Bitcoin continued its bullish climb this week, briefly crossing $94,000 on Wednesday and pushing the total crypto market cap above the $3 trillion mark for the first time in over a month. The rally appears to be fueled by a combination of institutional inflows, easing geopolitical concerns, and favorable macro commentary from U.S. officials.
Trade Tensions Ease, Fed Stability Signals Calm
Markets reacted positively to comments from President Donald Trump and Treasury Secretary Scott Bessent suggesting a more conciliatory approach to trade negotiations with China. Trump also dismissed speculation that he would remove Federal Reserve Chair Jerome Powell, signaling a degree of stability in U.S. monetary policy—a move that likely reassured risk-on investors.
Bitcoin Leads the Charge, Altcoins Follow
Bitcoin is now up 12% over the past seven days, outperforming traditional equity benchmarks like the S&P 500 and Nasdaq. Ethereum climbed past $1,800, while Solana hovered around $150. The GMCI 30, a broad-based crypto index, jumped 7%, and total crypto derivatives open interest surged past $124 billion.
An estimated $554 million short squeeze further accelerated Bitcoin’s gains. Meanwhile, one Bitcoin-focused ETF attracted $936 million in daily inflows—one of the largest on record—signaling continued interest from institutional investors.
Big Money Moves In
In a sign of growing institutional participation, Cantor Fitzgerald CEO Brandon Lutnick announced a $3 billion Bitcoin investment fund backed by major players like SoftBank and Tether. The strategy echoes the playbook of MicroStrategy, turning BTC into a long-term treasury asset.
Proceed with Caution
Despite the excitement, technical indicators are flashing caution. Bitcoin is trading in overbought territory, and some analysts warn that maintaining levels above $90,000 will require sustained buying volume and stable funding conditions.
Market watchers suggest the rally could extend if diplomatic and macroeconomic trends continue in a favorable direction. However, with inflation data and U.S.-China talks back in the spotlight, volatility remains a constant risk.
Bottom Line: The momentum is strong, but so is uncertainty. Traders may consider watching key support levels closely and avoid chasing rallies without confirmation.
This article is for informational purposes only and does not constitute investment advice.
