Bitcoin (BTC) has broken above the $87,000 level for the first time in more than two weeks, driven by increased global liquidity and renewed institutional appetite.
Bitcoin Surpasses $87,000 on Global Liquidity Surge, But Analysts Say Bull Run Is Early
But analysts caution that it is too early to say a new bull market has begun as macroeconomic uncertainties continue to weigh on sentiment.
Bitcoin was trading at $87,525, up more than 2.4% in the past 24 hours. The move marked a sharp recovery from earlier this month, when BTC fell to $74,500 following market jitters sparked by U.S. President Donald Trump’s aggressive tariff proposals.
Liquidity and Institutions Drive Demand
Kronos Research analyst Dominick John attributed the recent surge to the increase in global M2 money supply and institutional accumulation, particularly by Michael Saylor, who recently announced that he purchased 3,459 BTC.
“Bitcoin’s rise above $87,000, the increase in global liquidity… and renewed institutional interest are tightening the available supply,” John said, citing data showing that global M2 supply in the US, Europe, Japan and China reached $90.2 trillion between December and February.
Strategy, which has continued to defend Bitcoin despite reporting $5.91 billion in unrealized losses on its BTC holdings in Q1, has remained publicly bullish. “Bitcoin has no counterparty risk… Not even chaos,” Saylor wrote in a piece on X.
Meanwhile, US spot Bitcoin ETFs recorded net inflows of $15.8 million last week, indicating growing confidence among institutional players compared to the cautious sentiment seen in February and early March.
Other cryptocurrencies followed Bitcoin’s lead, albeit with mixed results. Ethereum (ETH) rose 0.97% to $1,656, while XRP climbed 1.38% to $2.13. However, Solana (SOL) fell 0.87% to $140.20.
Despite the rally, analysts remain cautious. Ongoing U.S. trade talks remain a major source of uncertainty, said Peter Chung, research director at Presto Research.
*This is not investment advice.
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