Bitcoin is extending its gains, rising 1.4% to reach $104,815. This surge signals a potential return to previous highs, just under the all-time peak of $109,228, supported by improved market sentiment.

Drivers of Bitcoin’s Momentum

• Trade Optimism: Signs of easing U.S.-China trade tensions are boosting risk appetite.
• Dovish Fed Sentiment: Recent inflation data has fueled expectations of future Federal Reserve rate cuts, enhancing Bitcoin’s attractiveness.
• Credit Rating Impact: The U.S. downgrade by Moody’s is driving demand for non-sovereign assets like Bitcoin.

Investor Insights

As corporate treasuries such as MicroStrategy add Bitcoin to their portfolios, the asset class continues to gain legitimacy among mainstream investors. The overall market trend suggests a move towards alternative investments in light of changing economic conditions.