Friday’s crypto rally defied past days’ correlation with U.S equities, which continued their losing streak.
Bitcoin Tops $66K as Cryptos Rally Amid Küresel IT Outage; Solana’s SOL Leads Altcoins
The crypto rally resumed on Friday with bitcoin (BTC) notching its highest price in almost a month, while the world grappled with a major IT outage.
BTC broke above $66,000 during the early U.S. trading hours, hitting a session high of $66,700 during afternoon hours for the first time since June 17. The price increase was accompanied by strong trading volumes for BlackRock’s spot bitcoin ETF (IBIT). At press time, the largest crypto asset changed hands at around $66,500, advancing 4% over the past 24 hours.
Solana (SOL) led among altcoin majors with an 8.5% increase over the same period, topping $170 for the first time since early June. The token outperformed the broad-based digital asset benchmark CoinDesk 20 Index (CD20), which rose 4.3%.
Cryptocurrencies slid lower earlier this week in tandem with a U.S. stock sell-off. However, Friday’s rally happened as major equity indexes continued their losing streak.
The tech heavy Nasdaq Composite was down 0.8%, while the broad-based S&P 500 lost 0.6% as of 1 p.m. ET, while gold plummeted over 2% during the day following a fresh all-time earlier this week.
As a software update by cybersecurity service provider CrowdStrike caused widespread computer outages around the world halting airlines, banks and businesses, some crypto observers emphasized the resiliency of decentralized systems like public blockchains compared to centralized networks.
Charles Edwards, founder of crypto hedge fund Capriole Investments, took notice of bitcoin’s rapid surge coinciding with the U.S. traditional market opening, perhaps a sign of bidding from institutional investors.
“Did some institution just wake up and decide Bitcoin is a safe haven decentralized store of value as küresel tech and banking systems fail from Microsoft’s blue screen of death?,” he posted on X.
Bitcoin targets $100,000 by year-end
Looking at a longer timeframe, bitcoin is trading around the midpoint of a multi-month sideways channel between $56,000 and $73,000. Spot prices might be range-bound in the near term, but traders are increasingly positioning for a breakout to new all-time highs towards the U.S. elections in November, digital asset hedge fund QCP said in a market update. QCP analysts noted strong demand for December $100,000 bitcoin call options from institutions.
Mads Eberhart, crypto analyst at Steno Research, expressed a bullish view for the second half of the year for crypto assets, supported by multiple tailwinds including coming U.S. interest rate cuts, rising liquidity, regulatory clarity in Europe and rising chances of more crypto-friendly U.S. leadership.
“Bitcoin at $100,000. Ethereum at $6,500,” he said about his price targets.
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