Bitcoin’s recovery sees it nearing $100,000 after significant drops due to Trump’s tariffs. Recent trading shifts focus to spot demand and momentum strategies, with notable inflows into ETFs. Renewed investor confidence is emerging despite prior volatility.
Bitcoin is making quite a comeback, hovering near the $100,000 mark once again. This increase follows its highest price since late February, as investor confidence seems to be rallying across the financial markets. Not too long ago, Bitcoin experienced a significant slide, dropping nearly 30% from a nearly $109,000 peak back on January 20, largely spurred by the fallout from Trump’s tariff policies that rattled both the stock and crypto markets.
Recently, Bitcoin bounced back, climbing as high as 3.1% to reach $97,483, its loftiest point since February 21. The last time it touched the $100,000 threshold was on February 7. Other cryptocurrencies, like Dogecoin and Ether, also joined the upward trend, with Dogecoin in particular appreciating by 4.8% and Ether rising 3.3%.
The renewed optimism among investors is reportedly linked to an increase in spot trading activities, which have started to offset the declining demand for derivative products previously favoured for leveraging. Nowadays, traders are more focused on momentum-driven strategies rather than macroeconomic influences, like inflation or tariffs, which were previously key factors in Bitcoin’s performance earlier this year.
In a notable surge, Bitcoin and Ether-based exchange-traded funds (ETFs) attracted over $3.2 billion from investors last week, with a substantial $1.5 billion flowing into the iShares Bitcoin Trust ETF, making it the largest influx this year. It seems clear there’s a growing market appetite for options as traders are now holding a significant number of contracts at the $100,000 strike price.
Despite the market’s ongoing volatility, it appears steady as liquidation levels for both long-term and short-term positions in crypto show little change. According to Chris Newhouse, the director of research at the DeFi trading firm Ergonia, the current trading environment favours momentum driven by spot demand. He notes that Bitcoin seems to exhibit two different macroeconomic patterns—it behaves somewhat like gold while also demonstrating equity-like characteristics.
Just a few weeks back, following Trump’s tariff announcements, the market experienced turmoil as investors showed a risk-averse attitude, which led to widespread liquidations of crypto futures. However, now there are signs of a renewed sense of confidence emerging in the digital asset landscape.
Also worth mentioning: Bitcoin ETFs have attracted a whopping $1 billion in inflows within just four days, coinciding with BTC’s upward trajectory.
