Bitcoin prices crossed the $87,000 threshold on Sunday, indicating that it is the first time it has reached this level since April 2nd. The world’s largest cryptocurrency currently trades at around $87,325, reflecting a 2.4% increase over the past 24 hours.
Analysts say the gathering stems from a revival of institutional interests highlighted by the recent acquisition of 3,459 BTC by a strategy previously known as MicroStrategy. Despite reporting an unrealized loss of $59.1 billion to BTC holdings in the first quarter, the strategy’s actions suggest a new commitment to Bitcoin amid the uncertainty of the market.
Dominick John, an analyst at Kronos Research, said the rally was driven by an increase in global liquidity driven by the expansion of M2 money supply, which reached $90.2 trillion between December and February, across the US, Europe, Japan and China.
A positive net flow of $15.8 million to funds traded on US spot Bitcoin exchanges last week indicates an increase in institutional trust in crypto.
Bitcoin has shown resilience, but analysts warn that it is too early to declare a new bull market. Peter Chung, research director at Presto Research, emphasized that continuing negotiations on US tariffs still contributed to market tensions. He said that clarity of these issues is essential to stabilizing the broader market.
The CME FedWatch tool currently forecasts a 12.4% chance of a 25 base point rate reduction, so the Federal Open Market Committee meeting on May 6th and 7th will be closely monitored. John added that maintaining capital inflows will depend on the US Federal Reserve, which maintains lower interest rates.
In addition to Bitcoin, other major cryptocurrencies have experienced upward momentum, with ether increasing by 0.97% to $1,632 and XRP increasing by 1.38% to $2.11. However, Solana fell 0.87% to trade at $140.2.