Dubai, UAE: The cryptocurrency markets saw a solid week, with a total market capitalization surge of $300 billion, as Bitcoin broke through key resistance levels and continued its upward trajectory. Bitcoin gained 10%, pushing its price past the $90,000 mark, a level last seen in early March 2025. As of today, Bitcoin is nearing $95,000, marking a significant rebound.

Simon Peters, Crypto Analyst at eToro, commented on the recent surge: "Despite the ongoing economic uncertainty, including the geopolitical tensions between the US and China and concerns around potential changes in leadership at the Federal Reserve, Bitcoin’s strong performance has been impressive. While traditional markets remain under pressure, Bitcoin has shown resilience, and this could signal a shift in how institutional and retail investors view the asset. It’s clear that Bitcoin is emerging as a potential safe-haven asset, much like gold."

The resurgence of Bitcoin comes despite broader economic uncertainty, including potential tariff increases between the US and China, ongoing tensions around President Trump’s trade policies, and speculations regarding the future of Federal Reserve Chairman Jerome Powell. While traditional markets remain under pressure, Bitcoin's recent growth suggests a decoupling from its typical correlation with US markets, particularly tech stocks. In fact, Bitcoin has shown a growing correlation with gold, a traditional safe-haven asset, which could point to its increasing role as a hedge against economic uncertainty.

Institutional Interest Grows with Significant Spot Bitcoin ETF Inflows
The growing institutional interest in Bitcoin has been underscored by massive inflows into spot Bitcoin exchange-traded funds (ETFs). In the past week, the 7th and 8th largest days for net inflows into these ETFs were recorded, with inflows of $917 million and $912.7 million, respectively. This uptick in institutional participation indicates a robust demand for Bitcoin as a financial asset.

Simon Peters added: "With gold at record highs, many investors appear to be turning to Bitcoin as an alternative store of value or a digital equivalent of the precious metal, often referred to as ‘digital gold.’ The growing institutional interest, combined with Bitcoin’s increasing correlation with gold, suggests that investors are increasingly viewing Bitcoin as a hedge against economic instability."

Economic Data and Fed Policy to Drive Markets in the Week Ahead
Looking ahead, market participants are closely watching upcoming US economic data, including the Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred inflation measure. This will be a key indicator for the Fed’s interest rate decisions in its upcoming meeting on May 7th. Additionally, other data points such as Advanced GDP, Manufacturing PMI, and Non-Farm Payroll figures will provide further insights into the health of the US economy.

Biggest Movers in Crypto Markets
This week’s crypto market saw several standout performers:

  • $TRUMP: The meme coin associated with former US President Donald Trump rallied by 70% after it was announced that Trump would host a private dinner for the top 220 holders of the $TRUMP token at his Washington DC private club on May 22nd. Despite the recent rally, the price of $TRUMP remains well below its January 2025 high of $77, currently trading at $15.21.
  • $SUI: Another big mover, the Sui token surged by 64% following Grayscale’s announcement of the Sui Trust, offering accredited investors in traditional finance exposure to the crypto asset. The news of a potential Sui spot ETF also fueled investor enthusiasm.

Eye-Catching Stories in Crypto
In a major announcement, Strike CEO and prominent Bitcoin advocate Jack Mallers, along with Tether and SoftBank Group, unveiled Twenty One, a new venture designed to accumulate Bitcoin. The entity plans to go public via a SPAC merger with Cantor Equity Partners (CEP) under the ticker symbol XXI. Twenty One aims to replicate the success of other Bitcoin treasury companies like MicroStrategy and will hold over 42,000 Bitcoin at the merger's close, positioning itself as the third-largest publicly listed Bitcoin holder.

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