Bitcoin surged above $80,000 today amid growing institutional demand that boosted the cryptocurrency market. Ethereum, BNB, XRP and other cryptocurrencies also marked a significant increase in their value and demand in the market. Investors have ignored the US sanctions against Iran and taking fresh position in the crypto trading because of their low prices.
The world’s largest cryptocurrency traded 2.5% higher at $80,785. The latest advance followed a powerful rally that lifted bitcoin more than 20% within three days.
Strong Market Momentum
A short squeeze also supported the rally. It erased more than $4 billion in bearish cryptocurrency positions, according to CNBC.
Meanwhile, investor appetite for risk assets improved after the US Treasury announced plans to double purchases of longer-dated government bonds.
The move temporarily lowered bond yields. However, concerns about inflation and rising government debt also increased demand for scarce assets such as bitcoin.
Institutional inflows provided further support. US spot bitcoin exchange-traded funds attracted $1.92 billion last week, marking their strongest weekly performance since October.
Analysts Assess Bitcoin’s Outlook
However, analysts remain cautious about the rally’s sustainability. Bitcoin faced pressure for much of the period following October’s previous cycle high.
BTIG noted that a similar rally in January 2023 initially lost momentum before bitcoin found support near its 200-day moving average.
Nevertheless, Fundstrat expects stronger momentum this time. The firm cited ETF inflows, higher trading activity and rising stablecoin issuance as positive signals.
If the positive sentiment continued in the crypto market, Bitcoin and altcoins can gain more value in the days ahead.
