Bitcoin breaks through $105,000 intraday, market volatility draws attention

On May 12, 2025, the price of Bitcoin continued to fluctuate, reaching $105,000 in the morning, with an intraday increase of 0.85%, extending the recent upward trend driven by macroeconomic benefits. However, earlier in the morning, the cryptocurrency market experienced sharp fluctuations, with mainstream coins like Ethereum and Dogecoin collectively plummeting, and Bitcoin temporarily falling back to around $103,000 from $105,000, resulting in over 150,000 investors being liquidated within 24 hours, significantly increasing short-term market correction pressure.

Driving Factors and Market Sentiment

1. Improvement in the macro environment: News of the resumption of China-U.S. trade negotiations and ceasefire talks between Russia and Ukraine has boosted the preference for risk assets, with Bitcoin, as “digital gold,” again becoming a safe-haven choice for funds. Standard Chartered analyst Geoffrey Kendrick previously predicted Bitcoin's target price for the second quarter to be $120,000, but recently stated that “the prediction may be too low,” emphasizing that institutional capital inflows (such as the U.S. Bitcoin ETF attracting $5.3 billion in three weeks) are the core driving force.

2. Technical aspects and market structure: Analysts pointed out that there is psychological resistance at the $100,000 mark, with some traders choosing to take profits, leading to price fluctuations. Additionally, several tokens (such as APT and ARB) will face large-scale unlocks this week, with a total value exceeding $200 million, which may exacerbate market selling pressure.

Future Outlook and Risks

BlackRock CEO Larry Fink is optimistic about Bitcoin's long-term prospects, predicting its market value could reach $10 trillion, with prices expected to break $500,000. However, in the short term, caution is required regarding the market's adjustments to expectations of U.S. Federal Reserve interest rate cuts and potential volatility caused by the release of U.S. CPI data. Investors should pay attention to cross-market correlations, especially the impact of U.S. stock fluctuations on crypto assets, while also implementing risk management.