Bitcoin has skyrocketed over 4% in the last 24 hours, exceeding $84,000, according to the Cryptocurrency Data Provider Coingecko.
The largest cryptocurrency by market capitalization touched $85,000 a day earlier before pulling back. The rally coincided with a broader recovery in risky assets as markets responded proactively to the US government’s apparent success in avoiding macroeconomic stability and shutdowns.
According to Strahinja Savic, head of data analytics at Crypto Consultancy FRNT Financial, the rise of Bitcoin reflects new confidence in financial markets. “The stability of some updated macros suggests that Bitcoin and crypto are recovering along with other risky assets,” Savic said in a telegram message. “The lower than expected inflation numbers and perceived mitigation of geopolitical risks contribute to alleviating macro concerns and providing a tailwind for Bitcoin.”
He also said that some Bitcoin investors are driving the recovery by having the opportunity to “buy dip.”
Bitcoin’s profit came after Senate minority leader Chuck Schumer expressed support for Republican measures to fund the government. Government shutdowns could add more uncertainty to markets that are already addressing concerns about stagflation, an economic scenario where growth slows while high inflation is occurring.
Risk assets have been under pressure for weeks due to the fear of a trade war caused by US President Donald Trump’s tariffs on their major trading partners. Additional macroeconomic concerns, including government controversial cost-cutting measures, are also examining investor sentiment.
The University of Michigan Consumer Sentiment Index has fallen to its lowest level since 2022, indicating a decline in confidence in the US economy. The survey also found that inflation expectations rose to the highest level in more than two years. Joe Dipasquale, CEO of Crypto Asset Manager Bitbull Capital, said the data is driving investors to Bitcoin as a hedge against economic uncertainty. He also said institutional trust remains strong as BlackRock resumes its Bitcoin purchases and invests $25 million.
Despite the current bullish momentum, Dipascuare warned that volatility remains a concern, with potentially significant corrections warned first.
*This is not an investment recommendation.
