Bitcoin (BTC) continues its upward trajectory, reaching a new high of $94,500. This marks a significant increase of nearly 6% over the past 24 hours, contributing to the total cryptocurrency market capitalization surpassing $3 trillion .
Key Drivers Behind the Surge
Improved U.S.-China Trade Relations: Recent statements from President Trump and Treasury Secretary Scott Bessent suggest a potential easing of the 145% tariffs imposed on China. This development has boosted investor confidence, leading to increased risk appetite and a rally in the crypto markets .
Regulatory Developments: The appointment of Paul Atkins as the new SEC Chairman signals a more favorable regulatory environment for cryptocurrencies. Atkins’ pro-crypto stance is expected to expedite ETF approvals and provide clearer guidelines, encouraging institutional investment .
Decoupling from Traditional Markets: Bitcoin is increasingly exhibiting behavior similar to gold, acting as a hedge against traditional market volatility. This decoupling from tech stocks and other risk assets underscores its growing appeal as a store of value .
Technical Outlook
Bitcoin’s recent performance indicates strong bullish momentum. Technical indicators, such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), support the potential for continued upward movement. Analysts suggest that maintaining the current trading volume and positive sentiment could propel BTC towards the $98,000–$100,000 range in the near term .
Market Sentiment:
The Fear & Greed Index currently stands at 47, reflecting a neutral market sentiment. However, the sustained rally and positive macroeconomic indicators suggest a shift towards increased investor optimism .
