Bitcoin (BTC) rebounded to $105,000 on Monday after dipping to $102,000 earlier in the U.S. session, following a Moody's downgrade of U.S. government bonds. The largest cryptocurrency increased by 0.4% over 24 hours after reaching a weekly close at $106,600 overnight.
Ether (ETH) also saw gains, rising 1.2% to reclaim the $2,500 level. DeFi lending platform Aave (AAVE) outperformed most large-cap altcoins, while Solana (SOL), Avalanche (AVAX) and Polkadot (DOT) were down 2%-3%.
Digital asset ETF issuer 21Shares forecasts Bitcoin could reach $138,500 this year. Research strategist Matt Mena noted that the current rally is driven by institutional inflows and a supply crunch. Spot Bitcoin ETFs have consistently absorbed more BTC than is mined daily.
According to Mena, these factors combined could lift BTC by roughly 35%.
This article is based on our author's analysis of materials taken from the following resources: Reuters.