On Thursday, the price of Bitcoin crossed the significant $100,000 threshold, fueled by optimistic sentiments surrounding new trade talks between the United States and China, alongside a resurgence in institutional interest. This mark, which had not been breached since mid-February, was reached during early trading hours, although the price later retreated slightly below the milestone.
During the trading session, Bitcoin peaked at approximately $100,131, while experiencing a low near $95,959. Currently trading around $99,300, Bitcoin is still up over 30% from its lowest point in April, a period when President Trump’s “Liberation Day” tariffs unsettled risk assets.
Key Factors Behind the Bitcoin Price Surge
Renewed hopes for trade détente are playing a significant role, as Treasury Secretary Scott Bessent is set to meet with Chinese officials in Switzerland. This meeting is intended to alleviate tariff tensions, which has sparked a renewed appetite for risk among global investors.
Moreover, there has been a resurgence of institutional investment, with spot Bitcoin exchange-traded funds observing net inflows of $142 million on Wednesday, rebounding from previous outflows and indicating a renewed presence of institutional buyers.
Additionally, the broader macroeconomic landscape is supportive, especially following the Federal Reserve’s recent decision to maintain interest rates between 4.25% and 4.50%. This stabilization has removed a core concern for risk assets, according to insights from market strategists at eToro and Wincent.
Price Predictions Intensify
Geoff Kendrick, the digital-asset chief at Standard Chartered, has reaffirmed his year-end target for Bitcoin at $120,000, suggesting that this projection may even be considered “possibly too conservative” if geopolitical issues continue to divert investments from U.S. equities.
The recent price movements have led to nearly $300 million in short liquidations at major derivatives platforms, resulting in a loss of $116 million in Bitcoin positions, as reported by CoinGlass. This bullish trend has also extended to large-cap altcoins, with Ether returning above $2,000 and Dogecoin crossing the $0.18 mark.
Nevertheless, the market experiences lower volatility, with Bitcoin’s 30-day trading volume resting at an 18-month low. Concurrently, correlations with the S&P 500 have risen close to 0.9, highlighting that macroeconomic shifts could still pose risks to the ongoing rally.
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