Bitcoin Surges to $96,000 Amid Crypto Market Rally
So far in 2025, rumors have emerged of large-scale purchases by China, adding to those by India and Russia.
Quick overview
- Cryptocurrencies are trading higher, with Bitcoin surpassing $96,000 on May 1.
- Experts suggest Bitcoin may follow gold's trajectory as a store of value amid economic volatility.
- Foreign central banks have reduced U.S. Treasury bond holdings to a 22-year low, while gold reserves have increased.
- Large-scale Bitcoin purchases by China, India, and Russia indicate a shift away from the U.S. dollar.
Live BTC/USD Chart
Cryptocurrencies are mostly trading higher this Thursday, May 1, with Bitcoin standing out as it surpasses $96,000.
Experts believe that just as gold hit record highs amid the flight to safety triggered by the trade war, Bitcoin could experience a similar trajectory.
Bitcoin may be following gold’s path as a store of value in the face of a volatile macroeconomic environment. A recent report highlights that as digital assets gain broader global legitimacy, Bitcoin is increasingly being seen as a modern alternative to gold for value preservation.
Central Bank Activity
In this context, foreign central banks have reduced their holdings of U.S. Treasury bonds to 23%—a 22-year low—while gold reserves have risen to 18%. It’s worth noting that Bitcoin surged from $9,000 to $60,000 in 2020 under similar conditions, suggesting a comparable outcome could occur in 2025.
However, Bitcoin’s bullish narrative could be challenged if the global economy enters a recession in 2025. In such scenarios, investors tend to prioritize liquidity and traditional safe-haven assets like cash or U.S. Treasuries over speculative assets like Bitcoin, as was recently pointed out.
So far in 2025, rumors have emerged of large-scale purchases by China, adding to those by India and Russia as they seek to diversify away from the U.S. dollar.
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