Crypto markets gain steam: Bitcoin's rise above $87k fuels market optimism

Crypto markets are gaining momentum as the flagship cryptocurrency Bitcoin (BTC) has bounced back strongly, crossing $87,000 after dipping to $74,500 earlier this month. At around 11:10 AM on Monday, the world’s largest cryptocurrency was quoted trading at approximately $87,640.84, up 2.96 per cent. The 24-hour trading volume for the flagship currency stood at $25.65 billion, while its market capitalisation was approximately $1.73 trillion, according to data from CoinMarketCap.

 

The bounce in Bitcoin, Riya Sehgal, research analyst, Delta Exchange, said, came as hedge funds aggressively sold the dollar against major currencies, driving the DXY to 98.5, its lowest since April 2022 and down 10 per cent in three months.  "A weaker dollar typically fuels risk-taking, and crypto markets are clearly benefiting. Also, the move is backed by growing liquidity, steady ETF inflows, and continued institutional buying, like Strategy’s recent 3,459 BTC purchase," said Sehgal. 

 

As long as Bitcoin holds above $77K, the trend, according to Sehgal, looks healthy, and a clear break above $85,000 could mark the start of a fresh rally. That said, macro uncertainties have not gone away.

  US-China trade talks, sticky treasury yields, and the US Fed’s next move, Sehgal believes, are all on the market’s radar. The May FOMC meeting will be key, with only a 12 per cent chance of a rate cut right now.  

Meanwhile, Vikram Subburaj, CEO, Giottus Crypto Platform, said that this is a key week for Bitcoin to show its strength among risk-on assets. Its dominance within crypto has risen to 64 per cent with no sign of reversal yet. "If Bitcoin breaks and holds above $88,000, it would indicate the beginning of its next rally," said Subburaj.

 

Ethereum (ETH), which is the world’s second-largest cryptocurrency by market capitalisation, is holding its ground above $1,500, though it’s still facing resistance near $1,680. Last seen, it was quoted trading at around $1,639.32, up 1.64 per cent.

 

Ethereum’s holding its ground above $1,500, though it’s still facing resistance near $1,680.

 

Meanwhile, the popular cryptocurrencies were also trading higher, with Binance Coin (BNB) traded higher by nearly 1.75 per cent, Ripple (XRP) trading with gains of 1.56 per cent, and Solana (SOL) up by 0.13 per cent.

 

Meanwhile, the US dollar-linked stablecoin Tether traded at $1, up 0.04 per cent.