Bitcoin Surges 2.82% to $105,941 on Institutional Interest

Bitcoin's price surged to $105,941, marking a 2.82% daily gain. This upward momentum has brought the cryptocurrency close to a new all-time high, with analysts suggesting that a breakout above $107,000 could propel it even higher. The recent price action has been driven by a combination of factors, including increased institutional interest and favorable macroeconomic developments.

Investor confidence in Bitcoin has been bolstered by its ability to hold above the $100,000 mark, with the basis trade yielding approaching 9%. This has attracted significant institutional interest, as investors seek to capitalize on the growing demand for the cryptocurrency. The recent price surge has also been supported by strong inflows into crypto spot exchange-traded funds, which absorbed $7.5 billion of net inflows over the past week. BlackRock’s IBIT vehicle alone now controls 633,212.00 BTC, equivalent to 3% of the total supply, underscoring the structural bid that has helped the asset rally 42% year to date.

Bitcoin's price briefly rose to $106,300 early Tuesday before sellers pushed it back under the $106,000 threshold, extending a months-long pattern of rejection just shy of January’s record high. The level has capped every advance in 2025, turning the round figure into an increasingly psychological barrier for bulls. The latest test arrived this weekend after Moody’s cut the United States’ sovereign rating to Aa1. The downgrade sparked a brief bid across so-called hard-asset hedges, lifting Bitcoin by almost 2% before momentum stalled. Attention also turned to Capitol Hill, where the Senate voted Monday evening to advance the GENIUS Act, a stable-coin bill that described as a milestone for comprehensive U.S. digital-asset rules. Bitcoin appears to have reacted favorably to the news.

Market sentiment has been further bolstered by the recent price action, with analysts suggesting that a daily close above $107,500 is needed to “unlock a clean run at a fresh all-time high.” Edul Patel, co-founder of trading platform Mudrex, pegged first support near $102,750, where the 50-day moving average converges with Monday’s opening price. “Another failure invites a quick trip toward the psychological $100,000 handle,” Patel told Economic Times.

Macro signals remain mixed, with March consumer-price inflation cooling to 2.3%, the softest print since 2024, yet Treasury yields remain elevated as futures price fewer than two rate cuts this year. Real yields above two percent have historically diluted enthusiasm for risk-on trades, even as the downgrade drama revives Bitcoin’s store-of-value pitch. Bitcoin’s reaction to Moody’s headline and the advancement of the GENIUS stablecoin bill reinforced its role, alongside stablecoins, as a macro hedge when traditional finance wobbles. Still, analysts caution that correlation with the Nasdaq remains intermittent; the tech benchmark is up 18% year to date, leaving Bitcoin’s safe-haven narrative far from settled.

Volatility, currently near all-time lows, may accelerate into the May 30 options expiry, where open interest clusters around the $110,000 and $115,000 strikes. A hawkish tilt in Wednesday’s Federal Open Market Committee minutes or a new delay in the next phase of the GENIUS bill could pressure the latest bounce. A decisive close above $107,500 would likely force option writers to hedge, potentially propelling price discovery toward the January peak of $109,224. JPMorgan’s decision to let wealth clients buy Bitcoin directly added to the “trad-fi doors opening” storyline, offering a reminder that institutional demand can outlast knee-jerk selling. Whether that bid proves strong enough to turn the $106,000 wall into a floor may be decided over the next 48 hours of macro news.