TL;DR

Bitcoin surpassed $87,000 for the first time since early April, driven by rising global liquidity and renewed institutional interest. 
The expanding M2 money supply across the U.S., Europe, Japan, and China has played a major role.
Furthermore, Strategy’s (formerly MicroStrategy) recent acquisition of 3,459 BTC highlights growing trust in BTC as a store of value during market uncertainty.

Bitcoin made a strong comeback this weekend by breaking the $87,000 barrier, reaching $87,325 late on Sunday. This is its highest level since April 2, amid a global economic backdrop that, rather than creating fear, seems to be favoring decentralized assets like BTC. Analysts point to two main factors behind the rally: increasing global liquidity and renewed institutional appetite for the leading cryptocurrency.

Institutions Reinforce Their Commitment To BTC

One of the key players behind the surge is Strategy, formerly known as MicroStrategy, which disclosed the purchase of 3,459 BTC despite reporting unrealized losses in the first quarter. Executive Chairman Michael Saylor continues to champion Bitcoin’s superiority over other assets, emphasizing its independence from governments, currencies, cultures, or markets.

Liquidity expansion has also become evident: according to MacroMicro data, the combined M2 money supply of the U.S., Europe, Japan, and China reached $90.2 trillion by the end of February. This means more capital is in circulation and likely seeking refuge in assets like BTC. In addition, U.S.-based spot Bitcoin ETFs registered net positive flows of $15.8 million last week, a strong signal of growing institutional confidence.

Currently, the price of BTC is at $86,958.83, up 3.49% over the past 24 hours.

Bullish Outlook, With Caution

While many investors are already dreaming of a new bull run, some experts like Peter Chung from “Presto Research” prefer a more cautious stance. Ongoing trade tensions, especially those fueled by Donald Trump’s tariff policies, continue to generate uncertainty. Nevertheless, the key point is that Bitcoin held its ground in April, outperforming major stock indices such as the S&P 500, the Nasdaq, and the so-called “Magnificent 7” tech giants.

For this upward trend to evolve into a sustained bull cycle, it’s crucial that the Federal Reserve maintains or even lowers interest rates. The next FOMC meeting is scheduled for May 6 and 7, and the market currently sees a 12.4% chance of a 25 basis point rate cut. Meanwhile, the macroeconomic environment seems to be aligning with the pro-Bitcoin narrative: declining trust in governments and a growing appetite for decentralized alternatives.

---

Filed under: News - @ April 21, 2025 12:28 pm