Bitcoin Tops $105K; Crypto ETF Issuer Eyes 35% Potential Rally

Bitcoin Rebounds to $105K Despite Moody’s U.S. Downgrade; Analysts Eye $138K Target

Crypto markets bounced back Monday after a shaky start triggered by Moody’s downgrade of the U.S. government’s credit rating. Bitcoin, which fell to $102,000 earlier in the day, reversed course and reclaimed $105,000 by afternoon trading — signaling resilience in the face of macro uncertainty.

Ether (ETH) also recovered, rising 1.2% to cross back above $2,500. While most top altcoins remained under pressure, Aave (AAVE) saw notable gains. Others like Solana (SOL), Avalanche (AVAX), and Polkadot (DOT) dropped between 2–3%, though off their session lows.

The rebound wasn’t isolated to crypto. U.S. equities, including the S&P 500 and Nasdaq, also reversed losses after the downgrade spooked bond markets and pushed 10- and 30-year Treasury yields above 4.5% and 5%, respectively.

Market watchers largely downplayed the downgrade’s long-term impact.

“This move from Moody’s was widely expected,” said Ram Ahluwalia of Lumida Wealth. “In the short term, we may see some rebalancing by funds limited to AAA assets, but it’s unlikely to shift broader sentiment.”

Callie Cox of Ritholtz Wealth echoed that view, calling the downgrade “already priced in” and noting muted reaction from equity markets.

In the crypto world, optimism remains high — particularly for Bitcoin. A new report from 21Shares forecasts BTC could climb to $138,500 this year, citing strong institutional inflows, supply-side constraints post-halving, and steady ETF accumulation as catalysts.

“Bitcoin is setting up for a major breakout,” said strategist Matt Mena. “We’re seeing sustained demand from funds, corporations, and even governments — and that changes the trajectory.”

21Shares emphasized that spot ETFs are soaking up more bitcoin than miners produce daily, contributing to a tightening supply that could support long-term price appreciation.