Bitcoin Surges to One-Month High as Crypto Rally Resumes amid Major IT Outage
The crypto market saw a resurgence on Friday as bitcoin (BTC) surged to its highest price in a month, reaching above $67,000 for the first time since June 17. The rally was accompanied by strong trading volumes for BlackRock’s spot bitcoin ETF (IBIT), with BTC advancing 5.5% over the past 24 hours.
Altcoin major Solana (SOL) led the charge with an 8.5% increase, surpassing $170 for the first time since early June. Ethereum’s ether (ETH) also reclaimed the $3,500 level, although it underperformed with a 3% increase. The news of the first spot-based ETH exchange-traded funds (ETF) in the U.S. set to start trading next week added to the positive sentiment in the market.
The rally in cryptocurrencies came amidst a major IT outage caused by a software update from cybersecurity service provider CrowdStrike, which led to widespread computer outages affecting airlines, banks, and businesses globally. This incident highlighted the resiliency of decentralized systems like public blockchains compared to centralized networks.
As major equity indexes continued their losing streak, bitcoin’s rapid surge coinciding with the U.S. traditional market opening raised speculation of institutional investor interest. Analysts are increasingly positioning for a breakout to new all-time highs towards the U.S. elections in November, with strong demand for December $100,000 bitcoin call options from institutions.
Crypto analyst Mads Eberhardt expressed a bullish view for the second half of the year, citing multiple tailwinds including potential U.S. interest rate cuts, rising liquidity, regulatory clarity in Europe, and the possibility of more crypto-friendly U.S. leadership. He set price targets of $100,000 for bitcoin and $6,500 for Ethereum.
Overall, the crypto market’s resilience and potential for growth in the coming months have investors and analysts optimistic about the future of digital assets.
