sentiment. The most sought-after Bitcoin options contract on Deribit is currently the $100,000 call option, boasting a remarkable open interest nearing $1.2 billion. Positive skews in contract pricing reflect renewed demand for upward price movement, showing a marked reversal from previous market anxieties.
Furthermore, geopolitical and macroeconomic factors are contributing to the favourable environment for Bitcoin. Although near-term market catalysts are tied to White House decisions on tariffs and Federal Reserve leadership, the broader macro sentiment has improved, as indicated by Treasury Secretary Scott Bessent’s comments regarding the stability of the U.S. bond market and the dollar’s enduring status as the global reserve currency.
For Bitcoin to maintain its recent momentum, it is crucial to hold above the $85,000 support level. A confirmed breakthrough above the $86,500 mark could lead Bitcoin towards new highs, possibly reaching $88,000 or even $91,000. Conversely, support is also established at $81,800 and $79,000, where the bullish market structure would remain intact if these thresholds hold. With increasing institutional interest and potential sovereign adoption, Bitcoin appears set for significant developments in its market cycle, albeit with inherent volatility risks.
