Bitcoin Surges Amid Global IT Outage, Reaches Nearly $67,000

Bitcoin Rallies as Major IT Outage Hits Global Systems

The cryptocurrency market experienced a significant resurgence on Friday, with Bitcoin (BTC) reaching its highest price in nearly a month. The rally occurred amidst a widespread IT outage that affected various sectors worldwide. During the early hours of U.S. trading, BTC broke through the $66,000 mark, eventually peaking at $66,700 in the afternoon, marking the first time it has reached this level since June 17. This surge in price was supported by robust trading volumes, particularly for BlackRock’s spot Bitcoin ETF (IBIT). As of the latest updates, Bitcoin was trading around $66,500, reflecting a notable 4% increase over the past 24 hours.

Among alternative cryptocurrencies, Solana (SOL) distinguished itself by leading the major altcoins with an impressive 8.5% rise, surpassing the $170 threshold for the first time since early June. This performance outpaced the broader digital asset benchmark, the CoinDesk 20 Index (CD20), which saw a 4.3% increase.

Earlier in the week, cryptocurrencies experienced a downturn, moving in sync with a sell-off in U.S. stocks. Nevertheless, Friday’s rally occurred concurrently with continued declines in major equity indexes. As of 1 p.m. ET, the tech-heavy Nasdaq Composite was down 0.8%, and the S&P 500 had lost 0.6%. Gold, too, fell sharply, dropping over 2% during the day, following a fresh all-time high earlier in the week.

This surge in Bitcoin’s value coincided with a significant software update from cybersecurity service provider CrowdStrike, which led to widespread computer outages, disrupting airlines, banks, and various businesses globally. In light of this, some cryptocurrency analysts highlighted the resilience of decentralized systems like public blockchains, contrasting them with the vulnerabilities of centralized networks.

Charles Edwards, the founder of the crypto hedge fund Capriole Investments, noted the timing of Bitcoin’s surge, suggesting it might indicate increased interest from institutional investors. He posed a thought-provoking question on social media, asking, “Did some institution just wake up and decide Bitcoin is a safe haven decentralized store of value as global tech and banking systems fail from Microsoft’s blue screen of death?”

Bitcoin Eyes $100,000 by Year-End

When examining the market over a longer timeframe, Bitcoin is currently trading in the middle of a multi-month sideways channel that ranges between $56,000 and $73,000. Although spot prices may remain confined within this range in the near term, traders are increasingly positioning themselves for a potential breakout towards new all-time highs, especially in anticipation of the U.S. elections in November. Digital asset hedge fund QCP noted a strong demand for December $100,000 Bitcoin call options from institutional players.

Mads Eberhart, a crypto analyst at Steno Research, expressed optimism for the latter half of the year regarding crypto assets, citing several favorable factors. These include expected U.S. interest rate cuts, increasing liquidity, regulatory clarity in Europe, and heightened prospects for more crypto-friendly leadership in the U.S. He outlined his ambitious price targets, stating, “Bitcoin at $100,000. Ethereum at $6,500.”