Bitcoin stabilises around $94,500, with a market cap of $2.97 trillion. The market is neutral, and while BTC shows bullish signs, Ethereum faces resistance at $1,800. Bitcoin options favour a bullish trend, while forecasts predict potential highs for Bitcoin and stablecoins in the coming years. The US Federal Reserve eases restrictions on banks handling digital assets.
The crypto markets have taken a breather, with Bitcoin stabilising around $94,500. This price point marks a return to the consolidation levels noted back in February, just before a significant downturn. The overall market capitalisation is sitting at about $2.97 trillion since late last week. It seems that, while there’s some recovery, the market is hesitant to break past key moving averages, indicating a neutral sentiment among traders; many appear to prefer upward movement with longer stop-loss orders.
Bitcoin’s technical outlook appears bullish, as BTCUSD is now trading above both its 50- and 200-day moving averages. These indicators have shown an upward trend, and last week’s consolidation above the averages seems to have solidified a bullish momentum. Meanwhile, Ethereum continues facing resistance at the 50-day moving average, currently around $1,800. The price has struggled here for six consecutive days, and historical trends suggest that ETH tends to gain significantly once it breaks through this point.
QCP Capital has observed that the Bitcoin options arena is now heavily influenced by call options around a $95,000 strike price set for late April and May—this points to a strong appetite for risk among investors. Additionally, recent comments from former President Trump aimed to reassure investors regarding Federal Reserve Chairman Powell’s position, highlighting intentions to reduce tariffs on Chinese goods.
Outlook on Bitcoin remains optimistic, with ARK Invest projecting that Bitcoin could soar to $2.4 million by the end of 2030. This bullish projection stems from the anticipated adoption of Bitcoin by institutions and sovereign wealth funds. More conservative estimates suggest BTC might reach $1.2 million in a baseline scenario, while a bearish scenario predicts a figure around $500,000. Their analysis leans heavily on calculations around the Total Addressable Market and Bitcoin’s penetration rate.
Looking ahead, the year 2025 is touted as pivotal for institutional adoption of blockchain technologies, led by the rise of stablecoins. Citigroup forecasts that stablecoin capitalisation could potentially hit $1.6 trillion in a base case by 2030 and soar to $3.7 trillion in an optimistic outlook.
In a significant move, the US Federal Reserve has decided to lift restrictions that previously hindered banks from engaging with digital assets. This means banks will no longer need to notify the regulator about their dealings or plans involving cryptocurrencies, paving the way for a more integrated financial landscape.
Lastly, Alexander has over a decade of experience analysing the currency market, and macroeconomic factors including gold and oil. His commentary appears in various leading socio-political and economic publications, interviews on radio and television, and he regularly publishes his own research.
