Bitcoin climbs past $103,000 as traders respond to rate cut forecasts and rising ETF inflows
Though still below January’s $109,000 top, the world’s greatest digital asset has returned to positive territory for 2025, bouncing back from April lows of about $74,000.
How ETF Inflows and Rate Cuts Helped Bitcoin’s Price Surge
The Bitcoin rally arrives under good circumstances despite continuous cryptocurrency market volatility and specific remaining trade concerns affecting markets.
Expectations of Rate Cuts
With CME’s FedWatch tool indicating 95% odds of easing by October, the Bitcoin rally picked up as markets are now pricing in a 70% probability of a July rate cut. The expected rate reduction has driven Bitcoin price movements and rekindled interest in digital assets and cryptocurrencies.
President Trump said:
“Cutting rates would be like jet fuel for the economy.”
ETF inflows indicate institutional demand.
According to ARK Invest’s April report, Bitcoin’s ETF inflows hit their biggest since November, helping fuel the Bitcoin spike we observe. Indicating more institutional confidence, exchange balances fell to 14%, the lowest since 2018.
Nexo co-founder Antoni Trenchev said this:
“The retaking of $100,000 must go down as one of Bitcoin’s more formidable feats and is a reminder that buying peak fear – just last month Bitcoin was languishing around $74,000 – can be exceptionally lucrative.”
The retaking of $100,000 has to rank among Bitcoin’s more impressive accomplishments and serves as a reminder that purchasing peak fear, just last month, Bitcoin was languishing around $74,000, can be highly profitable.
Trade Deal Impact
The Bitcoin boom coincided with a U.S.-UK trade deal that has calmed market concerns following months of uncertainty. This cryptocurrency market volatility drop followed significant drops between February and April.
Economist Justin Wolfers said:
“The economic reality of this is basically… very, very small.”
Notwithstanding this evaluation, markets have welcomed any indication of reduced trade conflicts.
Outlook and Momentum
Strong momentum in Bitcoin price trends suggests the present surge is sustainable. Long-term holders are countering individual investors’ and short-term traders’ selling pressure.
QCP Capital noted:
“Until Bitcoin can close above the $100,000 handle on the daily, we see limited reward in chasing momentum at current levels.”
The current surge of Bitcoins through the critical $100,000 milestone has been enhanced by the hope that rate reductions are just around the corner, with Bitcoin ETF inflows and a favorable trade sentiment angle coming together. The degree of volatility in the cryptocurrency market, which could affect active price movement in the coming few weeks, keeps analysts on edge.
