In Friday morning trading in Asia, the price of Bitcoin (BTC) unexpectedly surged to over $103,000, marking a historic turning point for the crypto market. Behind this strong breakout is a combination of expectations for interest rate cuts, institutional money returning, and optimism from the U.S.-UK trade deal.
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3 main factors driving the strong increase in Bitcoin's price
1. Expectations of interest rate cuts from the Fed
Although the U.S. Federal Reserve (Fed) did not adjust interest rates this week, the market is heavily betting on the Fed cutting rates in July.
• According to the CME FedWatch tool, there is a 70% chance of an interest rate cut in July, and a 95% chance of at least one cut before October.
• President Donald Trump is also increasing pressure on the Fed, criticizing Chairman Jerome Powell as 'an idiot' and stating that cutting interest rates would be 'jet fuel' for the economy.
2. Signals of institutional money returning to the crypto market
The April report from ARK Invest shows:
• 29,800 BTC have been poured into Bitcoin spot ETFs in the U.S. – the highest level since last November.
• The amount of Bitcoin on exchanges has dropped to just 14%, the lowest level since 2018, indicating an increasing long-term holding sentiment.
3. Optimism from the U.S.-UK trade deal
President Trump just announced a new trade deal with the UK – the first deal since his re-election. Although many experts believe this is just a symbolic move, the market still reacted positively due to expectations of reduced global trade tensions.
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Altcoins are all experiencing strong price increases
Along with Bitcoin, the altcoin market is also 'booming':
• Ethereum (ETH) increased by 20%, surpassing $2,200 for the first time since March.
• Solana (SOL) and Cardano (ADA) both rose over 10% in the past 24 hours.
• Meanwhile, gold fell more than 2%, indicating that some capital is shifting from traditional assets to crypto.
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Where will the crypto market go?
According to QCP Capital, the inflow of money into Bitcoin call options expiring in May and June is increasing sharply, reflecting expectations of continued price growth. However, they also warn that:
“Unless Bitcoin can close a daily candle above $100,000, chasing the current bullish momentum still carries risks.”
With Bitcoin having surpassed the $103,000 mark, the market may witness more repositioning from investors, especially as Trump continues to push for new trade deals and interest rates are likely to decrease in the coming months.
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Impact on Binance users and crypto investors
This event serves as a strong reminder that changes in monetary policy, geopolitical issues, and institutional money sentiment can create extreme volatility in the crypto market. Binance users and investors need to closely monitor macroeconomic signals as well as international political factors – especially the actions of President Trump and the U.S. Federal Reserve.
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Risk warning: The cryptocurrency market is always subject to high volatility and risk. Users should carefully assess information and not invest beyond their capacity for loss. Global political and financial events can quickly and unpredictably impact the prices of digital assets.
