Wall Street demonstrates record performances, creating an optimistic atmosphere for cryptocurrencies, particularly Bitcoin. The possibility of hitting the $112,000 price threshold is analyzed.
Wall Street Hits Historical Highs
Last week, U.S. stock indices hit historical highs, generating increased investor interest. S&P 500 futures reached 6,145 points, surpassing the previous February peak, while Nasdaq Composite rose to 20,180 points.
This surge contributed to a 23% increase in the S&P 500 since its drop on April 8. "U.S. equity futures are approaching historic highs, supported by geopolitical stability and expectations of Fed rate cuts," - Nick Ruck, director of LVRG Research, stated.
Bitcoin Faces Resistance
Despite favorable conditions, Bitcoin struggles to break the key $108,000 level, retreating to $107,400. Markus Thielen, head of research at 10x Research, notes that many traders are selling covered call options against their BTC positions, limiting price momentum.
However, Jeff Mei, COO of exchange BTSE, believes that "conditions are in place for Bitcoin to surpass its previous peak of about $112,000, especially now that the Iran-Israel conflict seems to be behind us."
Economic Conditions Favoring Bitcoin Growth
If the Fed does indeed start a monetary pivot as early as this summer, institutional flows could pick up again, triggering a new price discovery phase for Bitcoin. With PCE inflation stabilized at 2.3%, it provides an additional signal reinforcing the Fed's trajectory toward rate cuts.
This could create conditions for a decisive breakthrough above $112,000 for Bitcoin, opening new opportunities in the market.
With records in the stock market and expectations of rate cuts from the Fed, Bitcoin may find a new growth direction. Current economic conditions could lead to a breakout into a new price zone, though uncertainties remain.
