Bitcoin (BTC) and Ethereum (ETH) rallied Thursday as investors turned to Bitcoin amid a weak financial climate.

Bitcoin reached an intraday high of $97,437.96 in the early trading hours, then fell to roughly $96,500.

Leading cryptocurrencies rebounded on Thursday as investors turned to Bitcoin in a weak financial climate, while a strong first-quarter report from Microsoft set a positive tone for the market.

What Happened: Bitcoin reached an intraday high of $97,437.96 in the early trading hours, then fell to roughly $96,500 in the afternoon before making a fresh move past $97,000 overnight. Ethereum peaked at $1,872.94 for the day before pulling back to $1,835. Both assets saw an appreciable spike in trading volumes.

Bitcoin's market dominance rose to a yearly high of 63.8%, implying that investors were more confident in the "King Coin" relative to other cryptocurrencies.

The world's largest cryptocurrency is now trading at around $96,900, a 24-hour increase of 1.06%.

The crypto market returned to "Greed" sentiment, according to the Crypto Fear and Greed Index.

The global cryptocurrency market capitalization stands at $3.01 trillion, showing a 2.02% rise in the last 24 hours.

On the other hand, the U.S. economy contracted in the first quarter, as government spending fell sharply and the trade deficit widened.

Investors may be turning to Bitcoin as a safe haven in times of economic turmoil. A report by Token Terminal revealed that Bitcoin's realized value, which measures the average price at which coins last moved, fell to $31,800. This suggests that a large portion of Bitcoin's recent gains might be wiped out if the price drops significantly.

The upsurge resulted in $209 million in cryptocurrency liquidations, with $154 million in bearish shorts erased. Bitcoin's Open Interest exploded 8.21% to $66.93 billion in the last 24 hours, marking a jump in leverage and potential market volatility.

Interestingly, despite the surge, the majority of Binance traders with open BTC positions were short as of this writing.

Top Gainers (24 Hours)

The global cryptocurrency market cap now stands at $3 trillion, showing a 2.02% increase in the past 24 hours.

Stocks began May on a high. The Dow Jones Industrial Average rose 83.60 points, or 0.21%, to end at 40,752.96. The S&P 500 lifted 0.63% to finish at 5,604.14. The tech-heavy Nasdaq Composite spiked 1.52%, ending at 17,710.74.

The rally was catalyzed by strong first-quarter financials reported by tech biggies Microsoft Corp. and Meta Platforms Inc.. The two ‘Mag 7' companies reported revenue and earnings that exceeded expectations, earning gains of 7.63% and 4.23%, respectively.

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Analyst Notes: Seasoned trader Peter Brandt said Bitcoin was on target to reach the bull cycle top between $125,000 and $150,000 by August or September if it can "regain the broken parabolic slope." From then on, Brandt projected a 50% pullback.

Typically, parabolic slope patterns are characterized by a steep, rapid, and exponential rise in price, followed by a sharp decline.

Cryptocurrency trader and analyst CryptoBullet stated that Ethereum's mid-term correction is over, and the asset was primed for a "good" mid-term bounce.

"So in the next few months, I’m expecting a good rally: ETH & its ecosystem will bounce. My first target is $2500," the trader predicted.

Photo Courtesy: alfernec on Shutterstock.com

Read Next:output: The crypto market saw mixed movements on Thursday evening, with Bitcoin showing resilience despite macroeconomic concerns, while Ethereum continued its recovery.

What Happened: Bitcoin fell to about $96,000 in the early trading hours on Thursday but recovered to trade above the $97,000 level by 5:30 p.m. ET. The world’s largest cryptocurrency reached an intraday high of $97,437.96.

At press time, Bitcoin was up 1.06% for the 24-hour period to $96,908.8 on Bitcoin. A large portion of Bitcoin's recent gains could be wiped out if the price drops significantly, according to a report by Token Terminal.

The crypto market returned to "Greed" sentiment, according to the Crypto Fear and Greed Index.

The global cryptocurrency market cap now stands at $3 trillion, showing a 2.02