Bitcoin Tops $66K Amid Global IT Outage; Solana's SOL Leads Altcoins Rally

Bitcoin has soared to a one-month high of $66,700, marking a 4% rise in the past 24 hours.

Solana also experienced an 8% increase, reaching over $170 for the first time since early June.

The recent crypto rally highlights the resilience of decentralized blockchains, especially in light of a global IT disruption caused by a software update malfunction.

On Friday, Bitcoin (BTC) surged to its highest price in nearly a month, as the world faced a significant IT outage. During early U.S. trading hours, BTC broke above $66,000, peaking at $66,700 in the afternoon. This marks the first time since June 17 that Bitcoin has reached this level. The price increase coincided with strong trading volumes for BlackRock's spot Bitcoin ETF (IBIT). At the time of writing, the largest cryptocurrency was trading at around $66,500, reflecting a 4% gain in the last 24 hours.

Solana (SOL) led the altcoin market with an 8.5% rise during the same period, surpassing $170 for the first time since early June. SOL outperformed the broader digital asset market, as represented by the CoinDesk 20 Index (CD20), which saw a 4.3% increase.

Earlier this week, cryptocurrencies experienced a decline alongside a U.S. stock market sell-off. However, Friday's crypto rally persisted even as major equity indexes continued to drop.

The Nasdaq Composite, heavily weighted with tech stocks, fell by 0.8%, while the S&P 500 lost 0.6% by 1 p.m. ET. Gold also declined by over 2% after reaching a fresh all-time high earlier in the week.

A software update from cybersecurity provider CrowdStrike caused widespread computer outages globally, affecting airlines, banks, and businesses. This incident underscored the resilience of decentralized systems like public blockchains compared to centralized networks.

Charles Edwards, founder of the crypto hedge fund Capriole Investments, noted the timing of Bitcoin's surge with the opening of U.S. traditional markets, suggesting potential institutional investor activity. "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?" he posted on X.

Bitcoin's Path to $100,000 by Year-End

Looking at a broader timeline, Bitcoin is trading around the midpoint of a multi-month range between $56,000 and $73,000. While spot prices may remain range-bound in the near term, traders are increasingly anticipating a breakout to new all-time highs as the U.S. elections approach in November. Digital asset hedge fund QCP highlighted strong demand for December $100,000 Bitcoin call options from institutions in their market update.

Mads Eberhart, a crypto analyst at Steno Research, expressed optimism for the second half of the year for crypto assets. He cited multiple positive factors, including anticipated U.S. interest rate cuts, increasing liquidity, regulatory clarity in Europe, and the potential for more crypto-friendly leadership in the U.S.

Conclusion

The recent rally in Bitcoin and other cryptocurrencies, despite global IT disruptions, underscores the strength and resilience of decentralized systems. With strong institutional interest and favorable market conditions, Bitcoin may be on track to reach new heights by the end of the year.

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