Bitcoin has once again crossed the $100,000 mark. This milestone moment is not only a victory for the digital asset world but also the result of the resonance of multiple factors including financial markets, macroeconomics, policy direction, and institutional strength. Since the end of April, Bitcoin has shown an 'independent trend against U.S. stocks', laying the groundwork for a breakthrough. This rise is backed by more complex and far-reaching logic.
Institutional increase: Signals of traditional finance 'betting' on Bitcoin
The most intuitive driving force comes from traditional financial institutions continuously increasing their Bitcoin holdings. According to the latest data, by the end of 2024, BlackRock's Bitcoin spot ETF (IBIT) has reached an asset scale of $34.3 billion, surpassing its gold ETF—the iShares Gold Trust (IAU) at $33 billion. This change marks the first time Bitcoin has 'overtaken' gold in the traditional financial ETF market, stepping out of the metaphor of 'digital gold' and entering the core of institutional asset allocation as a true digital asset.
At the same time, strategic companies like Strategy, Thumzup, and Metaplanet have continued to increase their Bitcoin holdings, forming a unique 'corporate holding alliance'. Just Strategy alone has recently surpassed 550,000 Bitcoins, accounting for over 2% of the circulating supply. This 'corporate reserves + ETF' dual drive has significantly enhanced the buying power of the market, providing solid support for Bitcoin's price and giving new funds a 'comforting pill' to enter.
Liquidity warming: The 'faucet' of the crypto market is reopening
In addition to the continuous inflow of institutional funds, **the liquidity environment in the crypto market is also quietly improving.** According to CoinGecko statistics, by April 2025, the issuance of USDT reached as high as $5 billion, injecting fresh 'ammunition' into the market. Unlike the 'blood-sucking effect' of mainstream coins that followed previous USDT issuances, this time the market presented a pattern of universal rise, with not only Bitcoin leading but also altcoins and the DeFi sector rebounding simultaneously, showing active liquidity flow across the entire crypto ecosystem.
The recent issuance of USDT is closely related to the upcoming 'stablecoin regulation bill' in the U.S. The industry generally expects that as the regulatory framework is established, the stablecoin market will further expand, and the increase in USDT supply may become a long-term trend, providing sustained liquidity support for the crypto market. Liquidity is the underlying logic that cannot be ignored for asset price increases, and this time, Bitcoin has welcomed the 'issuance dividend under policy recognition.'
Policy warming: Confidence boost from local legislation to trade agreements
What’s more noteworthy is that positive signals from the policy front are strengthening. On May 6th, New Hampshire Governor Kelly Ayotte signed HB302, allowing the state treasury to invest up to 5% of public funds in 'precious metals and digital assets with a market value exceeding $500 billion'. Currently, the only digital asset that meets this standard is Bitcoin. Almost simultaneously, the Arizona state legislature also passed a (strategic digital asset reserve bill), allowing 10% of public funds to be allocated to Bitcoin and other digital assets.
Although these legislations have not yet directly released substantial funds, their signaling significance is extremely critical. **This means Bitcoin has been included for the first time in the legitimate discussion category of 'public fund allocation',** laying a legal foundation for more institutions to adopt it in the future and bringing an unquantifiable boost to market sentiment.
At the same time, U.S. President Trump announced a new trade agreement with the UK, partially withdrawing tariffs in specific areas. Recently, global markets have faced pressure, with stock markets and crypto markets performing poorly due to the shadow of the trade war. This policy turning point has given the market hope for 'de-risking', further releasing Bitcoin's risk appetite.
Macroeconomic environment: The 'pusher' effect of interest rate cut expectations
Looking at the macro perspective, **the expectation of the Federal Reserve's monetary policy remains a long-term driving force for the market.** Although there is uncertainty about whether interest rates will be cut in June and July, the tone for two rate cuts within the year still exists. As time goes by, the market's expectation for loose monetary policy is heating up, and the crypto market has always been particularly sensitive to changes in the liquidity environment. It is under this expectation of 'liquidity easing - funds flowing back to risk assets' that Bitcoin found an important catalyst for another breakthrough.
What does Bitcoin's breakthrough mean?
This breakthrough of $100,000 is not only a repricing of Bitcoin's scarcity but also a sign of profound changes in global asset allocation logic. As gold, bonds, and fiat currencies gradually face impacts from interest rates, geopolitics, inflation, and other factors, more and more funds are beginning to seek 'non-traditional' safe-haven assets, with Bitcoin becoming part of the alternative choice. Whether as digital gold or as an emerging 'decentralized asset', Bitcoin's role is transitioning from the periphery to the mainstream view of asset allocation.
However, this value reassessment is not unidirectionally optimistic. Bitcoin's price in the future will still be affected by a combination of multidimensional factors including global macroeconomics, policy regulations, liquidity environment, and market sentiment. Each variable's change may become a trigger for severe price fluctuations.
In this complex and changeable environment, how to seize the opportunity?
In the face of the increasingly complex influencing factors in the crypto market, **the speed, depth, and breadth of information acquisition and processing have become the 'core competency' that investors must enhance.** AI investment research tools like Mlion.ai, which integrate on-chain data, news analysis, sentiment analysis, and policy tracking, can help users establish connections between 'institutional actions, on-chain capital flows, and policy dynamics', providing a more sensitive and comprehensive market perspective.
From monitoring large on-chain transfers to tracking ETF inflows and outflows, and interpreting policy signals, Mlion.ai not only helps users 'see the data' but also uses AI to 'understand the data', finding real trading opportunities between the market's 'narratives' and 'facts'.
Written at the end
Bitcoin breaking through $100,000 is not the end, but a new stage in the journey of value discovery. Institutional strength, policy environment, and liquidity conditions have jointly shaped this moment and also buried more variables for future trends.
Whether you are a long-term holder or a short-term trader, the real challenge is: how to not get lost in emotions while navigating the complex macro cycles and narrative changes, and not fall behind the trends?
Perhaps this is the 'ultimate proposition' that Bitcoin brings to all participants.
Disclaimer: The above content is for informational sharing only and does not constitute any investment advice!