Bitcoin Catapults To $87,000: What Is Going On?

Bitcoin's BTC/USD price surge above $87,000 on Monday may not be as stable as it appears, according to leading crypto analysts and DeFi experts.

While the cryptocurrency continues to show technical resilience, experts warn that the rally's foundation could falter without support from macroeconomic indicators and on-chain metrics.

What Experts Are Saying: "Short-term bullish, mid-term fragile," said Chuck Zhang, CFO of PolyFlow, a DeFi platform focused on real-world assets. "As long as ETF inflows and technical momentum hold, the rally can persist. But absent confirmation from broader macro and on-chain activity, sustainability is at risk."

Speaking with Benzinga, Zhang pointed to growing credit stress and weakening on-chain flows as red flags, urging investors to monitor ETF performance, changes in open interest, and potential liquidity shocks closely.

Bitcoin's recent push to $87,500, its highest level in over three weeks, points toward a strong technical positioning, with the asset bouncing off its 50-day moving average.

But Alex Kuptsikevich, chief market analyst at FxPro, said only a strong close above the $88,000 level would "signal a break in the downtrend" and affirm Bitcoin's leadership in the broader market recovery.

Despite these gains, the underlying macro environment remains complicated by the U.S. Federal Reserve's hesitance to cut rates.

Also Read: How Traders Can Make Money When Bitcoin Trades Sideways: 10x Research

Why It Matters: Adding to the uncertainty is renewed political pressure on Fed Chair Jerome Powell.

President Donald Trump's public threats to remove Powell have shaken confidence in the Fed's independence, a move that some see as reinforcing Bitcoin's core appeal.

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"Delayed rate cuts could trigger short-term volatility for Bitcoin, but the bigger risk is systemic distrust," Zhang added. "Political pressure on Powell exposes institutional weakness, which ultimately strengthens Bitcoin's long-term appeal as a hedge against fiat instability."

Speaking with Benzinga, Charlie Hu, co-founder of Bitlayer, echoed that sentiment, stating the delay in rate cuts may dampen short-term momentum but is unlikely to derail Bitcoin's long-term upward trajectory.

"The postponed rally back above $100,000 is not a major concern in the long run," Hu said. "Bitcoin dominance is rising while altcoins struggle to hold key support levels."

On the DeFi front, Solana SOL/USD briefly surpassed Ethereum ETH/USD in total value locked (TVL), spurred by higher staking yields. However, analysts view this as temporary.

"It's mostly short-term yield chasing," Zhang noted. "True migration shows in developer activity, protocol innovation, and governance depth — not fleeting APY games."

Hu agreed, attributing the TVL spike to "specific protocol incentives" and temporary sentiment shifts.

"Ethereum still offers the deepest liquidity and most institutional trust," he added, referencing BlackRock's preference for Ethereum in asset tokenization.

While top-tier cryptocurrencies, including Bitcoin, Ethereum, XRP XRP/USD, and BNB BNB/USD, continue to lead recent market gains, Kuptsikevich cautioned that performance among mid-cap tokens remains inconsistent, suggesting selective confidence among investors.

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