$BTC

Bitcoin Revisits $105,000 as US Inflation Cools

While XRP advanced on legal optimism, bitcoin (BTC) revisited $105,000 for the second time since January 31, 2025.

Cooler-than-expected headline US inflation drove demand for risk assets, including BTC. Headline inflation eased from 2.4% in March to 2.3% in April, supporting a more dovish Fed stance. However, core inflation held at 2.8%, capping gains. The Nasdaq Composite Index rallied 1.61% on May 13.

US BTC-Spot ETF Market Eyes Five-Day Inflow Streak

Improved sentiment positioned the BTC-spot ETF market up for a five-day inflow streak. Notably, BlackRock’s (BLK) iShares Bitcoin Trust (IBIT) could extend its inflow streak to 21 sessions.

According to Farside Investors, the US BTC-spot ETF market reported net inflows of $5.2 million on May 12. On May 13, Fidelity Wise Origin Bitcoin Fund (FBTC) had net outflows of $91.4 million. However, nine of the eleven issuers saw zero net flows, leaving it to IBIT to keep the broader inflow streak alive.

BTC Price Outlook: Trade Developments, the Fed, and ETF Flows in Focus

BTC gained 1.35% on Tuesday, May 13, reversing Monday’s 1.04% loss to settle at $104,120. Significantly, BTC held above $100,000 for the fifth consecutive session, underscoring strong underlying demand.

Short-term price direction will depend on trade developments, Fed signals, ETF flow trends, and legislative developments.

Potential scenarios:

Bearish Scenario: Rising trade tensions, hawkish Fed signals, political resistance to the Bitcoin Act, and ETF outflows. Bearish sentiment could send BTC toward $90,000.

Bullish Scenario: Easing trade tensions, dovish Fed outlook, pro-crypto legislation, and ETF inflows. Bullish sentiment could drive BTC above the record high of $109,312.

Notably, Senator Cynthia Lummis recently reintroduced the Bitcoin Act, proposing the US acquire one million BTC over five years with a 20-year hold. If passed, the move could significantly tighten supply and drive prices higher.