Bitcoin has once again surpassed the $100,000 mark — the last time such a rate was about three months ago. Thus, the main cryptocurrency demonstrated a sharp reversal that occurred at a time when many market participants did not expect such a quick recovery. Analysts attribute the current growth of the first cryptocurrency to a change in key influencing factors and the influx of significant amounts of capital.
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The world’s largest cryptocurrency by market cap last traded above six figures in December last year, peaking above $109,000 in the hours leading up to Donald Trump’s inauguration on January 20, according to market analysis. However, it began a steady decline after that, CoinDesk recalls, culminating in a drop below $75,000 in April amid panic over Trump’s announcement of tariffs against US trading partners.
The altcoin market was hit much harder back then. For example, Solana (SOL) and Ethereum (ETH) saw a more than 60% drop from their peaks to their troughs. However, prices have since recovered quickly. At the same time, both the cryptocurrency and traditional markets (Nasdaq and S&P 500) have shown growth, having overcome the effects of the tariff shock.
The current break above $100,000 is reportedly linked to the US-UK trade deal. According to analysts, the dominant narrative for Bitcoin has also changed. Standard Chartered analyst Geoff Kendrick noted that capital flows are now the key driver for Bitcoin. “The main driver for Bitcoin has changed again. It’s all about flows now. And they’re coming from different sources,” he said.
Kendrick also pointed to growing interest in spot Bitcoin ETFs, adding that the current influx, unlike past ones, has not been accompanied by an increase in hedge fund volumes trading on the futures spread, which may indicate real interest from institutional investors.