Bitcoin’s price has recently surged beyond $87,000, reflecting a continuation of bullish momentum in the cryptocurrency market.
This rally follows the Federal Reserve’s announcement to significantly slow its quantitative tightening (QT) program. Starting in April 2025, the Fed will reduce its monthly Treasury sales cap from $25 billion to $5 billion, signaling a shift in monetary policy that has positively impacted risk assets like Bitcoin.
The Federal Reserve’s decision to maintain interest rates within the 4.25%-4.5% range and project two rate cuts later in 2025 has further fueled investor confidence. Bitcoin’s trading volume has reached approximately $31.85 billion in the past 24 hours, with its market capitalization now standing at $1.73 trillion.
These figures underscore Bitcoin’s dominance and its role as a hedge against economic uncertainty. Market analysts attribute the price surge to a combination of factors, including institutional accumulation and renewed interest in Bitcoin-focused exchange-traded funds (ETFs).
For instance, MicroStrategy recently added 6,911 BTC to its holdings, amounting to a purchase of approximately $584.1 million. Additionally, net inflows into Bitcoin ETFs have reversed a five-week trend of outflows, further supporting the bullish sentiment.
The surge has also impacted the futures market, with open interest reaching a record $32 billion. While this indicates heightened market activity, it also raises the risk of volatility. Analysts caution that overleveraged positions could lead to sharp corrections if momentum falters.
From a technical perspective, Bitcoin has broken out of a two-month consolidation phase, with traders eyeing potential price targets between $90,000 and $95,000. Key support levels are identified at $86,822, and maintaining price action above this threshold could attract additional buying pressure.
Shogun Lin
