Bitcoin price surge approaches the $100,000 mark following a breakthrough of a 10-week high. The market’s largest cryptocurrency, Bitcoin, is once again approaching the $100,000 milestone, following a significant rally that has propelled the cryptocurrency to its highest price since late February. Following the downward pressure linked to Donald Trump’s tariff policies, which prompted a sell-off in both the stock and digital asset markets, Bitcoin’s resurgence highlights a renewed bullish sentiment among investors.
Bitcoin experiences a resurgence, marked by $3.2 billion in inflows from ETFs. As the first quarter of the year concluded, Bitcoin experienced a significant downturn, plummeting by 30% to around $74,000 after reaching an all-time high of roughly $109,000 on January 20, which aligned with Trump’s second inauguration as President of the United States.
However, the market has observed Bitcoin ascend by as much as 3.1%, achieving a weekly peak of $97,483, which represents the highest point since February 21. The most recent occasion on which Bitcoin surpassed the $100,000 mark occurred on February 7. This upward movement occurs alongside a transformation in market dynamics, especially within the spot markets, where demand has risen. This indicates a shift towards momentum trading, as opposed to the earlier trend predominantly influenced by macroeconomic elements like inflation and tariffs.
Exchange-traded funds (ETFs) that track Bitcoin and Ethereum (ETH) have seen considerable inflows, with more than $3.2 billion entering the market in the past week alone. Significantly, BlackRock’s Bitcoin Trust ETF recorded nearly $1.5 billion in inflows, representing its highest weekly intake for the year, as reported by Bloomberg. ETH Aims for a Rebound Toward $2,000
The market has witnessed a notable increase in demand for upside options, particularly with call options at the $100,000 strike price showing the highest open interest across multiple expiration dates, as reported by Coinglass and data from the leading crypto options exchange, Deribit. “Market sentiment has broadly shifted in favor of momentum-based trades fueled by spot demand, as BTC breaches levels not seen since early February,” stated Chris Newhouse, director of research at Ergonia, a decentralized finance trading firm. “BTC continues to shift between correlations with gold and equities, highlighting a more nuanced relationship with macroeconomic factors balanced by short-term momentum and spot demand,” Newhouse further stated.
Ethereum has demonstrated a consistent recovery over the past week, solidifying its position as a significant entity in the decentralized finance sector and smart contract platforms, while reclaiming the ground it lost in the first quarter of the year. The enhancements resulting from Ethereum’s scalability upgrades, particularly the shift to Ethereum 2.0, have significantly improved performance, thereby increasing the platform’s appeal to both developers and users.
Nevertheless, this has not resulted in year-to-date gains for the second largest cryptocurrency relative to its counterparts, with losses reaching as high as 36% during this timeframe. Notwithstanding this, the price of ETH has experienced a 14% increase over the past fourteen days, reclaiming the $1,800 mark as a significant support level, which enhances the prospects for additional recovery towards $2,000.