Bitcoin Surges 5% to $108,010 on Institutional Interest and Geopolitical Factors

Bitcoin (BTC) experienced a significant rebound this week, recovering from a sluggish start on Monday. The cryptocurrency briefly crossed $107,313 on Tuesday, reaching an intraday high of $108,010 before settling at $106,488. This price jump marked a breakout from its consolidation phase, where it had been trading between $100,000 and $105,000. The surge in BTC's price can be attributed to several macroeconomic and geopolitical factors, including a loss of confidence in traditional financial systems, cooling trade war tensions, and persistent inflation. Additionally, the Federal Reserve's cautious stance has kept real yields on the higher side, while spot Bitcoin ETFs have seen steady inflows, indicating a resurgence in institutional interest.

Vivek Ramaswamy’s Strive is planning to expand its Bitcoin holdings by acquiring 75,000 Bitcoin from claims tied to the bankrupt cryptocurrency exchange Mt. Gox. The firm aims to purchase these claims at a significant discount, which would allow it to grow its Bitcoin per share ratio ahead of its planned reverse merger with Asset Entities. Strive has partnered with 117 Castell Advisory Group LLC to target claims that have received definitive legal rulings but are awaiting distribution. The firm has not disclosed any current Bitcoin holdings but claims it faces fewer restrictions on purchasing Bitcoin than companies going public through Special Purpose Acquisition Company mergers. Strive also stated it requires shareholder approval to pursue Mt. Gox claims and plans to lodge a filing with the United States Securities and Exchange Commission (SEC) to outline the complete terms of the proposed transaction.

President Donald Trump’s “big beautiful” bill, which extends the 2017 tax cuts and introduces new tax measures, could have bullish implications for Bitcoin and other altcoins. The bill is expected to increase the US public debt and deficit, raising the public debt by $3.3 trillion over the next ten years and pushing the debt-to-GDP ratio from 100% to 125%. Rising risks of a government default are viewed as bullish for Bitcoin, which has enhanced its reputation as a safe-haven asset.

Standard Chartered’s Geoffrey Kendrick reaffirmed the bank’s prediction that Bitcoin could reach $500,000 by 2029, citing increased government and institutional exposure. Kendrick highlighted the spike in the Securities and Exchange Commission (SEC) Q1 13F data, which indicated a rise in government and institutional exposure to the flagship cryptocurrency. The growing interest in Bitcoin can be attributed to declining confidence in government bonds thanks to macroeconomic factors. A research note by KKR & Co stated that during risk-off days, government bonds are no longer fulfilling their role as the 'shock-absorbers' in a traditional portfolio.

BTC started the previous week in the red after encountering selling pressure and volatility. Sellers ultimately pushed the price down over 1% to $102,728. The flagship cryptocurrency recovered on Tuesday, rising 1.36% to $104,123. BTC was back in the red on Wednesday, registering a drop of 0.53% to $103,568. BTC plunged to an intraday low of $101,459 on Thursday as selling pressure intensified. However, it recovered from this level to register a marginal increase and settle at $103,816. Price action turned bearish on Friday, registering a marginal decline to $103,545. BTC continued to decline on Saturday, registering another marginal decline and settling at $103,235. The price recovered on Sunday as markets rebounded, rising over 3% to cross $106,000 and settle at $106,479. BTC started the week on a bearish note, plunging to a low of $102,145 before rebounding to settle at $105,573, ultimately registering a drop of nearly 1%. Despite a bearish start to the week, BTC rebounded on Tuesday, rising 1.21% and settling at $106,855. BTC has crossed $107,000 during the ongoing session. If buyers maintain momentum, the price could cross $110,000 and set a new all-time high.