Bitcoin Surges 1.3% to $103,862.5 on U.S. Inflation Data, Trade Truce

Bitcoin (BTC) has reached a new milestone, surging to $103,862.5, marking a 1.3% increase. This surge comes on the heels of positive U.S. inflation data, which has bolstered expectations for potential interest rate cuts by the Federal Reserve. The Consumer Price Index (CPI) for April 2025 came in at 2.3% year-over-year, lower than the market's anticipated 2.4%. This lower-than-expected inflation rate has eased concerns about the inflationary impact of trade tariffs, creating a more favorable environment for riskier assets like Bitcoin.

The temporary trade truce between the United States and China has also played a significant role in Bitcoin's recent price movement. Both countries have agreed to roll back tariffs for a 90-day period, with the U.S. reducing its tariff on Chinese goods from 145% to 30%, and China lowering its retaliatory tariff from 125% to 10%. This agreement has helped to calm fears of a global economic slowdown, encouraging investors to move into higher-risk assets like cryptocurrencies.

The positive market sentiment is reflected in various indicators. The Bitcoin Bull Score Index has jumped to 80, its highest reading in 2025, indicating rising spot demand outpacing supply. Similarly, the Bitcoin Fear & Greed Index has been climbing and currently sits at 53.3%, though it remains below the “overloaded” zone of 80% or higher. These indicators suggest a growing optimism among investors, which has contributed to Bitcoin's price surge.

While Bitcoin has shown steady gains, altcoins have registered even more impressive performance. Ethereum (ETH), the second-largest cryptocurrency by market cap, surged 8.7% to reach $2,667.30. Other major cryptocurrencies also posted strong gains, with XRP rising 3.6% to $2.5869, Solana jumping 7%, Cardano advancing 4.8%, and Polygon adding 6% to its value. Meme tokens were not left behind in this rally, with Dogecoin surging 9.5% and the Trump-themed cryptocurrency $TRUMP rising 8.4%.

Analysts remain cautiously optimistic about Bitcoin’s prospects, with some models suggesting that the cryptocurrency could reach $135,000 within 100 days. This prediction is based on the current low VIX levels, which historically correlate with increased investor confidence in riskier assets like Bitcoin. The latest Bitcoin price of $103,862.5 represents a consolidation above the $100,000 level, with the improved economic outlook and reduced market volatility providing support for further potential gains.