Bitcoin Surged Above 87,000 Dollars After A Long Break! Analysts Issued Warnings! Here Are The Details

Bitcoin (BTC), due to increasing global liquidity and renewed institutional appetite, has surpassed the $87,000 level for the first time in over two weeks.

Bitcoin Surpassed $87,000 Due to Increased Global Liquidity, But Analysts Say the Bull Run is Premature

However, analysts warn that it is too early to say that a new bull market has begun due to the continued pressure of macroeconomic uncertainties on sentiment.

Bitcoin was trading at $87,525 with an increase of more than 2.4% in the last 24 hours. This movement indicates a sharp recovery since the beginning of this month when BTC fell to $74,500 following market tensions caused by U.S. President Donald Trump’s aggressive tariff proposals.

Liquidity and Institutional Demand is Increasing

Kronos Research analyst Dominick John attributed the recent rise to the increase in global M2 money supply and specifically to the corporate accumulation of Michael Saylor, who recently announced the purchase of 3,459 BTC.

John referred to data showing that the global M2 supply in the US, Europe, Japan, and China reached $90.2 trillion between December and February, stating, “The rise of Bitcoin above $87,000 is tightening the current supply due to the increase in global liquidity… and renewed institutional interest.”

Despite reporting an unrealized loss of 5.91 billion dollars in BTC assets in the first quarter, Strategy, which continues to defend Bitcoin, maintained its rise in public view. “There is no counterparty risk for Bitcoin… There is not even chaos,” Saylor says in a post on X.

Meanwhile, US spot Bitcoin ETFs recorded a net inflow of $15.8 million last week, indicating increased confidence among institutional players compared to the cautious sentiment observed in early February and March.

Other cryptocurrencies followed Bitcoin’s lead, albeit with mixed results. Ethereum (ETH) rose to $1,656 with a 0.97% increase, while XRP climbed to $2.13 with a 1.38% increase. However, Solana (SOL) fell to $140.20 with a 0.87% decrease.

Despite the rally, analysts continue to remain cautious. Presto Research’s research director, Peter Chung, noted that the ongoing US trade negotiations still represent a significant source of uncertainty.