Bitcoin Holds Above $100,000 as Ether Sees Best Week Since 2021

Bitcoin holds above $100,000, up 2% to $103,249.99. Ether rallies to its best week since 2021, rising 10%. The risk-on sentiment bled into altcoins, with Solana token increasing 14.3% this week. Bitcoin's market structure changed with the introduction of spot bitcoin ETFs, with demand coming from retirement accounts, macro funds, and corporate bonds. Altcoins still rely on crypto-native, risk-on capital, which hasn't grown alongside the greater tech sector due to the current interest rate environment.

Bitcoin (BTC) has reclaimed the $100,000 price level for the first time since February, as the U.S. gears up for trade talks with China and prepares to unveil a deal with the UK. According to data from CoinGecko, the leading cryptocurrency briefly crossed $100,000 before dropping back to its current price of around $99,500, up 2.6% on the day and 3.5% on the week [1].

A "major trade deal" teased by U.S. President Donald Trump on social media platform Truth Social, would mark a diplomatic milestone following the economic turmoil sparked by sweeping tariffs imposed as part of his "Liberation Day" agenda. The news comes as U.S. Treasury Secretary Scott Bessent prepares to travel to Switzerland for talks with China, the first meeting to discuss the trade war since Trump's tariffs announcement. Bessent has suggested that the talks would be about "de-escalation," rather than a comprehensive trade deal [1].

Standard Chartered analyst Geoff Kendrick believes Bitcoin will reach $120,000 by the end of Q2, potentially influenced by Federal Reserve interest rate decisions. Institutional investment continues to grow with positive ETF inflows of $142 million on Wednesday, as global institutions increasingly view Bitcoin as a way to diversify from USD assets [1].

Bitcoin rallied from around $94,000 earlier in this week, following the Federal Reserve's policy update Wednesday in which it left interest rates unchanged. Fed Chair Jerome Powell pointed to "heightened uncertainty" while lauding the "solid position" of the U.S. economy [1]. Marco Lim, managing director at Solowin Holdings and founding partner of MaiCapital, told Decrypt that Bitcoin's ability to reach $120,000 has a lot to do with how the Fed handles policy in the coming months [1].

Sentiment among crypto traders has swung to the upside, with the Crypto Fear and Greed Index at 65, signalling Greed, up from last week's Neutral position. "The crypto Fear & Greed Index reflects heightened optimism among investors, reinforcing a bullish market sentiment," LMAX Group market strategist Joel Kruger said in a note shared with Decrypt [1].

Bitcoin ETFs saw $117M inflow on May 8, led by IBIT’s $69M as prices surged across funds, while others report zero inflow [2]. IBIT led all spot ETFs with a $69M daily inflow and 3.09% BTC share. BTCW, BRRR, and others surged over 5% despite no new inflows. Total ETF inflows hit $117M with $3.87B in daily trading volume [2].

References:
[1] https://decrypt.co/318527/bitcoin-price-100000-first-time-february
[2] https://cryptonewsland.com/spot-bitcoin-etfs-rally-with-117m-inflow-as-ib/