Bitcoin is showing impressive strength again today as it continues to break out even while tech mega-caps are getting crushed. The cryptocurrency has broken well above the $87,000 level, driven by increasing institutional demand and a plunging US Dollar. This unprecedented surge reestablishes Bitcoin’s growing reputation of a safe haven asset.

Bitcoin's Bullish Momentum

Bitcoin’s apparent break above its multi-month declining trend, marking a possible turn in market dynamics after a year in the bear’s grip. The recent increase occurred while Nasdaq futures were down 1%, showcasing Bitcoin's ability to perform independently of traditional tech stocks. After the historical April 2024 halving, Bitcoin has gone up by over 33%, deepening its bullish trend.

At the time of writing, BTC price is trading at almost $87,000, representing a gain of more than 2.5% in the last 24 hours. This price action has been occurring alongside a notable 10% decline in the US Dollar Index (DXY) since the beginning of 2023. This would imply that as Bitcoin increases in value, the US dollar is losing value.

"The narrative in both gold and Bitcoin is aligning for the first time in years," - Kobeissi Letter

Strategic Investments and Market Dynamics

Strategy, a key player in the Bitcoin ecosystem, is on economy up. The firm, recently estimated to be worth more than $44.9 billion, purchased 3,459 BTC on April 14 and holds 531,644 BTC now. This huge institutional holding is a clear representation of continuing confidence in the belief that Bitcoin will retain its long-term value.

Bitcoin’s price action is quickly coming to look like that of gold, which just hit its 55th all-time high in a year. This coincidental alignment points to a developing common understanding of Bitcoin as an emerging store of value, largely comparable to gold. Meanwhile, the US Dollar is flashing warning signs of a weaker US Dollar and more global uncertainty ahead.

Potential Turbulence Ahead

Though the general outlook for Bitcoin may seem rosy, analysis of exchange order books suggests stormy seas on the horizon. Investors are advised to be alert and prudent, especially in light of the cryptocurrency market’s known volatility.