Global Cryptocurrency Markets Experience Sudden Surge in Value Amid Ongoing Economic Uncertainty

BTC Hits $87,000: Too Soon to Call a Bull Market, Say Experts

The world’s largest cryptocurrency, Bitcoin, has broken the $87,000 mark for the first time since April 2. Despite this remarkable surge, experts are cautioning that it may be premature to declare a bull market just yet.

According to data from The Block’s Bitcoin price page, the cryptocurrency has skyrocketed by more than 2.4% in the past day alone, reaching $87,325. This significant milestone is attributed to a slight increase in global liquidity and renewed interest from big investors. Dominick John, an expert at Kronos Research, has shed light on this phenomenon, stating that “Bitcoin’s rise above $87,000 is sustained by a slight increase in global liquidity, driven by the growing M2 money supply and renewed large investors noted by signals to boost its holdings, restricting its supply.”

This upward trajectory has not been limited to Bitcoin alone; other major cryptocurrencies have also seen significant gains. Ether surged 0.97% to $1,632, while XRP jumped 1.38% to $2.11. However, Solana dropped 0.87% to $140.2.

Despite these impressive gains, experts are urging caution, citing ongoing concerns about US tariffs and the potential impact on global markets. Peter Chung, head of research at Presto Research, warned that “it’s too soon to say we’re in the clear” as trade talks with key partners remain ongoing. Additionally, Chung highlighted the importance of a weak dollar index, high 10-year treasury yields, and other factors that should be taken into consideration.

A sustained bull market would require more than just a one-day spike; it demands consistent trends and reliable support. As such, experts are hesitant to declare a bull market at this stage, as there remains uncertainty around the potential impact of US tariffs on global markets.

The next Federal Open Market Committee meeting is scheduled for May 6 and 7, where we may gain further insight into the direction of interest rates. According to the CME FedWatch Tool, there is currently a 12.4% chance that the Fed will reduce rates by 0.25%. If this were to happen, it could provide much-needed relief for investors.

John from Kronos Research emphasized the significance of understanding President Trump’s trade tariffs in order to calm markets and boost investor confidence.

For now, Bitcoin enthusiasts should remain cautious and wait for a more sustained trend before declaring victory.

Source: https://bitcoinik.com/btc-hits-87000-too-soon-to-call-a-bull-market-say-experts/