Bitcoin Surges 8% to $108,000 on Institutional Buying and Fed Policy

Bitcoin's recent performance has garnered significant attention due to substantial institutional investments and whale trades, indicating a bullish market sentiment. Analysts have set ambitious price targets, with some predicting potential highs of $250,000 and even $1 million. This optimism is driven by institutional traders and whale investors who are showing confidence through aggressive leverage positions and substantial investments via decentralized exchanges.

Analysts like PlanB have highlighted the potential for significant appreciation, stating that Bitcoin is currently in a bull market and is undervalued. The scarcity indicated by low exchange flows supports these bullish predictions, suggesting strategic market moves. Recent actions have broad effects on market trends, with ripple impacts waking industry participants. While impacts on other cryptocurrencies are limited, Bitcoin's price trajectory suggests upcoming volatility.

Market participants are closely monitoring Bitcoin's upcoming movements, as analysts' predictions and whale trades could affect broader financial systems. Historical trends of past market cycles also align with current conditions, adding an additional layer of anticipation. Bitcoin has shown remarkable resilience and bullish momentum, with its price surging to nearly $108,000 after a brief dip below $100,000 due to geopolitical tensions. This recovery has been driven by a combination of factors, including dovish commentary from the Federal Reserve and a prevailing risk-on sentiment across global markets. The cryptocurrency has printed three consecutive bullish daily candles, reinforcing its upward trajectory.

The options market also indicates a bullish sentiment, with a significant disparity between call and put options suggesting a higher likelihood of price increases. The distribution of put options is particularly noteworthy, with a concentration of strike prices below $101,000, implying that bears would need to push Bitcoin below $101,500 by the options expiry date to limit their losses, a scenario that seems unlikely given the current momentum.

Technical analysts using Elliott Wave theory suggest that Bitcoin may be entering a powerful Wave 3 phase, with potential targets exceeding $130,000. This phase is typically the most explosive part of any bull market cycle. The recent correction, which found support near $98,200, has kept the overall positive structure intact, avoiding a deeper bear market territory.

Institutional adoption continues to drive Bitcoin's macro asset behavior. Recent studies indicate that most of the money flowing into spot Bitcoin ETFs is not hedged, suggesting a strong belief in the asset rather than short-term arbitrage. This shift points to Bitcoin moving from a speculative asset to a macro-driven financial tool. The cryptocurrency is now positively correlated with classic risk-on assets like the S&P 500, Nasdaq, and gold, and negatively correlated with the US Dollar Index and credit stress indicators, indicating its maturation as an institutional asset class.

Federal Reserve policy could provide additional support for Bitcoin. Comments suggesting that interest rate cuts are possible if inflation remains low have boosted risk assets across the board. Several Federal Reserve members have also indicated that rate reductions could occur as early as July, further fueling the bullish sentiment for Bitcoin.

The bullish outlook for Bitcoin is supported by several factors, including increasing institutional adoption, potential regulatory clarity, and a V-shaped recovery from recent geopolitical tensions. Technical indicators, such as rising spot CVD, point to strong spot demand and potential upside toward $120,000. Analysts predict that there is a 75% chance that Bitcoin will reach a new all-time high, with the first level of resistance around $110,000. If this level is broken, it could lead to a surge toward $130,000. Important support levels remain around $105,000 and $101,500, with the latter being a critical threshold for bears to regain control before the options expiry.