Bitcoin Surges 3.52% to $87,348.17, Reclaims Eighth-Largest Asset Spot

Bitcoin has reclaimed its position as the eighth-largest asset by market capitalization, surpassing the $87,000 mark. This resurgence comes after a period of volatility, with the cryptocurrency's price fluctuating significantly in recent weeks. The move signals growing bullish momentum, as institutional buying and macroeconomic tailwinds continue to drive demand for the digital asset.

The cryptocurrency's price has been on an upward trajectory, with a notable jump of 3.52% on Monday, reaching $87,348.17. This rebound has been fueled by a combination of factors, including increased institutional investment and a weakening U.S. dollar. The price of Bitcoin was last higher by more than 3% at $90,282.00, its highest level since March 7. On Monday, it rose another 3%. Bitcoin is off its April low now by about 21%.

The recent surge in Bitcoin's price has coincided with a sell-off in U.S. equities, as investors seek alternative assets amid market turbulence. The cryptocurrency has been decoupling from risk assets in recent weeks, with its 30-day correlation with the S&P 500 dropping to 0.65. This decoupling has been driven by a combination of factors, including increased institutional investment and a weakening U.S. dollar.

The recent strength in Bitcoin's price has been accompanied by a sharp increase in open interest, as traders bet on further gains. However, analysts have cautioned that the cryptocurrency's price may be vulnerable to a pullback, given the lack of significant catalysts such as Fed easing or tariff deals. Despite this, Bitcoin's long-term holders remain steadfast, and buying from Strategy is picking up as the cryptocurrency's liquidity declines. These factors can support further resiliency amid equity and fixed income volatility.

The $88,000 level marks key resistance for the cryptocurrency. If cleared successfully, it would be a positive near-term development for Bitcoin, putting its next resistance near $95,900. The recent surge in Bitcoin's price has been driven by a combination of factors, including increased institutional investment and a weakening U.S. dollar. The cryptocurrency's price has been on an upward trajectory, with a notable jump of 3.52% on Monday, reaching $87,348.17. This rebound has been fueled by a combination of factors, including increased institutional buying and macroeconomic tailwinds.