Bitcoin Surges 100% to $100,000 on Fed Policy Shift and Institutional Inflows

Bitcoin has forcefully broken through the $100,000 mark, reaching a new high since February. This surge is attributed to several key factors, including continuous fund inflows and a shift in the Federal Reserve's policy. Geoffrey Kendrick, Digital Asset Research Director at Standard Chartered Bank, noted that the previously predicted $120,000 target price "may be too conservative." The market has seen significant inflows, with $5.3 billion flowing into the U.S. Bitcoin spot ETF in the past three weeks. Institutions such as BlackRock and Fidelity are holding over 4.9 million BTC, indicating a strong institutional interest.

The expected shift in the Fed's policy has become a key driver of this round of gains. After the May meeting sent a dovish signal, the market's probability of a rate cut in September rose to 44%, accelerating funds pouring into crypto assets. Multiple U.S. states are advancing crypto reserve bills, with the Bitcoin Strategic Reserve Bill in Texas entering its final voting stage. This further accelerates the policy compliance process and reinforces Bitcoin's "digital gold" attributes. On-chain data shows that whale addresses increased their holdings by 81,000 BTC in three days, with their holdings reaching a historical high. Additionally, publicly traded companies like MicroStrategy allocating 90% of their cash reserves to Bitcoin have had a significant support effect.

Technological upgrades and ecosystem expansions have also injected momentum into the market. After the Ethereum "Pectra Upgrade" was implemented, the staking annualized return rose to above 8%, attracting institutional participation. Active public chain ecosystems like Solana and Sui are witnessing an explosion in the AI+RWA track, with tokens like REVOX Protocol seeing a 330% weekly increase. Altcoins surged simultaneously, with the total market capitalization skyrocketing by 7.56% in a single day, making meme coins, AI, and RWA tracks the focus of funds.

The current market is being driven by a resonance of policy, technology, and funds. After Bitcoin broke through $100,000, the crypto assets entered a new stage of an "institutionalized bull market." It is advised that investors adopt a strategy of a "core position + tactical position" to navigate the volatility and focus on the long entry window before the rate cut cycle (July).

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