Bitcoin Rises, Holds Near $107,000 in Contrast to Slumping Altcoins
Markets also digested a weaker-than-expected final reading of first-quarter U.S. GDP, which showed a 0.5% contraction.
Quick overview
- Most major digital assets are trading lower, but Bitcoin is up 2.6% this week, surpassing $107,000.
- Ethereum rose 3.8%, while altcoins like Sui, Cardano, and Dogecoin experienced significant losses.
- Senator Marsha Blackburn hinted at U.S. interest in acquiring 1 million bitcoins, but Senator Cynthia Lummis emphasized that other legislation takes priority.
- Wall Street's main indexes closed higher as investors anticipated interest rate cuts following weak U.S. economic data.
Most major digital assets are trading lower over the past 24 hours, but Bitcoin (BTC) is holding steady and moving higher, defying the broader market trend.
Top cryptocurrencies posted losses of up to 8% on Thursday, yet Bitcoin has moved sideways over the last 24 hours and is up 2.6% so far this week, surpassing the $107,000 mark.
Among altcoins, Ethereum (ETH) rose 3.8% over the same period, while Sui plunged 8%, Cardano (ADA) dropped 7%, and Dogecoin (DOGE) fell 5.7%.
U.S. May Consider Bitcoin Reserves
Senator Marsha Blackburn stirred speculation at a recent Bitcoin Policy Summit by citing strong presidential interest in acquiring 1 million bitcoins (BTC) as a strategic reserve for the United States.
However, Senator Cynthia Lummis—the bill’s sponsor—downplayed the momentum, emphasizing that legislation on market structure and stablecoins takes priority. She added that a vote on the proposal to acquire Bitcoin would likely take place “hopefully in the next calendar year.”
The senators’ remarks sparked a wave of speculation on social media, with some falsely claiming the bill to purchase 1 million BTC would move ahead faster than other crypto-related legislation. In reality, their comments point to a more nuanced and complex outlook.
Traditional Markets
Wall Street’s main indexes closed higher on Thursday, as investors welcomed increased bets on interest rate cuts amid weak U.S. economic data.
The Dow Jones Industrial Average climbed 0.94% to 43,386.84 points. The S&P 500 advanced 0.80% to 6,141.02, and the Nasdaq Composite gained 0.97%, ending at 20,167.91.
According to The Wall Street Journal, President Donald Trump is reportedly considering replacing Federal Reserve Chair Jerome Powell—possibly before October—due to frustration over the Fed’s reluctance to cut rates.
Markets also digested a weaker-than-expected final reading of first-quarter U.S. GDP, which showed a 0.5% contraction. The decline comes amid heightened uncertainty around Trump’s trade tariff policies.
The disappointing economic data and reports about potential changes at the Fed fueled expectations of rate cuts. As a result, major indexes advanced, with both the S&P 500 and Nasdaq now nearing new all-time closing highs.
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