Analysis of the Recent Surge in Bitcoin and Ethereum Prices

Bitcoin has surged to $91,000 and Ethereum to $1,700, driven by renewed institutional interest, political pressure on the Fed to lower rates, and a weakening US dollar. Institutional inflows into Bitcoin ETFs totalled $381.3 million, while whales are investing in Ethereum, helping boost confidence in the crypto market.

Bitcoin and Ethereum are currently experiencing significant price recoveries, marking notable increases after prolonged periods of stagnation. Bitcoin has surged to a seven-week high of $91,000, up approximately 22% from its recent low of $74,400. Similarly, Ethereum has rebounded, trading above $1,700 after a 5.5% increase within 24 hours.

The resurgence of Bitcoin is largely attributed to renewed interest from institutional investors. Recent data indicates that U.S.-based Bitcoin exchange-traded funds (ETFs) have reported their largest daily inflow, amounting to $381.3 million. ARK’s Bitcoin ETF attracted $116 million, followed closely by Fidelity’s fund with $87 million, reinforcing institutional confidence in Bitcoin’s trajectory.

Political influences are also contributing factors to the crypto price surge. U.S. President Donald Trump is advocating for a reduction in Federal Reserve interest rates, which typically drives investors towards alternative assets such as Bitcoin and Ethereum. Speculation regarding potential changes in the Fed’s leadership further adds uncertainty to traditional markets, prompting investors to explore cryptocurrencies.

Additionally, the declining strength of the U.S. dollar is playing a pivotal role in the rise of crypto assets. The U.S. Dollar Index (DXY) has recently fallen to its lowest levels since February 2022, hovering around 98.77. A weaker dollar often leads to heightened interest in cryptocurrencies, particularly during periods of increased liquidity throughout global financial systems.

Currently, Bitcoin’s trading price stands at $90,859, reflecting a 4% increase and a market capitalisation nearing $1.8 trillion. However, crypto analyst Ali Martinez warns that potential resistance zones exist between $95,600 and $98,290, which may pose challenges for upward movement. Should Bitcoin successfully navigate these barriers, it could open the possibility of reaching $100,000.

Conversely, Ethereum is trading at approximately $1,695, which includes a 5.5% incline over the last day. Analysts note significant purchases made by two large investors, colloquially known as whales, who acquired 4,500 ETH for $7.36 million. This action signifies robust investor confidence in Ethereum, with some projections suggesting a future price target of $10,000.