Bitcoin soared past $87,000 early Monday, continuing a late-week rally that analysts say reflects a combination of macroeconomic uncertainty, weakening dollar sentiment, and renewed institutional demand for digital assets.

The flagship cryptocurrency is up more than 7% in the last 48 hours, recovering from last week’s brief dip below $82,000. The breakout marks Bitcoin’s highest level since its late March peak and places the digital asset back on track for potential new all-time highs in 2025.

A confluence of catalysts appears to be supporting the move:

• Weaker U.S. Dollar:
  The U.S. dollar index dipped sharply Monday morning after President Donald Trump intensified criticism of the Federal Reserve and hinted at a possible leadership shake-up. The remarks raised concerns about long-term stability in monetary policy, sending investors scrambling for inflation hedges like Bitcoin and gold. The yen, in contrast, surged to a seven-month high against the greenback.
• Institutional Inflows and ETF Demand:
  Over $230 million in net inflows poured into spot Bitcoin ETFs last week, according to data from Ark Invest and BlackRock. Metaplanet, a Japanese investment firm, announced it had acquired an additional 330 BTC—now holding nearly 5,000 Bitcoin in total. Analysts say the continued interest from institutions helps stabilize volatility and strengthen market confidence.
• Bullish Technical Breakout:
  On the technical side, Bitcoin’s price action broke through a multi-week resistance zone between $85,000 and $86,300. A “golden cross” has formed on the daily chart—where the 50-day moving average crosses above the 200-day moving average—a historically bullish signal for long-term investors.
• Bitcoin as a Strategic Asset:
  Momentum has also been bolstered by the Trump administration’s recent announcement of a U.S. Strategic Bitcoin Reserve, a move that positions BTC as part of a broader national economic security framework. While still in its early stages, the policy is viewed by crypto supporters as a major step toward mainstream adoption.

Analysts now eye the psychological $90,000 level as the next short-term target. If Bitcoin clears that threshold with volume, bullish sentiment could push prices toward $92,000 or higher.

Still, risks remain. Any reversal in macroeconomic sentiment—particularly if inflation accelerates or the Federal Reserve reasserts control—could challenge Bitcoin’s upward momentum.

“Bitcoin is trading like a macro asset again,” said Ava Greene, a senior digital strategist at Argo Capital. “It’s responding to dollar weakness, ETF flows, and geopolitical volatility. That makes it attractive to a whole new class of investors.”

• Price: $87,104
• 24h Change: +3.26%
• Market Cap: $1.71 trillion
• Dominance: 54.6%
• Volume (24h): $41.3 billion

With the 2025 tax season underway and inflation concerns still lingering, Bitcoin’s rally is prompting renewed questions from American investors. Is this a buying opportunity, or a potential top?

Financial advisors recommend caution, but say Bitcoin’s resilience is hard to ignore.

“It’s proving it belongs in long-term portfolios,” said Marcus Patel, a New York-based wealth advisor. “But you need to understand the risk profile and keep your position size reasonable.”

– Bitcoin Updates and Headlines from FingerLakes1.com