The price of Bitcoin has strongly broken through the $100,000 mark. This milestone is the result of the interweaving and resonance of many complex factors, including the global economic situation, financial institution layout, market liquidity, macro-policy orientation and market sentiment.
As early as the end of April, Bitcoin began to decouple from the U.S. stock market, bucking the trend of the U.S. stock market and developing an independent trend, which laid the groundwork for Bitcoin to return to $100,000.
First, the most direct reason is the continuous purchase by institutions. At the end of 2024, the asset size of BlackRock Bitcoin ETF (IBIT) reached US$34.3 billion, surpassing the US$33 billion of iShares Gold Trust (IAU). This signal shows that traditional institutions' long-term confidence in Bitcoin is gradually increasing, laying the groundwork for Bitcoin's repricing. Companies such as Strategy, Thumzup, and Metaplanet continue to increase their holdings of Bitcoin, further consolidating the buyer power of the market, attracting more incremental funds to enter the market, and providing support for the rise in Bitcoin prices.
In addition, the liquidity of the crypto market is also quietly changing. According to statistics from the blockchain data platform CoinGecko, the additional issuance of USDT in April 2025 will reach 5 billion US dollars, making the funds for the crypto market more abundant. During this rise in Bitcoin, there was no previous situation where Bitcoin sucked blood from altcoins and caused the altcoins to fall, but a general market enthusiasm scene appeared. The increase in USDT is related to the stablecoin bill that the United States will implement this year. It is expected that with the advancement of the stablecoin bill, the amount of USDT will continue to increase in the future.
Institutional holdings and an increase in overall liquidity in the crypto market are prerequisites for Bitcoin to break through $100,000, and what has fueled this result is a turn for the better in policy direction.
On the evening of May 6, New Hampshire Governor Kelly Ayotte officially signed HB 302, announcing that the state will establish a "strategic bitcoin reserve" to allow the state's treasury department to invest no more than 5% of public funds in precious metals and digital assets with a market value of more than $500 billion (currently only Bitcoin meets the criteria). The Arizona legislature passed the Strategic Digital Asset Reserve Act (SB1373), allowing 10% of public funds to be invested in digital assets such as Bitcoin. Although this initiative has not yet been launched with substantial funds, it will undoubtedly greatly enhance market confidence.
In addition, on May 8 local time, Trump announced that the United States and the United Kingdom had reached a new trade agreement to partially withdraw tariffs in specific areas. Previously, the global market was under pressure, both the stock market and the crypto market, mainly due to the panic caused by the tariff war. Now this news has made the market believe that the impact of the tariff war will gradually weaken, which in turn triggered a violent rise in the price of Bitcoin.
Looking ahead, expectations for a Fed rate cut in the second half of the year are growing. Although there is still huge uncertainty about rate cuts in June and July, expectations that the Fed may cut interest rates twice this year have not changed, so market expectations will gradually increase over time.
