After plummeting to $76,000 and undergoing two months of consolidation, Bitcoin's price seems to be making a strong comeback. Recently, it reached its highest level in 60 days, $105,000. If momentum continues over the next few weeks, we may witness a new ATH, exceeding the January peak of $109,350.
One of the major catalysts behind this renewed rally is the US political and economic context, which has been heavily influenced by Donald Trump's controversial decisions since his return to the White House. His economic policies, often seen as populist, have added to market uncertainty.
These include massive tax cuts, an overhaul of public spending and escalated trade tensions. Such measures have undermined investor and consumer confidence in the US dollar. Faced with persistent inflation and ballooning public debt, many investors are seeking protection and are increasingly turning to Bitcoin as a credible alternative.
Bitcoin's limited supply of 21 million coins and its decentralized nature make it a particularly attractive asset for preserving value during times of economic turbulence. In periods of instability, cryptocurrencies become more than just speculative assets: they serve as a hedge against the erosion of purchasing power. The greater the uncertainty, the more capital migrates to Bitcoin, pushing its price to new heights.
If this trend continues, Trump's economic policy concerns may deepen mistrust in traditional currencies. There is every chance that Bitcoin will soon surpass its previous ATH.
Beyond this threshold, the market could enter a new euphoric phase, with medium-term projections suggesting that prices could move well beyond current records.
Adding further momentum to Bitcoin price surge was the announcement of a trade agreement between the United States and China, involving substantial reductions in tariffs. This development improved global market sentiment, leading investors to seek riskier assets like cryptocurrencies. Additionally, the Federal Reserve's decision to maintain interest rates between 4.25% and 4.5% has encouraged investors to explore alternative assets like cryptocurrencies, further bolstering demand for Bitcoin.
The resolution of this tension brought relief to the market, with major indices such as the S&P 500 and DJI rebounding strongly. If institutional conflicts re-emerge, Wall Street could once again become a powerful catalyst for crypto-assets.
In any case, long-term holders (LTHs) have reason to rejoice, as they see their assets regaining value after a significant decline.