Bitcoin Breaks $100K Again After April Setback; Analysts Expect Further Gains
Bitcoin (BTC) has made a remarkable comeback, surging by 33% in just a few weeks, following a steep drop to $75,000 after President Trump’s early April announcement regarding the Liberation Day tariffs. Now back in six-figure territory, Bitcoin continues its trend of surprising the market with its unpredictable moves.
To recap, Bitcoin first breached the $100,000 mark in December, rallying strongly after Trump’s election victory in November. By the time of Trump’s inauguration on January 20, the price had topped $109,000. However, the excitement started to fade as the price began to decline, reaching a low of just under $75,000 in the wake of Trump’s April tariff announcement.
The drop was especially severe for many altcoins, with Solana (SOL) and Ether (ETH), for instance, seeing declines of more than 60% from their peaks. Despite the sharp declines, the market has quickly recovered, with traditional markets like the Nasdaq and S&P 500 also pushing higher, surpassing their pre-tariff levels.
Bitcoin’s latest surge past the $100,000 mark seems to be tied to a potential trade deal between the U.S. and the U.K. As the dust settles from tariff shocks, it’s clear that market sentiment is shifting back toward optimism.
Flows Are Key, Says Analyst
Geoff Kendrick from Standard Chartered emphasized that the driving force behind Bitcoin’s recent rally is all about market flows. “The story for Bitcoin has changed,” he noted, “and now it’s all about the flows. And these flows are coming from multiple sources.”
Kendrick highlighted the significant inflows into spot Bitcoin ETFs, a trend that has been widely reported. Although some observers dismiss these inflows due to offsetting basis trades (where hedge funds short Bitcoin futures and collect small yields), Kendrick pointed out that these basis trades have not increased much during the recent inflow period. This, he argues, indicates that substantial amounts of capital are flowing into the Bitcoin ETFs rather than just speculative trades.
The next key data point for institutional activity will come in a week, when 13F institutional reports begin rolling in. These filings will include information not just about spot Bitcoin ETF holdings, but also about positions in major corporate Bitcoin holders like MicroStrategy (MSTR). Kendrick anticipates that this will provide further confirmation that large institutional players are significantly increasing their Bitcoin allocations.
Kendrick concluded with an apology, acknowledging that his previous $120,000 target for Bitcoin in the second quarter might have been too conservative, given the recent surge and strong flows.
