Bitcoin Surges 25% to $106,000 as Trump's Policies Boost Market Sentiment

Matrixport has announced a significant rebound in Bitcoin prices, reaching the upper limits of the current consolidation zone at $106,000. This bullish trend is supported by various catalysts, prompting market stakeholders to anticipate a potential breakout above its historical peak. As downside risks diminish, Bitcoin’s upward trajectory appears increasingly promising. Trump’s renewed focus on fundraising and trading alliances has infused the market with optimism, positively affecting both stock valuations and cryptocurrency sentiments.

Amidst expectations for sustained economic expansion, should tax reductions from the Trump administration and potential easing of regulatory constraints materialize, the market sentiment could further invigorate. Notably, risk assets like Bitcoin stand to benefit from an advantageous trading environment leading up to July. This period will align with the conclusion of a 90-day tariff truce, the onset of Q2 earnings reports, and heightened liquidity levels.

Another critical factor is the anticipated disbursement of credit payments by FTX, targeting accounts with balances exceeding $50,000. Set to commence around May 30, 2025, this initiative is projected to involve approximately $5 billion in stablecoin distributions, likely revitalizing market dynamics. Additionally, the continuous influx of investment into Bitcoin ETFs and active trading in stablecoins may further amplify market activity this summer.

Since surpassing the technical threshold of $84,500 in mid-April, Bitcoin has upheld a bullish outlook. Although the cryptocurrency has appreciated nearly 25% or around $20,000, there remains a consensus among analysts that this upward momentum is not yet depleted, with expectations for sustained growth into the warmer months.

The cryptocurrency market is experiencing a significant rebound, with Bitcoin nearing its all-time highs. A major catalyst fueling this optimism is the news that a leading cryptocurrency exchange is set to join the S&P 500 index on May 19, 2025. This development is a landmark event for the crypto industry, signaling growing institutional acceptance and potentially driving fresh capital inflows into digital assets. As of May 14, 2025, at 10:00 AM UTC, BTC was trading at $94,800, just shy of its ATH of $96,000 recorded in November 2021. Meanwhile, ETH traded at $3,900 on the same timestamp, reflecting a 5.2% increase in the last 24 hours. The inclusion in the S&P 500 is not just a symbolic win; it bridges traditional finance and decentralized finance, likely encouraging institutional investors to allocate more capital to crypto markets. This news comes at a time when the broader stock market is showing mixed signals, reflecting cautious optimism among equity investors. The correlation between crypto and stock markets remains evident, as risk-on sentiment in equities often spills over to digital assets, and the entry could amplify this dynamic.

From a trading perspective, the inclusion of a leading cryptocurrency exchange in the S&P 500 presents multiple opportunities across crypto markets. As institutional money flows into the stock, there’s a high likelihood of spillover effects into BTC and ETH trading pairs. Historically, positive news for crypto-related stocks has driven short-term rallies in major cryptocurrencies, and traders can position for potential upside in BTC/USD and ETH/USD pairs. On-chain data shows a 12% increase in BTC wallet addresses holding over 1 BTC in the past week, signaling accumulation by larger players. Similarly, ETH staking deposits on platforms have risen by 8% in the same period, reflecting growing confidence. For altcoins, tokens tied to exchange ecosystems could also benefit from increased sector sentiment. However, traders should remain cautious of volatility, as overbought conditions in BTC’s Relative Strength Index suggest a potential pullback if momentum stalls. Cross-market analysis indicates that a sustained rally in the stock could drive further inflows into spot Bitcoin ETFs.

Diving into technical indicators and market correlations, BTC’s price action shows a strong breakout above the $92,000 resistance level on the 4-hour chart, with the 50-day moving average providing support at $88,500. Trading volume spiked by 15% during this breakout, reinforcing bullish momentum. For ETH, the $3,850 level acted as a key resistance, breached with a 7% volume surge in the past 12 hours. Market sentiment, gauged by the Crypto Fear & Greed Index, stands at 78 (extreme greed), suggesting potential overextension but also strong bullish conviction. Correlation between BTC and the S&P 500 remains high, indicating that broader equity market movements could influence crypto price action. Institutional impact is clear, with the S&P 500 inclusion likely to attract passive index fund investments into the stock, indirectly boosting crypto market liquidity. For traders, monitoring BTC’s $95,000 resistance and ETH’s $4,000 psychological level will be critical in the coming days, alongside S&P 500 performance post-inclusion. Risk appetite remains elevated, but a sudden shift in stock market sentiment could trigger profit-taking in crypto markets, so stop-loss orders below key support levels are advisable.

In summary, the entry into the S&P 500 is a pivotal moment for crypto-stock market integration, with direct implications for BTC, ETH, and related assets. Institutional money flow, evidenced by ETF inflows and on-chain accumulation, underscores the bullish outlook. Traders should capitalize on momentum while remaining vigilant of cross-market risks and overbought technicals. This event could mark a new era of mainstream adoption for cryptocurrencies, provided equity markets sustain their current risk-on stance.