Bitcoin is back in the spotlight as it trades close to its all-time high around $104,000, just 5 percent below its peak of $109,350. The rally is picking up pace with better US-China trade talks, steady ETF inflows, and hopes of lower inflation lifting market sentiment. After falling to $75000 in April, Bitcoin has bounced back strongly, gaining nearly 10% in just a week.
U.S.-China Deal Calms Markets
The rally gained momentum after the U.S. and China struck a trade agreement in Geneva, confirmed by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. A joint statement is expected soon. The deal follows months of tariff hikes, which had raised inflation concerns. Now, with tensions easing, investors are optimistic that April’s CPI data won’t reignite inflation fears.
CPI Could Fuel Further Gains
Meanwhile, April’s CPI is expected to show a slight slowdown, easing to 2.3% from 2.4% in March, according to RBC. Core CPI is expected to hold steady at 2.8%. Markus Thielen from 10x Research said if the numbers come in as expected, the market could interpret the report as bullish, possibly pushing Bitcoin beyond its previous high. Even a slightly hotter CPI might not hurt sentiment, as it would be seen as outdated, reflecting the impact of now-defused tariffs.
Continuous ETF Inflows
BlackRock’s spot Bitcoin ETF has seen 20 straight days of inflows, attracting over $5 billion. This, combined with the Fed’s decision to hold interest rates steady, has kept investor sentiment high. Chairman Powell even noted that the tariff’s impact on inflation is likely short-lived.
Altcoins Join the Rally
Ethereum posted its best weekly gain since 2020, jumping 39% to $2,500. Dogecoin, ADA, XRP, and Solana also surged significantly. HTX Research reported that market conditions remain healthy, with Bitcoin options volatility stable and leverage still under control. Pi Coin jumped 33% to $1.25, its trading volume also spiked 280% to $1.32 billion.
Price Targets Heat Up
Analysts are now forecasting higher targets. AlphaBTC sees a test of $106K soon, while Egrag Crypto suggests $170K as a cycle top if BTC clears $109K. Former Binance CEO CZ is even more bullish, saying Bitcoin could hit $500K or $1 million this cycle.
With no signs of overheating and strong catalysts in play, Bitcoin’s next breakout may just be around the corner.
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FAQs
Bitcoin’s price is up due to positive US-China trade talks, continuous ETF inflows, and expectations of a slow CPI report easing inflation fears.
Yes, BlackRock’s Bitcoin ETF has seen 20 days of inflows, contributing to high investor sentiment and supporting Bitcoin’s price surge.
As per Coinpedia’s BTC price prediction, the Bitcoin price could peak at $168k this year if the bullish sentiment sustains.
Analysts predict Bitcoin may test $106K soon, with some forecasting up to $170K or even $500K if it clears $109K.
