Bitcoin is nearing the $100,000 mark again, reaching its highest since February, indicating a revival of investor interest across financial markets.
Price Increases in Bitcoin and Other Cryptocurrencies
Bitcoin has rallied, climbing 3.1% to $97,483, its highest level since February 21. The digital asset last hit $100,000 on February 7. Smaller cryptocurrencies like Dogecoin and Ether have also seen notable gains, with Dogecoin up 4.8% and Ether increasing by 3.3%.
Changes in Trading Strategies
Investors are now favoring momentum-based trading techniques over traditional economic factors. This shift is due to rising activities in spot trading, which has counterbalanced declining demand for derivative assets. Chris Newhouse, director of research at Ergonia, noted that the market is now prioritizing trading based on market momentum due to increasing spot demand.
Economic Environment's Impact on Crypto Market
The market faced challenges following Trump's tariff announcements, leading to risk-averse behavior among investors and resulting in large-scale liquidations of crypto futures. However, current trends indicate renewed confidence in the digital asset space, with demand for options at a $100,000 strike price rising steadily.
Despite recent economic fluctuations and political factors influencing the market, the crypto landscape shows signs of renewed confidence as many investors return to active trading strategies.
