Bitcoin briefly surged to $82,026 before stabilizing above the $81,000 level, showing resilience even as global markets faced renewed uncertainty. Major cryptocurrencies remained relatively strong, with altcoins like Solana and Dogecoin outperforming on short-term momentum.
The broader crypto market held its ground despite increasing pressure from macroeconomic factors. Rising oil prices, higher U.S. Treasury yields, and geopolitical tensions particularly involving Iran have begun to weigh on traditional risk assets such as equities. Yet, digital assets have so far avoided a significant pullback.
Bitcoin traded around $81,000 during Tuesday’s Asian session, May 12, maintaining most of its recent gains. Among altcoins, Solana emerged as the top performer, climbing roughly 2% on the day, while Dogecoin posted similar gains. BNB advanced 1.7% to $662, XRP rose 0.9% to $1.46, and Ethereum slipped slightly by 0.8%.
Investor Michael Burry, widely known for predicting the 2008 financial crisis, has raised concerns about excessive valuations in equity markets. In a recent note, he warned that the Nasdaq 100 is trading at approximately 43 times earnings, significantly above its historical norm.
Burry compared the current environment to the moments before a crash, suggesting that the market is in a dangerously overheated phase. He highlighted the sharp rally in semiconductor stocks, particularly the Philadelphia Semiconductor Index, which has surged around 70% since late March. According to him, this reflects a parabolic rise driven by excessive optimism around artificial intelligence.
He also cautioned that earnings expectations for high-growth tech companies may be overstated by more than 50%, urging investors to take profits and reduce exposure, especially in AI-related trades.
Meanwhile, oil markets added to the uncertainty. Prices climbed above $105 per barrel after Donald Trump cast doubt on the durability of a ceasefire with Iran. Concerns over prolonged disruption in the Strait of Hormuz have fueled fears of sustained supply constraints.
The ripple effects were visible across global markets. Asian equities retreated from recent highs, with South Korea’s Kospi dropping sharply amid policy uncertainty tied to proposed taxes on AI-driven profits. European and U.S. futures also pointed lower, despite the S&P 500 recently capping a six-week rally with record highs.
Investors are now turning their attention to upcoming U.S. inflation data, which could play a decisive role in shaping near-term market direction. A stronger-than-expected inflation reading may reinforce concerns about prolonged higher interest rates, putting pressure on both equities and crypto. On the other hand, softer data could provide further support for risk assets and extend the current rally.
For now, Bitcoin’s ability to hold above key levels signals underlying strength, but with macro risks building and prominent voices warning of a potential bubble, volatility may be far from over.
