Bitcoin’s remarkable rally continued Monday, with prices climbing above $95,000 for the first time since February 24. The renewed momentum in Bitcoin and the broader crypto market is being fueled by a mix of geopolitical optimism, monetary policy shifts, and a growing banking crisis that could position Bitcoin as a new safe-haven asset.
The latest rally began amid rising hopes for a potential trade deal between the United States and China, alongside comments from former President Donald Trump suggesting he would retain Federal Reserve Chairman Jerome Powell. These developments eased some of the bond market turmoil caused by bond vigilantes, who had reacted strongly to fears of political and economic instability.
However, Bitcoin’s next major catalyst may be more structural and long-term: the mounting $482 billion in unrealized losses at U.S. banks.
$482 Billion in Bank Losses Reinforces Bitcoin’s Safe-Haven Status
Recent earnings reports have revealed that American banks are grappling with significant unrealized losses, largely tied to longer-dated Treasury bonds purchased during the ultra-low interest rate environment of the pandemic years. As interest rates have surged to over 4%, the value of those fixed-income securities has plunged, leaving banks like Bank of America, Charles Schwab, JPMorgan Chase, and Wells Fargo exposed.
The problem is twofold: selling these bonds would mean crystallizing massive losses, severely impacting bank balance sheets and stock prices, while keeping them risks destabilizing confidence in the banking system, as seen in the collapse of First Republic Bank in 2023.
In this context, Bitcoin is increasingly being viewed as “collateral of last resort.” One analyst noted, “This massively reinforces the structural case for Bitcoin. Because Bitcoin isn’t just an inflation hedge anymore — it’s becoming the ultimate store of trust as traditional collateral erodes.”
Bitcoin Price Technical Analysis
From a technical perspective, Bitcoin’s price action remains bullish. On the three-day chart, Bitcoin has successfully broken through key resistance levels at $88,666, completing a double-bottom pattern earlier this month.
The cryptocurrency also remains well above critical support at $73,805, the upper boundary of the cup and handle formation that emerged earlier this year. Additionally, Bitcoin’s current price sits above its 50-day and 100-day Exponential Moving Averages (EMAs), signaling continued bullish control.
Analysts suggest that the next key resistance lies at $100,000, with a further breakout potentially pushing Bitcoin to its previous all-time high of $109,300. Beyond that, technical patterns indicate a possible move toward $122,000, aligning with the cup and handle pattern’s measured target.
Outlook for Bitcoin
As traditional banking risks mount and macroeconomic uncertainties persist, Bitcoin appears well-positioned to benefit. If the current momentum continues and systemic pressures within the banking sector intensify, Bitcoin could further solidify its role as a core safe-haven and alternative collateral asset.
With bullish technical indicators and strong fundamental drivers, Bitcoin’s path to new all-time highs seems increasingly viable as 2025 progresses.
