Bitcoin Breaks $100K Again as Market Shifts, Analysts Eye Stronger Bullish Momentum

Bitcoin (BTC) has surged back above the $100,000 mark, climbing 33% in just a few weeks after dipping to $75,000 in the wake of President Trump’s early April tariff announcement. This move marks yet another unexpected turn in Bitcoin’s volatile journey, as it recovers and builds momentum.

To revisit the story, Bitcoin initially surpassed $100,000 in December, driven by optimism following Trump’s victory in the November elections. The price then peaked at over $109,000 in January, just ahead of his inauguration. However, the rally lost steam shortly after, with Bitcoin steadily declining to nearly $75,000 following Trump’s early April tariffs on U.S. trading partners.

The altcoin market was hit even harder, with tokens like Solana (SOL) and Ether (ETH) seeing declines of over 60% from their all-time highs. But after the initial shock, both Bitcoin and traditional markets have bounced back, with the Nasdaq and S&P 500 rising above pre-tariff levels.

Bitcoin’s current surge back above $100,000 is likely fueled by optimism surrounding a potential U.S.-U.K. trade agreement, signaling that traders are starting to look beyond the short-term impacts of tariff concerns. This shift in sentiment is encouraging buying activity across both crypto and traditional financial markets.

Market Flows and Institutional Demand Drive Bitcoin’s Rise

Geoff Kendrick from Standard Chartered believes Bitcoin’s recent recovery is driven primarily by substantial flows into the market. “The focus now is on the flow of capital into Bitcoin, and it’s coming from a variety of sources,” Kendrick remarked.

He highlighted the growing inflows into Bitcoin’s spot ETFs, noting that while some market participants question the validity of these flows due to hedging strategies like basis trades, the lack of significant movement in these trades indicates genuine institutional interest in Bitcoin.

The 13F filings set to be released in the coming week will offer further insight into institutional Bitcoin holdings, including major investors like MicroStrategy (MSTR), which is known for its sizable Bitcoin position. Kendrick expects these filings to confirm that institutional players are continuing to increase their exposure to the digital asset.

Given the latest developments and the growing demand for Bitcoin, Kendrick has adjusted his price target for Bitcoin, acknowledging that his earlier forecast of $120,000 for Q2 may be too low. With the shift in market dynamics and increasing institutional support, Bitcoin could be on track for even higher price levels in the near term.