Bitcoin Surges 97% to $97,000, Altcoins Rally 40% on Bullish Sentiment
2min read The crypto market experienced a significant surge on Friday, with Bitcoin reaching an impressive $97,000. This rally was accompanied by a rise in the cryptocurrency fear and greed index to 60, indicating a bullish sentiment among investors. The overall market capitalization of all cryptocurrencies jumped to $3.02 trillion, with analysts expressing optimism that this upward trend would continue.
Bitcoin's price surge can be attributed to several factors. Firstly, analysts have provided bullish predictions for Bitcoin, with Cathie Wood’s Ark Invest anticipating that the BTC price will reach $2.4 million by 2030. This represents a 2,375% increase from the current level and would bring the market cap of all coins to $50.4 trillion. Standard Chartered analysts also see the Bitcoin price heading to $200,000 either later this year or in 2025. Most analysts on X expect the coin to continue its bullish rally.
Secondly, weak economic numbers published by the US showed that the GDP contracted in the first quarter. The labor market and US consumer confidence also declined, raising the odds of a recession. These numbers suggest that the Federal Reserve may pivot by starting to cut interest rates as soon as the meeting in May. Additionally, there is speculation that Trump may decide to start negotiations with other countries, especially China. These events explain why the US stock market has bounced back, with the Dow Jones rising by 83 points on Thursday, while the Nasdaq 100 Index soared by 255 points.
Technical indicators also suggest that Bitcoin has more upside potential. It formed a bullish flag chart pattern before the current breakout, which is made up of a tall vertical line and a rectangular formation. Bitcoin price has also moved above the 50-day moving average. Notably, it narrowly failed to form a death cross pattern in April as the spread between the 200-day and 50-day moving averages narrowed. The last time this happened was in September last year, and then Bitcoin price surged by over 82% afterwards.
The ongoing Bitcoin price rally triggered a sharp increase among altcoins. Litecoin and Dogecoin prices have continued their rally, now over 40% above their lowest level in April this year. These coins have surged due to the increasing likelihood that the Securities and Exchange Commission (SEC) will approve spot ETFs. Canary Capital, Grayscale, and CoinShares have all applied for a spot Litecoin ETF, while Grayscale, Bitwise, 21Shares, and rex Shares have applied for a DOGE ETF. LTC and DOGE have high chances of being approved because they are proof-of-work coins, and the SEC does not view them as securities. It has no reason not to approve them since it approved spot Ethereum and Bitcoin ETFs last year.
The sonic price continued to rise as it gained market share in the decentralized exchange industry. Its total value locked has jumped to over $1.7 billion a few months after its launch. It has also attracted 121 DeFi developers because of its revenue-sharing model. DEX networks in Sonic handled over $3.47 billion in volume in the last 30 days, making it one of the top chains in the industry. Aerodrome Finance (AERO) price has also jumped as its volume soared since it is the biggest DEX network in the Base network.
