Bitcoin Appeal Returns: Where It Can Go and What's Fueling the Rally

Bitcoin and the cryptocurrency market in general are back in vogue after a deep correction phase experienced at the end of February. The most famous cryptocurrency has catapulted back above the $100,000 threshold , reaching its highest level since February, although it is still below the all-time high of $109,000 reached at the end of January, immediately after President Donald Trump took office.

Bitcoin on the rise with its sisters

The most famous cryptocurrency, Bitcoin , is trading this morning at $102,904, up 4.2% from the day before, for a market capitalization of $2.04 trillion. Since the beginning of the year, Bitcoin has maintained an increase of about 10%, but in the last month it has recovered 29% after the heavy correction that began at the end of February.

Other cryptocurrencies are also advancing, a symptom of a return of appeal for this asset class: Ether is up over 16% to $2,211, Solana is up over 8% to $162.59, Dogecoin is up 8.5% to $0.195, and Cardano is up 8.8% to $0.7609. XRP is also doing well (+5.3%) and Binance (+2.39%).

Trump's Softer Line and Powell's Caution

Trump 's softer line on trade has contributed to fueling the surge in cryptocurrencies and Bitcoin in particular. The US President yesterday, after announcing a "historic" agreement between the United States and the United Kingdom on trade , said he was convinced that an agreement could also be found with the EU.

But there is also monetary policy supporting cryptocurrencies: the FOMC decision, which left interest rates still unchanged, and Chairman Powell , who confirmed that there is no rush to cut rates , postponing a possible intervention towards July.

An “alternative” asset useful in a time of uncertainty

The uncertainty that characterizes the economic and financial scenario has been the main driver of the growth of Bitcoin, which has quickly established itself as an "alternative" asset to the dollar and the dollar area, which are discounting a pro-inflationary economic policy of the Trump administration and an increase in the US deficit and debt.

The President's Complicity With The Crypto Market

The crypto market is also supported by the favorable attitude that Trump , in his second term, has reserved towards this asset class, which he has supported since the election campaign, also favoring the approval and launch of ETFs and therefore an increase in the flows of this market. There is certainly still a lot to define at a regulatory level, to definitively align the crypto market to traditional finance and favor a further increase in trading volumes.

Where Bitcoin Can Go

The question is whether Bitcoin will be able to update its all-time high, reached at the end of January, and aim for other goals. In this regard, Simon Peters , crypto markets analyst at eToro, recalls that the threshold of 100 thousand dollars has so far represented a rather important resistance level, the approach and overcoming of which has pushed the price of the cryptocurrency back in recent months.

At present, the expert points out that the Cryptocurrency Fear and Greed Index , which measures current sentiment, is just above the neutral threshold. This indicates that the market is not yet overbought and therefore still has room for potential upside. In fact, the biggest sell-offs on Bitcoin occur when the prevailing sentiment is greed.

Additionally, institutional inflows into Bitcoin, as measured by spot ETFs, have been above average over the past week, signaling the confidence in cryptocurrency markets at this time.