Bitcoin Surges Past $100,000 Amid Trade Talks and Rising Institutional Interest

Bitcoin has surpassed the $100,000 mark for the first time since February, buoyed by anticipated US-China trade discussions and a potential UK deal. Analyst Geoff Kendrick forecasts it could climb to $120,000 by the end of Q2, driven by institutional investments and Federal Reserve policies. The general market sentiment is trending positive, reflecting a bullish outlook among investors and strong ETF inflows.

Bitcoin has just breached the $100,000 threshold for the first time since February, riding the wave of anticipation surrounding upcoming trade discussions between the US and China, alongside potential UK trade negotiations. According to CoinGecko, the digital currency briefly surged past this key price point before retreating slightly to around $99,500. However, this still marks a daily increase of 2.6% and a weekly boost of 3.5%.

This resurgence in Bitcoin’s price comes on the heels of an announcement from US President Donald Trump, who hinted at a “major trade deal” via his Truth Social platform. This deal, if it comes to fruition, could be a pivotal moment for US-China relations, which have been strained in recent years due to economic turbulence and tariffs stemming from Trump’s policies.

Meanwhile, US Treasury Secretary Scott Bessent is on his way to Switzerland for discussions aimed at easing the trade tensions. He’s mentioned that these talks are more about de-escalation rather than crafting a full-fledged trade agreement. It’s a delicate situation, but the markets are reacting positively, particularly in the cryptocurrency space.

Geoff Kendrick, a Standard Chartered analyst, believes that Bitcoin’s upward trajectory could continue, hinting at a price target of $120,000 by the end of June. He notes that significant investor deadlines are approaching next week, which means heavyweights like MicroStrategy will reveal their Bitcoin holdings, potentially influencing market sentiment further.

Kendrick sited an example involving Abu Dhabi’s sovereign wealth fund, which, at last report, held a modest amount of Bitcoin. He anticipates that this position may have expanded, with other long-term buyers likely to have entered the market too. Notably, there’s been recent activity from the Swiss National Bank, which has begun purchasing shares in MicroStrategy, boosting confidence in Bitcoin’s future.

On the back of the Federal Reserve’s recent policy update—where interest rates were kept steady—Bitcoin’s price has rebounded from around $94,000 earlier this week. Fed Chair Jerome Powell mentioned “heightened uncertainty” but praised the stability of the US economy. Marco Lim, from Solowin Holdings, commented on how these Federal decisions are crucial for Bitcoin’s potential rise to $120,000, especially if the market anticipates rate cuts.

The market sentiment within the crypto trading community is swinging towards optimism, with the Crypto Fear and Greed Index currently sitting at 65, indicating a sentiment of Greed, up from Neutral just a week ago. LMAX Group’s Joel Kruger pointed out that this shift in sentiment comes from easing geopolitical tensions, along with growing institutional interest.

This positive momentum was further evidenced as Bitcoin ETFs reported inflows of $142 million on Wednesday, reversing an $85 million outflow seen the day before. Ark Invest was credited for driving these inflows, which boosts Bitcoin’s standing as a serious portfolio diversifier,

Peter Chung from Presto added that global institutions are increasingly seeking to diversify away from USD assets, benefiting both Bitcoin and gold as major alternative investments. The shifting financial climate due to ongoing tariffs and trade disputes across the globe is likely supporting this risk-on attitude, which bodes well for Bitcoin and other risk assets going forward.