Bitcoin Surges Above $107,000 Amid Improving Market Sentiment

The first cryptocurrency has continued its recovery following a de-escalation of tensions in the Middle East, with the asset increasing by 1.9% over the last 24 hours, according to CoinGecko.

At the time of writing, digital gold is trading around $107,130.

Popular cryptocurrencies such as Ethereum and Solana are slightly trailing behind the market leader in terms of growth rate over the past day.

Ryan Li, the chief analyst at Bitget Research, pointed out that the initially uncertain recovery of Bitcoin after its sudden drop below $99,000 indicates lingering caution among market participants. He believes that the inflow of funds into spot ETFs is providing support to the leading cryptocurrency.

The expert speculated that the current increase is linked to improved market sentiment. On Wednesday, futures for U.S. stocks saw a slight uptick as the Nasdaq 100 continued its upward trend, closing at a record high the previous day. Asian markets also «joined the rally.»

U.S. government bond yields fell, and the dollar stabilized following comments from Federal Reserve Chairman Jerome Powell, who stated that various scenarios are possible in monetary policy. His remarks heightened expectations of a rate reduction amid «diminished consumer confidence,» as reported by CoinDesk.

Discussions within the community have resumed regarding whether digital gold qualifies as a safe-haven asset or merely responds to macroeconomic conditions and inflows via ETFs.

According to him, the V-shaped rebound to its current price level after breaching the psychological threshold of $100,000 signifies «increasing liquidity and integration into mainstream portfolios.»

Chait further noted that previously, geopolitical shocks often triggered a «flight to cash,» but now institutional demand is cushioning declines and accelerating recoveries.

It’s worth mentioning that CoinDesk analyst Omkar Godbole has identified that short-term investors and miners are actively selling Bitcoin above the $100,000 mark.