Bitcoin saw a modest rebound on Monday, edging higher as the world’s leading cryptocurrency continued to find support near recent record highs. The uptick comes amid encouraging regulatory developments and growing interest from institutional investors.
As of 01:18 ET (05:18 GMT), Bitcoin was trading at $109,457.9, marking a 1.2% gain for the day. This movement follows a brief pullback after the token reached an all-time high of nearly $112,000 last Thursday, before dipping to lows of $107,000 on Friday due to profit-taking and large-volume whale transactions.
Strong Market Support Amid Profit-Taking
According to analysts at IG, Bitcoin’s minimal resistance at its previous record high of $109,576 indicates strong upward momentum. They also noted that the volume of profit-taking this time was significantly lower than during Bitcoin’s $100,000 milestone in December—an indication of ongoing investor confidence.
Global Regulatory Developments Bolster Sentiment
Supportive regulatory news continues to boost market sentiment. Last week, the U.S. Senate made progress on the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, signaling increased legislative focus on stablecoin frameworks.
Meanwhile, Hong Kong passed a landmark bill on May 21 introducing a licensing regime for fiat-backed stablecoin issuers—further evidence of global efforts to formalize and regulate the space.
Adding to the optimism, reports surfaced that major U.S. banks are in early discussions to develop a joint stablecoin, aiming to keep pace with the growing crypto market.
Outlook: Cautious Optimism Ahead
IG analysts expect Bitcoin’s bullish trend to persist, though they caution that a short-term technical correction is possible. Key support levels are seen in the $102,000–$102,500 range, especially considering the current high valuations and elevated market sentiment.
Despite the broader optimism, some skepticism remains. Minneapolis Federal Reserve President Neel Kashkari reiterated his doubts about cryptocurrency’s practical use cases, labeling it primarily speculative during a Bloomberg TV interview.
Altcoins Follow Bitcoin’s Lead
The broader crypto market mirrored Bitcoin’s upward movement. Ethereum rose 2.1% to $2,563.52, while XRP climbed 1% to $2.3440. Solana, Cardano, and Polygon posted gains of 1.9%, 2.6%, and 1.5%, respectively.
Among meme tokens, Dogecoin added 2.5%, while $TRUMP saw a modest increase of 0.4%.
