Investing.com-- Bitcoin extended gains on Monday, hovering near a four-month high, supported by easing global trade tensions and improving macroeconomic signals, as investors also weighed Moody’s downgrade of the U.S. sovereign credit rating.
The world’s largest cryptocurrency rose 1.4% to $104,815.5 by 22:51 ET (02:51 GMT), after jumping past $107,000 earlier in the session.
The token reached its highest level since late January 2025 and was just shy of breaching its all-time high of $109,228.
Bitcoin rally backed by macro shifts, regulatory tailwinds
Bitcoin has surged more than 11% this month, mostly driven by optimism over easing trade tensions between the world’s two largest economies.
Several other factors also contributed to this rise. Last week’s subdued inflation prints from the U.S. bolstered expectations of a Fed rate cut this year, but investors were still cautious about a tariff-induced reacceleration in inflation.
Lower inflation and the potential for reduced interest rates typically weaken the U.S. dollar, making alternative assets like Bitcoin more attractive.
Institutional investments have also played a significant role; for instance, Strategy Inc (NASDAQ: MSTR ) recently acquired 13,390 BTC for $1.34 billion, highlighting growing corporate interest in Bitcoin as a strategic asset.
Major exchanges were also expanding their crypto offerings. Coinbase Global Inc (NASDAQ: COIN ) became the first digital asset player to join the S&P 500 index.
Bitcoin’s rally was further supported by optimism over a favorable regulatory environment under the U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins.
Macroeconomic uncertainties, such as Moody’s downgrade of the U.S. sovereign credit rating, have prompted investors to seek alternative stores of value.
Bitcoin’s recent gains are driven by a combination of geopolitical developments, institutional adoption, and its perceived role as a hedge against economic uncertainty.
Crypto price today: altcoins subdued; Ether slips 3%
Most altcoins were rage-bound on Monday after a volatile week.
World no.2 crypto Ethereum fell 3.2% to $2,401.45.
World no. 3 crypto XRP gained 0.7% to $2.3754.
Solana and Cardano were largely muted, while Polygon rose 0.6%.
Among meme tokens, Dogecoin fell 3%, while $TRUMP gained 0.7%.
