Bitcoin $BTC smashed through a new all-time high of $109,000 on Wednesday, marking a blistering 25% surge over the past month. The rally, fueled by favorable macroeconomic tailwinds and President Trump’s pivot away from a global trade war, has ignited fresh optimism in the crypto market.
ETF Inflows and Market Momentum
This week alone, Bitcoin exchange-traded funds (ETFs) raked in nearly $1 billion in inflows, signaling robust investor confidence. The cryptocurrency, which dipped to $75,000 in April, has staged a remarkable recovery, with traders now eyeing loftier targets. Options data from the Deribit exchange shows a surge in bets on Bitcoin hitting $300,000 by June a move that would catapult its market cap beyond $6 trillion. The $300,000 call option is the second most popular, trailing only the $110,000 strike price.
Technical indicators are flashing bullish signals. The Relative Strength Index (RSI) remains above the overbought threshold on the daily chart, with its average trendline acting as a sturdy support. Meanwhile, the Simple Moving Average (SMA) continues to bolster Bitcoin’s price chart, hinting at sustained upward momentum in the near term.
Altcoins Join the Party
Bitcoin’s rally isn’t a solo act. Ethereum and Solana have climbed 4% each, while Cardano gained 5%. Dogecoin, the meme coin darling, outshone them all with a 6% spike. With Bitcoin’s market cap now at $2.16 trillion and a 24-hour trading volume of $59.71 billion, the crypto market is buzzing with activity.
What’s Next for Bitcoin?
If bullish conditions persist, analysts predict Bitcoin could test $112,500 soon, with some even eyeing $120,000 in the coming months. However, caution lingers heightened liquidations could drag prices back to $107,000 or even the $105,000 support level.
Institutional and Political Tailwinds
Bitcoin’s surge coincides with growing institutional interest. Government entities are increasing their indirect exposure to the asset, and Standard Chartered’s Geoff Kendrick remains bullish, projecting Bitcoin could hit $500,000 before the end of Trump’s term. With macroeconomic conditions aligning and trader optimism at fever pitch, Bitcoin’s meteoric rise shows no signs of slowing yet.
