Bitcoin has surged past $100,000 for the first time in three months, hitting an intraday high of $101,370. This rally is attributed to improving market sentiment following April's volatility due to trade tariffs. Optimism was further fueled by news of a trade agreement between the U.S. and the UK, which eased investor concerns and encouraged risk-taking. Bitcoin has been closely correlated with other risk assets like stocks during this period.
Institutional interest has played a significant role in Bitcoin's momentum, with inflows into spot Bitcoin ETFs reaching $5.3 billion in the past three weeks. States such as New Hampshire and Arizona have also introduced crypto reserves, although analysts believe Wall Streetās demand is the more powerful driver. Notably, investment firm Strategy plans to invest $84 billion in Bitcoin acquisitions.
Analysts project that Bitcoin could reach $120,000 in the second quarter, though they acknowledge this target may be conservative. However, concerns remain about short-term volatility due to low trading volumes and lingering tariff uncertainty, suggesting caution for traders despite the bullish trend.