The leading cryptocurrency has continued its recovery following eased tensions in the Middle East, with the asset appreciating by 1.9% over the past 24 hours, according to CoinGecko.
At the time of writing, digital gold is trading around $107,130.
Popular crypto assets like Ethereum and Solana are slightly lagging behind the market leader in terms of 24-hour growth:
Bitget Research’s chief analyst Ryan Lee noted that the initially hesitant recovery of Bitcoin after its sudden drop below $99,000 indicates ongoing caution among market participants. In his view, the inflow of funds into spot ETFs is supporting the leading cryptocurrency.
“Bitcoin is still seen as a safe-haven asset, but a restrained risk appetite is slowing the recovery,” Lee noted.
The expert suggested that the current growth is linked to improved market sentiment. On Wednesday, U.S. stock futures rose slightly, continuing the upward movement of the Nasdaq 100 index, which closed at a record high the previous day. Asian markets also “joined the rally.”
U.S. Treasury yields fell, and the dollar stabilized. This followed a statement by Federal Reserve Chairman Jerome Powell that various scenarios are possible in monetary policy. His words heightened expectations of a rate cut amid “waning consumer confidence,” writes CoinDesk.
Safe Haven?
The community is once again debating whether digital gold is a safe-haven asset or merely reacting to the macroeconomic backdrop and ETF fund inflows.
“Bitcoin’s status as a safe-haven asset is still forming,” noted Xapo Bank’s Chief Investment Officer Gadi Chait.
In his opinion, the V-shaped rebound to current levels after breaching the psychological $100,000 mark indicates “growing liquidity and integration into mainstream portfolios.”
Chait added that previously, geopolitical shocks partly triggered a “flight to cash,” but now institutional demand smooths out dips and accelerates recovery.
As reported, CoinDesk analyst Omkar Godbole found that short-term investors and miners are actively selling Bitcoin above the $100,000 mark.