Bitcoin Surges 2% to $107,000 as Trade War Cools

Bitcoin's price surged to $107,000 on Tuesday, marking its highest point since January and coming within 2% of its all-time high. This significant rally was driven by robust buying, as the cryptocurrency market consolidated just below its peak. The price briefly crossed the $107,000 threshold before pulling back to $105,506, reflecting a slight 0.07% decrease over a 24-hour period. This movement indicates a controlled growth phase, with stable funding rates on major exchanges.

Risk-on assets, including cryptocurrencies, have rebounded significantly in recent weeks as the global trade war cools off. This cooling has benefited other major cryptocurrencies as well, with Ethereum surging by 58% over the last 30 days, Dogecoin up 45%, and Solana rising by nearly 23%. Meme coins have been some of the biggest beneficiaries, with some of last year's biggest coins skyrocketing in value.

Bitcoin has made a substantial rebound since falling to a price below $75,000 in early April amid the brewing global trade war. However, BTC has continued to tick up in recent weeks as trade tariffs against America's partners have been pulled back and trade deals have been signaled with some of them.

Bitcoin's price hit the $107,000 level on Monday morning, triggering an intensified sell-off and quickly pulling back below $102,000. During the European session, BTC stabilized around $103,000, close to the average level of the last 10 days. A failed growth attempt could lead to a short-term pullback to $97,000.

Significant inflows into spot bitcoin ETFs in the US have continued for four consecutive weeks, with net inflows totaling $603.7 million over the past week. Cumulative inflows since bitcoin-ETFs were approved in January 2024 totaled $41.77 billion. Lower US inflation and increased institutional participation support the current rally in the cryptocurrency market. However, when key technical support levels are broken, the current consolidation may lead to a local correction.

JPMorgan believes that Bitcoin is likely to outperform gold in the second half of the year, thanks to corporate buying and growing support from US states. The shift in sentiment has already been evident in the past three weeks, with capital shifting from precious metals ETFs to spot BTC-ETFs.

According to a survey, 90% of banks, financial institutions, fintech companies, and payment services plan to use or are already using stablecoins, focusing primarily on cross-border payments. Among the advantages mentioned by respondents, the first place is occupied by faster settlements.

Bitcoin has reached a local high of $107,000, remaining within close range of its ATH of $109,000 set in December 2024. This has driven a notable increase in capital. The token is now testing support near the 20-day EMA, and market participants are split over whether the bull market is nearing its end. The price action retargeted $105,000 after the market open, rising 2.5% from the day's lows. Volatility continues, leading market participants to varying interpretations of the current market conditions.