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Bitcoin Surges Amid Positive Market Sentiment and Weak Dollar

Bitcoin climbed above $88,000 amid positive market sentiment and a weak dollar, recovering from previous lows. The crypto market capitalisation reached $2.76 trillion, finding support at $2.45 trillion. Wallets holding over 1,000 BTC are at a four-month high, suggesting bullish trends. Expert predictions indicate potential for Bitcoin to surpass $100,000, driven by US Treasury strategies.

On Monday, Bitcoin experienced a significant rise, reaching nearly one-month highs above $88,000, despite a downturn in equity indices. Over the past week, the overall crypto market surged approximately 2%, with most of this increase occurring at the week’s start. Currently, the market capitalisation stands at $2.76 trillion, having reached the upper limit of its April trading range. Importantly, the market has sustained support at the critical $2.45 trillion level, previously a resistance zone last year which spurred the rally beginning in November.

Market sentiment is improving, with the pertinent index climbing to 47, which aligns with the levels recorded on 27 March. This indicates a transition from a fear-driven environment into a neutral state. It is noteworthy that historical trends suggest such transitions can lead to sustained market strength following any pullbacks, hinting at a potentially optimistic outlook.

Additionally, amidst a weakening dollar and gold achieving a new all-time high, Bitcoin tested its 200-day moving average after a period of fluctuation around the 50-day average. A successful breakout above the 200-day mark could catalyse further acceleration of prices. According to Bitget Research, the diminishing strength of the dollar and increasing correlation with gold is positioning Bitcoin as a compelling option for those seeking inflation hedges and safe-haven assets.

Further insights from Glassnode reveal a notable increase in the number of wallets containing over 1,000 BTC, which have reached their highest levels in four months. This resurgence mirrors trends seen during November-December 2024, a time of market rallying post Donald Trump’s election as US President.

Arthur Hayes, co-founder of BitMEX, expressed the view that this moment represents possibly the final opportunity to acquire Bitcoin below $100,000. He emphasises that the US Treasury’s bond buyback strategy will likely serve as a crucial impetus for market liquidity and growth.

Alexander, a seasoned analyst with over a decade of experience in currency markets, the global economy, and commodities such as gold and oil, offers his expert commentary through various socio-political and economic publications and platforms.

Marcus Collins is a prominent investigative journalist who has spent the last 15 years uncovering corruption and social injustices. Raised in Atlanta, he attended Morehouse College, where he cultivated his passion for storytelling and advocacy. His work has appeared in leading publications and has led to significant policy changes. Known for his tenacity and deep ethical standards, Marcus continues to inspire upcoming journalists through workshops and mentorship programs across the country.

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