Bitcoin has recently surged past $105,000, marking its highest level since February 2025. This upward momentum is driven by several key factors:
1. Institutional Investment and ETF Inflows
Institutional investors have significantly increased their Bitcoin holdings. Notably, Strategy (formerly MicroStrategy) acquired 13,390 BTC for $1.34 billion, bringing its total holdings to 568,840 BTC. Additionally, April saw $2.9 billion in inflows into Bitcoin ETFs, reversing previous outflows and indicating renewed institutional confidence.
2. Favorable Macroeconomic Developments
The announcement of a U.S.-China trade deal has bolstered investor confidence, contributing to Bitcoin’s price increase. Furthermore, easing global tariffs and anticipation of potential U.S. interest rate cuts have created a conducive environment for risk assets like Bitcoin.
3. Regulatory and Political Support
The U.S. government’s establishment of a Strategic Bitcoin Reserve and a Digital Asset Stockpile reflects growing institutional acceptance of cryptocurrencies. Additionally, President Trump’s pro-crypto stance, including plans to make the U.S. the global crypto capital, has positively influenced market sentiment.
4. Technical Indicators and Market Dynamics
Bitcoin is trading above its 20-day and 50-day moving averages, signaling bullish momentum. A “golden cross” pattern is forming, suggesting potential for further gains. Moreover, significant accumulation by large holders, or “whales,” with entities holding over 10,000 BTC increasing their positions, indicates strong bullish sentiment.
As of now, Bitcoin is trading at approximately $105,466, reflecting a 2.5% increase over the past 24 hours.
