Bitcoin has surpassed $99,000, nearing the pivotal $100,000 level amid a strong 2025 bull run. Key drivers behind this surge include institutional demand, Federal Reserve interest rate signals, and robust on-chain fundamentals. Analysts speculate that reaching $100,000 could trigger increased investment interest. However, volatility is expected to remain significant, with resistance points projected at $101,800 and $104,000.
Bitcoin marked a significant milestone late Wednesday as it soared past the $99,000 mark, trading at approximately $99,027.83 at 11:47 p.m. ET. This surge underlines the ongoing 2025 bull run and positions Bitcoin as the top-performing major asset of the year. Several factors contribute to this rally, including rising institutional demand and expectations of rate cuts from the Federal Reserve, which have boosted investor confidence overall.
The momentum is heavily tied to institutional investors. Notably, BlackRock’s IBIT spot Bitcoin ETF has outpaced the SPDR Gold Trust regarding inflows this year. Meanwhile, significant BTC accumulation is still happening, with Japan’s Metaplanet and the U.S.-based firm Strategy leading the charge. Bitcoin’s realised capitalisation has now reached an impressive $890 billion, indicating robust long-term investor confidence.
Additionally, the Federal Reserve’s recent decision to maintain current interest rates has contributed to the dollar’s weakening. As traders speculate on potential rate cuts in the third quarter of 2025, there’s been a noticeable shift towards hard assets, especially Bitcoin and gold. This climate is fuelling further inflows into Bitcoin, enhancing its appeal for investors looking for stable assets.
Looking at on-chain fundamentals, the situation appears promising. Bitcoin’s supply on exchanges is at a historically low level, while mining difficulty has steadied, and the hash rate is hovering close to record highs. These indicators suggest a secure and bullish network, fostering even more investor confidence.
As Bitcoin approaches the coveted $100,000 mark, market analysts predict a potential surge driven by FOMO, or fear of missing out, among both retail and institutional investors. “Breaking $100K is more than a psychological milestone — it’s a clear signal to global capital that Bitcoin should be part of every investment portfolio,” commented crypto strategist Alex Thorn on X.
The impact of Bitcoin’s rally is also affecting altcoins, with Ethereum experiencing a 1.3% increase to $3,178 and Solana rising by 2.9%, approaching $140. These developments suggest that Bitcoin’s momentum is influencing the wider cryptocurrency market significantly.
Analysts are divided on whether Bitcoin can maintain its position above $100,000. While the possibility of a breakout seems strong, there’s a caution about the persistent volatility. Eyes are on key resistance levels around $101,800 and $104,000, with support anticipated near $95,000. Despite this, expectations surrounding ETF demand and the upcoming halving event indicate that this bull run may still be just getting started.
