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Bitcoin continued its upward march on Monday, climbing 1.4% to $104,815.5 by 02:51 GMT, after briefly breaching $107,000 earlier in the session. The token is now trading at its highest level since January 2025, just shy of its all-time high of $109,228, as a confluence of macroeconomic tailwinds and investor sentiment propels demand.
Bitcoin Surge Fueled by Global Developments
The cryptocurrency has now gained over 11% this month, underpinned by several key drivers:
- De-escalating trade tensions between the United States and China have helped soothe markets and lifted appetite for riskier assets, including crypto.
- Subdued U.S. inflation prints from last week reinforced expectations of a Federal Reserve rate cut later this year, boosting alternative assets as the U.S. dollar weakens.
- Moody’s downgrade of the U.S. sovereign credit rating, citing unsustainable fiscal spending, has stirred concerns over long-term economic stability — encouraging a pivot toward decentralized assets.
Institutional Demand, Regulatory Optimism Accelerate Adoption
Momentum was further amplified by signs of growing institutional involvement. Strategy Inc. (NASDAQ:MSTR) disclosed last week that it had purchased 13,390 BTC for $1.34 billion, signaling increasing acceptance of Bitcoin as a strategic corporate reserve asset.
Meanwhile, Coinbase Global (NASDAQ:COIN) — a key U.S. crypto exchange — made headlines as the first digital asset company to join the S&P 500 index, bolstering mainstream investor confidence in the sector.
In Washington, sentiment was lifted by favorable regulatory signals under SEC Chair Paul Atkins, whose more crypto-tolerant stance has improved the industry’s near-term outlook. Analysts see this environment as paving the way for greater capital inflows and product innovation in the space.
Bitcoin’s Role as a Hedge Gains Renewed Traction
With geopolitical tensions, debt sustainability concerns, and policy shifts converging, Bitcoin is once again being viewed as a store of value during periods of financial uncertainty. Its rally has echoed trends seen in gold, which also rebounded this week.
“Bitcoin is benefitting from a perfect storm of institutional confidence, macro tailwinds, and weakening trust in fiat,” said one analyst.
Altcoins Mixed Amid Bitcoin’s Outperformance
The broader crypto market remained mixed as Bitcoin dominance edged higher:
- Ethereum (ETH) slipped 3.2% to $2,401.45, extending a recent correction.
- XRP rose 0.7% to $2.3754, while Solana and Cardano traded flat.
- Polygon (MATIC) added 0.6%.
- Dogecoin (DOGE) declined 3%, while meme coin $TRUMP gained 0.7%.
Despite the altcoin slowdown, analysts suggest that a breakout above $109,000 for Bitcoin could catalyze another wave of risk-on activity across the broader crypto space.
