$BTC

$ETH Bitcoin Surges Past $87,000, Analysts Urge Caution Amid Market Optimism

Bitcoin has crossed the $87,000 mark for the first time since April 2, 2025, currently trading at $87,325, up 2.4% over the past 24 hours.

This surge is being driven by renewed institutional interest, most notably a recent acquisition of 3,459 BTC by Strategy (formerly MicroStrategy), despite reporting $5.91 billion in unrealized losses on BTC holdings for Q1 2025. The move signals a strong long-term conviction in Bitcoin.

According to Dominick John of Kronos Research, the rally is also supported by rising global liquidity. The M2 money supply across major economies (U.S., Europe, Japan, China) hit $90.2 trillion between December and February.

Further strengthening the bullish sentiment, U.S. spot Bitcoin ETFs saw a net inflow of $15.8 million last week—indicating increased institutional confidence.

However, market analysts remain cautious. Peter Chung of Presto Research warns that uncertainties around U.S. trade tariffs and upcoming Federal Reserve decisions continue to cloud long-term outlooks. The FOMC meeting scheduled for May 6–7 will be closely watched, with the CME FedWatch Tool showing only a 12.4% probability of a 25-basis-point rate cut.

Maintaining investor momentum, according to John, will hinge on the Fed's stance on interest rates and broader macroeconomic clarity.

Meanwhile, other major cryptocurrencies showed mixed performance:#USChinaTensions #BTCRebound #SaylorBTCPurchase

Ethereum (ETH): +0.97% to $1,632

XRP: +1.38% to $2.11

Solana (SOL): -0.87% to $140.20