The cryptocurrency market saw a surge in prices as Bitcoin hit a one-month high of $66,700, up 4% in the past 24 hours. Solana (SOL) also rose by 8.5%, surpassing $170 for the first time since early June. This rally comes amidst a major IT outage that caused disruptions in IT systems worldwide.
Bitcoin’s price surge was accompanied by strong trading volumes for BlackRock’s spot Bitcoin ETF (IBIT), with the largest crypto asset trading at around $66,500 at press time. Solana led among altcoin majors with an 8.5% increase over the same period, outperforming the CoinDesk 20 Index (CD20) which rose by 4.3%.
Earlier in the week, cryptocurrencies had slid lower along with a U.S. stock sell-off. However, the rally on Friday happened as major equity indexes continued their losing streak. While the Nasdaq Composite and the S&P 500 were down, gold also plummeted over 2% following a fresh all-time high earlier in the week.
The resiliency of decentralized systems like public blockchains was highlighted as a software update by cybersecurity service provider CrowdStrike caused widespread computer outages globally. Crypto observers noted the contrast between the decentralized nature of blockchain networks and the centralized networks that experienced disruptions.
Looking ahead, some analysts predict that Bitcoin could reach $100,000 by the end of the year. Bitcoin is currently trading within a multi-month sideways channel between $56,000 and $73,000, with potential for a breakout to new all-time highs towards the U.S. elections in November. Institutional demand for December $100,000 Bitcoin call options is growing, indicating bullish sentiment in the market.
Mads Eberhart, a crypto analyst at Steno Research, expressed optimism for the second half of the year for crypto assets, citing factors such as potential U.S. interest rate cuts, regulatory clarity in Europe, and the possibility of more crypto-friendly U.S. leadership. He mentioned price targets of $100,000 for Bitcoin and $6,500 for Ethereum.
As the cryptocurrency market continues to evolve, it’s essential for investors to stay informed about the latest developments and trends. With the rise of decentralized systems and the potential for significant price movements, understanding the dynamics of the market is crucial for making informed investment decisions.