Bitcoin’s price surged above $90,000 on Thursday, driven by a pioneering decision from a U.S. state to acquire the cryptocurrency for its reserves and increasing speculation about a crypto-friendly Federal Reserve chair.
The digital asset climbed 4.32% in the last 24 hours to reach $90,966.1, signaling renewed investor confidence. The market capitalization now stands at $1.819.32 billion.
The notable catalyst was the state of Texas announcing a $5 million purchase of Bitcoin for its reserves. This marks the first such acquisition by a U.S. state, interpreted by many as a significant institutional validation.
Adding to the positive sentiment are expectations that Kevin Hassett, widely seen as pro-cryptocurrency, could be nominated as the next Federal Reserve chairman. Such an appointment could pave the way for more favorable monetary policies, including potential interest rate cuts.
Bitcoin’s daily trading volume reached $70.49 billion, though this was 3.72% lower than its 30-day average. The price has consistently traded above its 7-day Simple Moving Average (SMA-7) of $87,128.05, reinforcing short-term bullish momentum.
On-chain metrics show a 2.44% increase in activity from large holders, often referred to as “whales.” Daily transactions have exceeded 500,000.
Positive funding rates in perpetual contracts, standing at 0.01%, suggest a dominance of long positions in the derivatives market. Open interest in CME futures has also reached record levels.
Social media sentiment remains largely optimistic, with approximately 65% of verified posts reflecting a positive outlook on Bitcoin. Globally, Bolivia is reportedly making progress in integrating cryptocurrencies and stablecoins.
Despite the recent gains, Bitcoin’s current price is still down 4.99% annually from $95,746.98. It remains 27.89% below its all-time high of $126,149.02.
Technical analysis indicators, including the Relative Strength Index (RSI) at around 65 and a positive Moving Average Convergence Divergence (MACD) histogram, suggest sustained upward momentum without being overbought.
Bitcoin currently accounts for 52% of the total cryptocurrency market capitalization, underscoring its dominant position. Approximately 19.7 million BTC are in circulation out of a total supply of 21 million.
The Total Value Locked in second-layer solutions like the Lightning Network exceeds $300 million, enhancing Bitcoin’s scalability. When compared to Ethereum, Bitcoin exhibits greater stability, and its inverse correlation with the U.S. Dollar Index (DXY) is measured at -0.6, similar to gold.
While inflows into Bitcoin Exchange-Traded Funds (ETFs) and a 13% rise in perpetual contract open interest contribute to optimism, analyst Tom Lee has reportedly adjusted his prediction from $250,000 to a more conservative target. News of a $36 million hack on the Upbit exchange had minimal impact on Bitcoin’s price, as the incident primarily affected Solana.