Bitcoin Reclaims $90,000: Is 'Digital Gold' Heading To $100,000 Next?
Bitcoin surged past $90,000, marking a 2.5% daily gain, as it gains recognition as a safe-haven asset amid a weakening U.S. dollar. Analysts suggest that Bitcoin's rally, which coincides with gold's rise, could lead to institutional inflows, potentially pushing its price to between $150,000 and $200,000. However, some experts maintain a cautious outlook, noting resistance levels and potential overbought conditions. The crypto market's capitalization reflects recovering sentiment, while rumors regarding the Federal Reserve Chairman's resignation may also influence market dynamics.
Bitcoin BTC/USD on Tuesday surged past the $90,000 mark for a 2.5% daily gain, as experts point to its growing perception as a safe-haven asset akin to “digital gold” amid a weakening U.S. dollar and market volatility.
What Happened: The rally, which saw Bitcoin hit a high of $90,480, coincides with gold reaching new highs and U.S. equities sliding to tariff-era lows, prompting analysts to reevaluate the cryptocurrency's role in portfolio diversification.
Speaking with Benzinga, Tracy Jin, COO of MEXC, emphasized Bitcoin's resilience, noting that its tandem rally with gold signals a shift in investor perception.
"Bitcoin's ability to post gains is reshaping investor perception," Jin said, highlighting its potential decoupling from risk-on assets.
She suggested that persistent strength could drive institutional inflows in Q2, potentially pushing Bitcoin to all-time highs between $150,000 and $200,000, provided it holds support above $86,000-$87,000.
Katie Stockton, Founder of Fairlead Strategies, offered a more cautious outlook, maintaining a short-term neutral stance on Bitcoin despite its relief rally.
"Bitcoin is extending its relief rally, clearing its 50-day MA," Stockton told Benzinga, but pointed to resistance between $88,200 and $88,800.
She warned that the monthly stochastics' overbought downturn suggests the rally may be counter-trend, with support at $73,800 if momentum falters.
Alex Kuptsikevich, chief market analyst at FxPro, in a note sent to Benzinga, underscored Bitcoin's technical strength, noting its test of the 200-day moving average.
"A breakout above this level could lead to acceleration," he said, adding that the crypto market's $2.76 trillion capitalization reflects recovering sentiment, with the sentiment index rising to 47, a high not seen since late March.
Also Read: Bitcoin’s Dual Role Could Propel It To $200,000: Standard Chartered
Ethereum ETH/USD, meanwhile, traded up 1.5% at $1,650, hovering near key support at $1,550, according to Stockton, who remains intermediate- and long-term bearish on the asset.
Other major altcoins, including XRP XRP/USD, BNB BNB/USD, Solana SOL/USD, and Dogecoin DOGE/USD, saw modest 1% gains over the past 24 hours.
Liquidation data showed $322.2 million in positions wiped out, with $184.55 million in shorts and $137.65 million in longs, reflecting heightened market volatility.
Jin also flagged unconfirmed rumors of Federal Reserve Chairman Jerome Powell's possible resignation as a potential driver of Bitcoin and gold's strength, alongside dollar weakness.
She urged investors to monitor upcoming economic data and speeches from FOMC members and ECB President Christine Lagarde, which could sway broader market sentiment.
What’s Next: As Bitcoin consolidates above $90,000, analysts remain divided on its near-term trajectory but agree that its evolving narrative as a hedge against inflation and uncertainty could redefine its place in global finance.
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