Bitcoin’s price surged past $100,000 for the first time since mid-February, fueled by optimism from U.S.-China trade talks and renewed interest from institutional investors, particularly in ETFs. The digital currency is currently 30% above its April low, despite a slight retreat from its peak. Economic factors, including stable interest rates, have alleviated concerns for risk assets, though high correlation with the S&P 500 signals potential volatility ahead.
On Thursday, Bitcoin made headlines by climbing above the crucial $100,000 threshold, thanks mainly to positive vibes surrounding U.S.-China trade negotiations and a fresh wave of institutional investments. This surge marked the first return above that significant mark since mid-February, even though it pulled back slightly during the day. Bitcoin reached an intraday peak of approximately $100,131 before retracing to just below the big figure around $99,300 thereafter.
Despite yesterday’s dips, the cryptocurrency is still up by more than 30% since hitting a trough in April, a time when President Trump’s aggressive tariffs unsettled global risk assets. Encouragement from trade talks has piqued investor interest, reinvigorating risk appetite in various markets. Treasury Secretary’s latest statements seem aimed at easing tariff pressures, which many think has contributed positively to market dynamics.
Moreover, the renewed interest in exchange-traded funds (ETFs) has been an important driver for Bitcoin’s current rally. Specifically, spot Bitcoin ETFs drew in $142 million in net inflows on Wednesday, reversing earlier outflows and showcasing institutional enthusiasm for Bitcoin again. This return to inflow signals an encouraging shift following a period of uncertainty due to previous market movements.
In terms of macroeconomic context, the steady interest rates around 4.25%-4.50% have alleviated significant concerns for risk assets according to eToro and Wincent’s market strategists. With this backdrop, Bitcoin’s recent price surge has also resulted in nearly $300 million in short liquidations on major derivative platforms, with around $116 million worth linked solely to Bitcoin positions. Large-cap rivals like Ether and Dogecoin also saw upward momentum, with Ether briefly hitting the $2,000 mark and Dogecoin climbing above $0.18.
Looking ahead, forecasts regarding Bitcoin’s price are ramping up. A digital-asset leader at Standard Chartered suggested that current projections could underestimate Bitcoin’s potential, especially if geopolitical tensions continue discouraging investments in U.S. equities. Meanwhile, even as volatility seems muted — with the 30-day historical volume falling to levels not seen in 18 months — Bitcoin’s correlation with the S&P 500 is nearing 0.9, underscoring how global economic shocks might still threaten this rally’s durability.
