Bitcoin (BTC) price extends gains to 4-month high, hovering near $105k

Bitcoin extended gains on Monday, hovering near a four-month high, supported by easing global trade tensions and improving macroeconomic signals

Investing.com - Bitcoin extended gains on Monday, remaining close to a four-month high amid easing global trade tensions and improving macroeconomic signals, as investors also digested Moody's downgrade of the U.S. sovereign credit rating.

The world’s largest cryptocurrency rose 1.4% to $104,815.5 by 22:51 ET (02:51 GMT), having risen past $107,000 earlier in the session.

The token was now at its highest level since late January 2025 and was closely tracking its all-time high of $109,228.

Bitcoin rally driven by macro shifts, regulatory tailwinds

Bitcoin has surged more than 11% this month, largely driven by optimism over easing trade tensions between the world’s two largest economies.

Several other factors also contributed to this rise. Last week’s subdued inflation prints from the U.S. bolstered expectations of a Fed rate cut this year, but investors remained wary of a tariff-induced re-acceleration in inflation.

Lower inflation and the potential for reduced interest rates usually weaken the U.S. dollar, rendering alternative assets like Bitcoin more attractive.

Institutions also continued to pour investments into crypto, with Strategy Inc (NASDAQ:MSTR) recently stating that it had bought 13,390 BTC for $1.34 billion, highlighting growing corporate interest in Bitcoin as a strategic asset.

Major exchanges were also expanding their crypto offerings. Coinbase Global (NASDAQ:COIN) became the first digital asset player to join the S&P 500 index.

Bitcoin’s rally was also supported by optimism over a favorable regulatory environment under U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins.

Macroeconomic uncertainties, such as Moody's downgrade of the U.S. sovereign credit rating, also prompted investors to seek alternative stores of value.

Bitcoin's recent gains are being driven by a combination of geopolitical developments, institutional adoption, and its perceived role as a hedge against economic uncertainty.

Crypto price today: altcoins subdue gains; Ether slips 3%

Most other cryptocurrency prices remained largely bound on Monday after a volatile week.

World no. 2 crypto Ethereum fell 3.2% to $2,401.45.

World no. 3 crypto XRP advanced 0.7% to $2.3754.

Solana and Cardano were largely muted, while Polygon rose 0.6%.

Among meme tokens, Dogecoin fell 3%, while $TRUMP rose 0.7%.