The cryptocurrency market experienced a strong rally driven primarily by Bitcoin (BTC), which surged over 3% to surpass $105,000, nearing its all-time high. This upward momentum is underpinned by significant inflows into U.S. spot Bitcoin ETFs, including BlackRock's iShares Bitcoin Trust (IBIT), Fidelity's FBTC, and Ark Invest's ARKB, collectively attracting hundreds of millions of dollars from institutional investors.
Alongside rising institutional demand, the U.S. Senate advanced the GENIUS Act, a bipartisan bill aimed at establishing federal regulation for stablecoins. The legislation mandates 1:1 dollar reserves for issuers managing over $10 billion in stablecoin circulation and is seen as a critical step toward regulatory clarity, bolstering confidence in the sector.
Market data reveals an increase in Bitcoin futures open interest by 7% to $73 billion, with $45 million in short positions liquidated recently, signaling growing buyer strength. Technical indicators, such as an approaching "golden cross" (50-day moving average converging with the 200-day), highlight positive technical momentum for Bitcoin that often precedes prolonged uptrends.
Additional macroeconomic factors supporting the rally include a recent downgrade of the U.S. credit rating and ongoing monetary policy easing in China, which encourage investors to seek digital assets as alternative stores of value. Moreover, JPMorgan's announcement to allow clients to buy Bitcoin, despite not holding custody, further legitimizes institutional participation.
Other leading altcoins also benefited, with Ethereum (ETH) rising over 7% to $2,544, Solana (SOL) up nearly 5%, and notable gains in Aave (AAVE), Curve DAO (CRV), and Virtuals Protocol (VIRTUAL). Overall, the sustained inflows, improved regulatory outlook, and positive market sentiment indicate a potential establishment of new baseline price levels rather than a short-lived bubble. However, some caution persists due to the possibility of corrections amid elevated optimism.
