- Bitcoin has climbed over 7% week-on-week to US$94,306, with the Fear and Greed Index moving into Neutral Territory as market sentiment shifts to more optimistic territory.
- Bitfinex analysts highlight Bitcoin’s “remarkable strength” compared to traditional investments, though caution the coming weeks will determine whether new all-time highs are achievable.
- The Federal Reserve has eased crypto regulations, no longer requiring banks to notify regulators before engaging in crypto activities, which analysts say has encouraged Wall Street engagement.
- Michael Saylor’s Strategy (formerly MicroStrategy) continues aggressive Bitcoin accumulation, which some analysts warn could tighten supply and drive up prices to levels only accessible to wealthy institutions.
Bitcoin (BTC) is up over 7% week-on-week, trading at US$94,306 (AU$147,602), while the overall market continues to see huge gains amid a shift towards a more optimistic sentiment. The Fear and Greed Index has moved into neutral territory, as confidence appears to be returning.
And analysts at Bitfinex wrote in a recent report that Bitcoin remains “remarkably strong”, holding up pretty well against more traditional investments such as stocks.
Bitcoin continues to showcase impressive resilience, climbing over 10 percent in the past week and outperforming traditional risk assets like the S&P 500.
BitfinexMarkets have adopted a more positive outlook amid expectations of a potential respite from Trump’s tariff chaos, which had previously sparked significant volatility spikes.
The analysts cautioned against an overly optimistic view, though, stating that it’s important to see if Bitcoin can keep its recent gains and that the coming weeks “will be key to determining whether a new leg higher toward all-time highs is achievable, or if another pullback is in store”.
Related: Yes, Please: Arizona Passes First State-Level Bitcoin Bill to Establish Strategic Reserve
Fed Changes Stance on Crypto Policy
On the macroeconomic side, US trade policies, particularly new tariffs, are starting to strain the economy despite low unemployment, the analysts noted. Falling wage satisfaction, weak business investment, and cautious corporate sentiment suggest growing concerns about job security and a potential slowdown later this year.
Meanwhile, the Federal Reserve has changed prior guidance requiring banks to notify regulators before engaging in crypto-asset or dollar token activities. Instead, it will oversee such activities through its regular supervisory process.
This shift aims to align with evolving risks while supporting innovation in the banking sector.
Analysts at 10X Research said that the easing of these “restrictive crypto rules encouraged Wall Street engagement, pushing prices higher”, adding:
Public companies acquiring over 30,000 BTC monthly tightened supply, contributing to the upward price momentum.
10X ResearchSaylor’s Strategy Could Drive Up BTC Prices
Then there is also Michael Saylor and his Bitcoin-purchasing company, Strategy (formerly MicroStrategy) which has just made another large BTC acquisition.
Author, analyst and self-proclaimed Bitcoin wizard, Adam Livingston, has cautioned that Strategy’s aggressive accumulation of Bitcoin could make it much more expensive and difficult for others – both individuals and institutions – to buy or borrow Bitcoin in the future.
Read more: Strategy’s ‘Synthetic Halving’ of Bitcoin Could Send Prices Soaring, Analyst Adam Livingston Warns
His argument is that by hoarding such a large share of the new supply, Strategy risks driving up prices and tightening liquidity so much that access to Bitcoin could become a luxury reserved for only the wealthiest players, like nation-states or large corporations.
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