George Pavel

The last two weeks proved to be a significant period for Bitcoin, as the leading cryptocurrency successfully consolidated its position above the critical $100,000 threshold. This milestone, initially breached on May 8, saw Bitcoin trading comfortably in the $101,000 to $106,000 range throughout last week.

The market benefited from sustained institutional interest. Strategy (formerly MicroStrategy) announced significant Bitcoin purchases of $1.34 billion last week, underscoring the firm’s conviction in the future of the asset. Spot Bitcoin ETFs also continued to see capital inflows. The involvement of major financial firms could remain supportive of Bitcoin’s price.

The broader economic landscape also provided tailwinds. Positive sentiment around international trade, including potential US-China deals, buoyed markets. Key US inflation data came in softer than expected, with headline CPI at 2.3%, its lowest since 2021. In this regard, a softer monetary policy could support the cryptocurrency.

As Bitcoin rose, traders sought to benefit from its performance. In such dynamic market phases, tools that facilitate learning from or even mirroring the strategies of more experienced market participants, such as social trading platforms like NAGA, can be valuable.

Last week ended with Bitcoin firmly established above $100,000, showcasing resilience. After a consolidation phase, the market could potentially see more appreciation, during which social and copy trading tools could help capture growth.

Pavel is General Manager at Naga.com Middle East