Bitcoin Surges Above $104K, Fueled by Positive Inflation Data, Trump’s Market Optimism, and Coinbase’s S&P 500 Inclusion

Bitcoin (BTC) surged past $104,000 on Tuesday, driven by optimistic inflation data, President Trump’s upbeat market outlook, and Coinbase’s inclusion in the prestigious S&P 500 index.

April’s Consumer Price Index (CPI) report came in cooler than expected, easing fears of sustained inflation and potentially reducing the Federal Reserve’s concerns over tariff-driven price hikes. Federal Reserve Chair Jerome Powell’s scheduled speech on Thursday is anticipated to provide additional insights into future monetary policy.

The positive mood was further bolstered by former President Donald Trump’s comments at the Saudi-U.S. Investment Forum in Riyadh, where he expressed confidence that markets “could go a lot higher,” providing further optimism.

Bitcoin briefly approached the $105,000 mark before pulling back, trading at approximately $104,400—2.4% higher than 24 hours prior. Altcoins within the CoinDesk 20 Index also saw strong performances, with Ethereum’s Ether (ETH) climbing over 9% to reach $2,700. Restaking protocol Eigenlayer’s governance token and DeFi protocol EtherFi’s token (ETHFI) both saw impressive daily gains of 20-30%.

Stocks continued their recent rally, with the Nasdaq rising by 1.6% and the S&P 500 advancing by 0.75% at the close of the trading session. Coinbase (COIN), listed on Nasdaq, saw its shares spike 24% as it prepares to join the S&P 500 index. Analysts predict that the inclusion could generate up to $16 billion in buying pressure for Coinbase shares.

Institutional Interest and Regulatory Optimism

Market strategist Joel Kruger from LMAX Group pointed out that although the crypto market is taking a brief pause after last week’s gains, the rally shows signs of further momentum. “The market may be taking a breather, but the prevailing sentiment and positive headlines suggest there’s still room for growth in this rally,” Kruger said.

Kruger also highlighted growing institutional interest in cryptocurrency and the shift toward mainstream adoption, with Coinbase’s S&P 500 inclusion serving as a significant milestone for the industry. “With the increasing institutional tailwinds, the prospects for further crypto adoption look strong,” he said.

In addition, Kruger mentioned improving regulatory sentiment, noting that SEC Chair Paul Atkins’ commitment to positioning the U.S. as a global crypto hub could unlock new waves of institutional interest—especially if this policy stance is backed by concrete regulatory clarity.

Paul Howard, senior director at trading firm Wincent, shared a similar outlook, emphasizing that while altcoins are riding the broader market rally, institutional capital will likely be more discerning in its investments. “The current environment is setting the stage for greater institutional involvement, and resilient altcoins may attract more attention,” Howard said via Telegram.

Bitcoin’s Path Toward a New Record

Bitcoin is now within 5% of surpassing its all-time high from January, with analysts from Bitfinex observing that stable funding rates and consistent trading volumes suggest the market isn’t overheating. However, Bitcoin is encountering resistance around the $104,000-$106,000 range, which could lead to a brief consolidation phase. The critical support level is seen around $98,000.

“After Bitcoin’s recent strong performance, we expect a period of consolidation, with a new all-time high potentially pushed back to June as the supply and demand balance stabilizes above $100,000,” Bitfinex analysts stated.

Looking further ahead, Bitfinex analysts remain highly bullish on Bitcoin’s future, projecting a price range of $150,000-$180,000 for 2025-2026.

“Bitcoin’s long-term outlook has never been more promising,” they concluded. “With expanding adoption from sovereign and institutional players, the rise of global ETFs, and positive regulatory shifts in the U.S., Bitcoin is on its way to becoming a key global macro reserve asset.”