The market\u2019s largest cryptocurrency, Bitcoin (BTC), is once again nearing the $100,000 milestone, following a significant rally that has seen the cryptocurrency reach its highest price since late February.\u00a0<\/p>\n
After experiencing downward pressure <\/a>attributed to Donald Trump\u2019s tariff policies, which triggered a sell-off across both the stock and digital asset markets, Bitcoin\u2019s resurgence showcases a renewed bullish appetite among investors.<\/p>\n To close the first quarter of the year, Bitcoin faced a steep decline, dropping as much as 30% toward $74,000 after hitting a record high of approximately $109,000 on January 20, coinciding with Trump\u2019s second inauguration as President of the United States.\u00a0<\/p>\n However, the market has seen Bitcoin climb as much as 3.1% to reach a weekly high of $97,483, marking the highest level since February 21. The last time Bitcoin crossed the $100,000 threshold was on February 7.\u00a0<\/p>\n This upward movement comes amid a shift in market dynamics, particularly in the spot markets, where demand <\/a>has increased. This suggests a transition towards momentum trading, rather than the previous trend driven primarily by macroeconomic factors such as inflation and tariffs.<\/p>\n Exchange-traded funds (ETFs) tracking Bitcoin and Ethereum (ETH) have attracted significant inflows, with over $3.2 billion entering the market last week alone. Notably, BlackRock\u2019s Bitcoin Trust ETF (IBIT) recorded nearly $1.5 billion in inflows, marking its highest weekly intake for the year, according to data <\/a>from Bloomberg.<\/p>\n Demand for upside options has also surged in the market, with call options at the $100,000 strike price exhibiting the most open interest across various expiration dates, according to Coinglass and data from the largest crypto options exchange, Deribit.<\/p>\n \u201cMarket sentiment has broadly shifted in favor of momentum-based trades fueled by spot demand, as BTC breaches levels not seen since early February,\u201d stated Chris Newhouse, director of research at Ergonia, a decentralized finance <\/a>(DeFi) trading firm.\u00a0<\/p>\n \u201cBTC continues to shift between correlations with gold and equities, highlighting a more nuanced relationship with macroeconomic factors balanced by short-term momentum and spot demand,\u201d Newhouse further told Bloomberg.<\/p>\n Ethereum, on the other hand, has shown a steady recovery over the past week, reinforcing its status as a key player in the decentralized finance sector and smart contract platforms, and regaining the foothold lost in the first quarter of the year.<\/p>\n Improvements from Ethereum\u2019s scalability upgrades, including the transition to Ethereum 2.0, have boosted performance and made the platform more attractive to developers and users.<\/p>\nBitcoin Rebounds With $3.2 Billion In ETF Inflows<\/h2>\n
ETH Eyes Recovery Toward $2,000<\/h2>\n