Bitcoin Surges 9% to $94,000 on ETF Demand and Fed Flexibility

Bitcoin has been experiencing a significant upward trend, with analysts forecasting that the cryptocurrency could reach targets of $95,000 and $100,000. This optimism is driven by several key factors, including robust demand from U.S. spot Bitcoin ETFs and potential shifts in the market regime.

Bitcoin's price has surged past $94,000, propelled by a combination of macroeconomic relief, strong ETF inflows, and growing expectations that the Federal Reserve will maintain policy flexibility amidst softening economic data. Analysts attribute this rally to cooling inflation signals and renewed institutional demand, with on-chain data indicating accumulation rather than distribution. However, the sustainability of this rally depends on Bitcoin maintaining levels above the $89,000–$90,000 range, supported by strong spot volumes and stable funding rates.

A recent surge in short squeezes has accelerated the price increase, but analysts warn that rising open interest could trigger a near-term pullback if market sentiment becomes overheated. For a true regime change to be signaled, Bitcoin must demonstrate persistent low correlation across varying macro conditions and sustained inflows even when equities retreat. Bitcoin’s dominance, currently around 56%, highlights its evolving role as a store of value, especially as altcoins face regulatory challenges.

Prince Filip Karađorđević of Serbia has also expressed bullish sentiments, predicting an imminent “omega candle” rally that could push BTC well beyond $100,000. He believes that Bitcoin’s deflationary nature ensures its long-term upward trajectory, asserting that its value will always rise over time. According to the “omega candle” concept, once Bitcoin surpasses the $100,000 threshold, its price could accelerate dramatically, potentially rising in daily increments of $100,000.

Supporting this bullish outlook, Bitcoin has rebounded over 9% in the past week, driven by strong demand from U.S. spot Bitcoin ETFs. This surge in demand has been a significant driver of Bitcoin's recent price movements, with analysts noting that ETFs accumulated a substantial amount of BTC in just a few days leading up to April 23.

Bitcoin’s rally has also been influenced by macroeconomic factors, such as President Trump’s clarification that he had no plans to dismiss Federal Reserve Chair Jerome Powell, easing investor fears over Fed independence. Trump’s softer stance on China tariffs further fueled market optimism, helping Bitcoin extend its rally.

Analysts have also noted that Bitcoin may be on the verge of a market regime change as it decouples from traditional equities and strengthens its position as a macro hedge. This shift could signal a new era for Bitcoin, where it is seen as a store of value and a hedge against economic turmoil. However, analysts caution that the rally’s durability hinges on Bitcoin holding above the $89,000–$90,000 range with strong spot volumes and stable funding rates.