Bitcoin is trading around $107,000 as investors take profits from major cryptocurrencies like XRP and Solana, which are seeing declines of over 4% and 3%, respectively. Despite this profit-taking, the overall sentiment in the crypto market remains positive due to easing inflation, geopolitical stability, and regulatory advancements in Asia. The week has been characterized by a rebound in risk appetite across markets, with the S&P 500 reaching new heights and a positive influx into crypto ETFs, indicating increased institutional interest. Analysts suggest that conditions are ideal for Bitcoin to potentially exceed its previous record high of $112,000, particularly in light of diminished geopolitical tensions, including the recent resolution of the Iran-Israel conflict. Furthermore, policies from the Trump administration aimed at reducing trade tariffs could alleviate inflation pressures, potentially influencing the Federal Reserve's decisions on interest rate cuts. The launch of Hong Kong’s Policy Statement 2.0 aims to position the region as a digital asset hub, providing clearer regulations for stablecoin issuers and crypto platforms, contrasting with the fragmented regulatory landscape in the U.S.

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