Leading Cryptocurrencies Surged Higher Thursday, Even as Stocks Remained Sluggish Due to President Donald Trump's Tax Bill-Induced Debt Fears

Bitcoin nearly reached $112,000 during the day, as part of a record-breaking rally that has put the top cryptocurrency into a tailspin.

Leading cryptocurrencies continued their stellar performance on Thursday, even as U.S. stocks encountered sluggish trading.

What Happened: Bitcoin nearly touched $112,000 during the day, as part of a record-breaking rally that has propelled the world’s top cryptocurrency to new highs. Its momentum was evident with a staggering $2.66 billion in 24-hour trading volume.

Next on the ranks, Ethereum displayed strong gains of about 4% and now boasts a remarkable 9.3% market dominance.

In May alone, Bitcoin exhibited an impressive 18% price surge, while Ethereum’s month-to-date gains went above 47%.

More than $300 million was liquidated from the cryptocurrency market over the last 24 hours, with short traders bearing the brunt of the liquidation.

Bitcoin’s Open Interest remained largely stagnant over the last 24 hours, while Ethereum saw a 9% increase in funds locked in derivatives.

Interestingly, the majority of Binance BTC traders were still short on the leading cryptocurrency.

According to the Crypto Fear and Greed Index, market sentiment has shifted dramatically from "Neutral" to "Greed" in a month’s time.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization now stands at $3.50 trillion, following an increase of 1.67% over the last 24 hours.

Stocks finished nearly flat on Thursday as investors responded to the House passing the Trump tax-cut bill, which raised concerns about debt increases and pushed the 30-year Treasury yield to levels not seen since October 2023. The Dow Jones Industrial Average lost 1.35 points to end at 41,859.09. The S&P 500 dipped 0.04% to close at 5,842.01, while the tech-focused Nasdaq Composite closed 0.28% higher at 18,925.73.

Investors are also keeping an eye on the U.S. Presidents Day holiday on Monday, which could lead to lighter volumes and increased volatility in the markets.

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Analyst Notes: Market analysis platform Barchart examined Bitcoin’s potential next moves, anticipating a "challenge" around $113,500.

"This 8-year trendline says it will face a challenge at about $113,500. Since late 2017, it’s been a tap-and-roll over. Will this time be different?" Barchart speculated.

Cryptocurrency analyst and trader Ali Martinez highlighted Ethereum’s “solid” support at $2,370, with no "significant" resistance walls ahead!

Photo Courtesy: Antonio Gravante On Shutterstock.com

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