Crypto Markets Rebound as Bitcoin Holds $105K; 21Shares Predicts Breakout to $138K
Bitcoin staged a recovery Monday, clawing back losses sparked by a U.S. credit downgrade from Moody’s. The leading cryptocurrency briefly dipped to $102,000 during early U.S. trading hours but rebounded strongly to hover around $105,000 by afternoon, reflecting a broader risk asset bounce.
Ether followed suit, rising 1.2% to reclaim the $2,500 mark. Despite early weakness, select DeFi assets like Aave (AAVE) outperformed, while others including Solana (SOL), Avalanche (AVAX), and Polkadot (DOT) remained in the red.
The rebound came after Moody’s cut the U.S. credit rating, triggering a spike in Treasury yields and initial risk-off sentiment across global markets. However, the downgrade—expected by many analysts—failed to derail equities or digital assets for long.
“Markets have largely priced this in,” said Ram Ahluwalia, CEO of Lumida Wealth. “Short-term noise, long-term irrelevance.”
Ritholtz Wealth’s Callie Cox echoed that sentiment, noting on X that Moody’s was simply the last of the big three agencies to act. “No surprise here—investors are moving on.”
Meanwhile, analysts at 21Shares say Bitcoin is entering a critical phase. The firm’s research strategist Matt Mena sees structural catalysts aligning for a breakout, with price potentially reaching $138,500 this year—a 35% upside from current levels.
Mena pointed to the rapid absorption of BTC by spot ETFs, a tightening post-halving supply, and growing institutional adoption as core factors. He also cited growing interest from sovereign entities exploring BTC as a strategic reserve asset.
“Unlike past rallies driven by retail speculation, this move appears grounded in fundamental shifts,” Mena noted. “The setup is stronger, and the ceiling is higher.”
