Bitcoin has surged past the $100,000 mark, reclaiming its highest price level since February, as speculation grows over a potential U.S.-China trade deal and ongoing shifts in macroeconomic policy.
Per CoinGecko data, Bitcoin crossed $100,000 and holds firm around $100,350 at the time of this report, reflecting strong resistance at this psychological threshold.
The latest rally follows U.S. President Donald Trump’s social media post teasing a “major trade deal,” which, if confirmed, would mark a diplomatic breakthrough following the economic turbulence caused by his administration’s sweeping tariffs under the “Liberation Day” agenda.
U.S.-China Trade Talks and Federal Reserve Policies Impacting Markets
The U.S. Treasury Secretary, Scott Bessent, is scheduled to travel to Switzerland for key trade discussions with China, marking the first meeting since Trump’s tariff announcement.
Bessent has indicated that talks will focus on “de-escalation” rather than a comprehensive trade agreement, keeping markets on edge.
Meanwhile, Bitcoin’s price action has also been influenced by the Federal Reserve’s decision to maintain interest rates at 4.25% to 4.5%, a move that initially caused Bitcoin to dip to $95,866 before a rapid recovery.
Traders are now closely monitoring central bank policies, with expectations that long-term liquidity shifts could further support cryptocurrency prices.
Institutional Investments and Analyst Projections Fuel Market Optimism
Standard Chartered analyst Geoff Kendrick remains bullish on Bitcoin, forecasting that the cryptocurrency could rise to $120,000 by the end of Q2.
“My specific target of $120,000 for Q2 looks very achievable,” Kendrick noted in a research report shared with Decrypt.
Adding to the optimism, major institutional investors are expected to disclose their Bitcoin exposure next week, including ETF issuers, MicroStrategy, and Wall Street heavyweights. Kendrick pointed to Abu Dhabi’s sovereign wealth fund, which held 4,700 Bitcoin-equivalent positions in IBIT at the end of December, suggesting further accumulation and entry of new long-term buyers into the market.
What you should know
- Sentiment among crypto traders has notably shifted toward bullish optimism, with the Crypto Fear & Greed Index rising to 65 (Greed), up from last week’s Neutral position.
- Further reinforcing Bitcoin’s market strength, spot Bitcoin ETFs saw $142 million in net inflows on Wednesday, reversing $85 million in outflows recorded on Tuesday.
- Ark Invest’s ARKB ETF led the charge, attracting $54.7 million in fresh investments, as tracked by Farside Investors.
With institutional movements, macroeconomic factors, and geopolitical developments aligning, Bitcoin’s price momentum could set the stage for further upside, potentially pushing the cryptocurrency beyond the historic $100K milestone in the days ahead.