#BTC# Bitcoin (BTC) managed to exceed the price of $89,000 as investors flocked to the cryptocurrency amid traditional market turmoil and rising political uncertainty.

This jump highlights Bitcoin's growing reputation as a hedge against systemic risks and its appeal among institutional investors.
Market dynamics fueling the rally
The recent increase in the price of Bitcoin is due to several coinciding factors. The significant weakening of the US dollar, with the dollar index (DXY) falling to a three-year low, caused investors to explore alternative assets. At the same time, US stock markets experienced notable declines, with the S&P 500 and Nasdaq dropping by over 2% amid concerns about Federal Reserve policies and political tensions.
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Institutional interest in BTC has strengthened, as evidenced by significant ETF inflows. Just on Monday, spot Bitcoin ETFs recorded a net inflow of $381 million, marking the highest result in three months. Additionally, large corporations continue to increase their stakes in Bitcoin. Strategy, formerly known as MicroStrategy, recently acquired 6,556 BTC for approximately $555.8 million, bringing its total holdings to over 538,000 BTC.
24-hour trading volume and liquidation
Bitcoin's 24-hour trading volume grew by nearly 40%, reaching $37 billion, reflecting increased market activity and investor interest. This increased volatility has led to significant liquidations in the derivatives market. According to CoinGlass, over the past 24 hours, the total volume of liquidations in the crypto market has reached $274.78 million, ($136.03 million in long positions and $138.75 million in short позиции).
Emerging status of Bitcoin as a financial hedge
Analysts are increasingly viewing Bitcoin as a viable hedge against the traditional risks of the financial system. Jeff Kendrick, head of the Digital Assets Research department at Standard Chartered, noted that the resilience of BTC during market downturns positions it as a safeguard against both private sector vulnerabilities and government-related financial risks.
Technical indicators and market sentiment
Although the momentum of the leading digital asset remains strong, technical indicators suggest caution. The Relative Strength Index (RSI) has entered overbought territory, indicating potential for a short-term correction. Analysts warn of a possible price drop of 10-15% if Bitcoin fails to decisively break the resistance level of $89,000.
Metaplanet bought Bitcoin for another $28 million
Perspectives and future forecasts
Despite potential short-term fluctuations, the long-term outlook for BTC remains optimistic. Analysts predict that if current trends continue, Bitcoin could reach $100,000 in the near future. This forecast is supported by ongoing institutional adoption and favorable macroeconomic conditions.
As BTC continues to solidify its positions in the global financial landscape, its performance will be closely monitored by both investors and politicians.