Bitcoin Surpasses $87K Amidst Institutional Accumulation and Dollar Decline

Bitcoin has surged past $87K, boosted by institutional purchases and a weak dollar. MicroStrategy’s recent acquisition of over 6k BTC solidifies its position as the largest corporate holder. Market dynamics suggest potential upward movement towards $90k as risk appetite grows in the crypto sector.

Bitcoin (BTC) experienced a significant surge, rising 3.52% to an impressive $87,348.17 on Monday. This increase indicates a rebound past critical resistance levels, largely influenced by institutional investments and favourable macroeconomic conditions. Over the past week, Bitcoin has appreciated by 3.9%, marking a similar 3.91% increase month-on-month.

One driving factor behind Bitcoin’s ascent is MicroStrategy’s substantial acquisition of 6,556 BTC from April 14 to April 20, costing approximately $555.8 million, or an average of $84,785 per coin. This strategic purchase has elevated MicroStrategy’s total Bitcoin reserves to 538,200 BTC, valued around $46.8 billion. With these holdings, it now owns about 77% of the Bitcoin held by publicly traded firms, reinforcing its position as the largest corporate holder of the cryptocurrency.

The recent Bitcoin rally can also be attributed to the weakening U.S. dollar. The Dollar Index (DXY) fell to a three-year low of 98.00 amidst discussions regarding potential changes in leadership at the Federal Reserve. This political pressure has intensified speculation about interest rate cuts, thereby enhancing Bitcoin’s appeal as a safe-haven asset. Simultaneously, gold prices reached new heights above $3,400 per ounce, aligning Bitcoin’s emerging status as a hedge against value decline.

Market analysts suggest that Bitcoin could soon reach $90,000 due to a lack of significant resistance in that price category. If current momentum persists, Bitcoin may achieve new highs before any major profit-taking occurs. Additionally, the overall cryptocurrency market shows increased risk-taking, with smaller tokens outperforming Bitcoin, which currently holds a dominance of approximately 54%.