Bitcoin price crosses $87,000 amid global liquidity boost and institutional momentum

Bitcoin price crosses $87,000 for the first time in weeks, signaling renewed optimism in the crypto market.

This surge reflects a potent mix of global liquidity expansion and increasing institutional interest. As of today, Bitcoin trades at $87,325, up 2.4% in the last 24 hours. This marks the first time it has touched this level since early April.

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Driving this surge is a combination of macroeconomic shifts. The M2 money supply across major economies hit $90.2 trillion, boosting liquidity. Investors are finding refuge in crypto as traditional markets wobble under geopolitical pressure, especially U.S. tariff tensions. Bitcoin previously slumped to $74,500 amid these fears but has now bounced back strongly.

Michael Saylor’s Strategy disclosed the purchase of 3,459 BTC, signaling faith in long-term BitcoinClick here for more Details strength. Despite recording unrealized Q1 losses, their aggressive acquisition strategy is fueling market confidence. Additionally, U.S. spot Bitcoin ETFs recorded $15.8 million in net inflows last week.

Institutional bets and ETF flows power Bitcoin price rally

Bitcoin’s latest rally has sparked debate over a potential bull cycle. While cautious optimism surrounds it, there’s growing belief this move is not just a blip. The asset outperformed traditional stock indices, including the S&P and Nasdaq, during April.

Dominick John of Kronos Research attributes the breakout to a global liquidity uptick and reduced Bitcoin availability. Strategy’s aggressive accumulation adds supply pressure, enhancing upward price momentum. Meanwhile, Michael Saylor emphasized Bitcoin’s resilience, stating it has “no counterparty risk… not even chaos.”

As investor interest ramps up, so does talk of policy impacts. The Federal Reserve’s upcoming meeting on May 6-7 could sway the momentum. If interest rates hold or drop, crypto assets like Bitcoin may benefit from continued capital inflows.

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Bitcoin price crosses $87,000, but is a bull market near?

Despite the positive signals, uncertainty lingers. Analysts note that unresolved trade negotiations and elevated U.S. treasury yields cast shadows on broader market sentiment.

Peter Chung of Presto Research warns that while Bitcoin held strong in April, it’s premature to declare a full recovery. Yet, outperforming tech giants and major indices suggests growing investor confidence in digital assets.

The CME FedWatch Tool places just a 12.4% chance of a rate cut at the next meeting. Investors eagerly await clarity. If the Fed remains dovish, Bitcoin could maintain upward momentum. Institutional players will likely keep driving the narrative.

For now, Bitcoin’s surge past $87,000 is a milestone. Whether it’s a trend or a temporary spike will depend on the next few policy moves and market shifts.