- Bitcoin is just 3.7% shy of $100,000.
- Institutional inflows drive upward momentum.
- On-chain metrics show strong bullish sentiment.
The crypto market has regained bullish momentum, adding nearly $300 billion in market cap over the past two weeks. Bitcoin is leading the charge, trading above $96,500 and edging closer to the $100,000 mark, just 3.7% away. The world’s top cryptocurrency temporarily surpassed Google in market capitalization, becoming the fifth most valuable financial instrument in the world.
Altcoins such as Ethereum and Solana have also demonstrated resilience. Ethereum is holding firm at above $1,800, with Solana remaining firm above $150, bolstered by strong buying interest.
Economic Shifts Fueling Optimism
A weakening U.S. economic outlook has fueled investor interest in risk-on assets like crypto. A 0.3% contraction in U.S. GDP and a drop in consumer confidence have raised recession fears. At the same time, the probability of a rate cut in the June FOMC meeting has increased to 60%, boosting investor sentiment.
The next April employment report is likely to provide more detail to the macroeconomic landscape and may inject near-term volatility into financial markets.
Institutional Purchasing and On-Chain Strength
Institutional investors have materially increased crypto exposure. Bitcoin spot ETFs recorded $4.2 billion in inflows, while Ethereum ETFs reversed early April’s outflows with $250 million in new investments. Solana futures open interest also climbed 5%, nearing its all-time high.
Bitcoin whales have accumulated over 43,100 BTC worth around $4 billion, contributing to reduced market volatility and signalling market maturity.
On-chain metrics show that 86.9% of Bitcoin in circulation is currently in profit, often a precursor to strong rallies. Momentum and first-time buyers are accumulating, while profit takers remain quiet, indicating bullish control.
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Source: https://thenewscrypto.com/crypto-market-turns-bullish-as-bitcoin-nears-100k/