Bitcoin inched up 1.2% to $109,457.90 Monday, maintaining a cautious recovery following a sharp retreat from record highs last week. The cryptocurrency’s modest rebound reflects continued support from favorable regulatory moves and expanding institutional adoption.
Last Thursday, Bitcoin surged to an all-time peak near $112,000 before plunging to as low as $107,000 on Friday as investors locked in profits. Whale trades also played a role in the recent volatility.
IG analysts noted, “The minimal resistance encountered at the previous record high of $109,576 underscores exceptionally strong upward momentum.” They added that profit-taking was less than half of what was seen when Bitcoin first hit $100,000 in December, signaling sustained investor confidence.
Regulatory advances have injected fresh optimism into the crypto market. Last week, the U.S. Senate progressed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, while Hong Kong enacted a landmark stablecoin licensing framework. These parallel initiatives highlight a global push toward comprehensive stablecoin regulation.
In addition, major U.S. banks are reportedly in preliminary talks to issue a joint stablecoin, aiming to compete with crypto industry innovations, according to the Wall Street Journal.
With Wall Street sentiment shifting positively, technical analysts predict Bitcoin’s bullish trajectory will persist, albeit with a possible short-term correction to support levels near $102,000-$102,500 due to current high valuations and market exuberance.
However, skepticism remains among some policymakers. Minneapolis Federal Reserve President Neel Kashkari stated on Bloomberg TV Monday that he views cryptocurrencies primarily as speculative instruments and remains unconvinced about their practical use cases.
Altcoins largely followed Bitcoin’s lead Tuesday. Ethereum gained 2.1% to $2,563.52, XRP climbed 1% to $2.3440, while Solana, Cardano, and Polygon rose by 1.9%, 2.6%, and 1.5%, respectively. Meme tokens also saw modest gains, with Dogecoin up 2.5% and $TRUMP rising 0.4%.
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