- Bitcoin remains above $100,000 as renewed risk appetite follows a drop in market volatility and a US-China trade deal.
- Investor optimism grows as Bitcoin’s Bull Score Index jumps to 80 and the Fear & Greed Index moves higher, suggesting potential for more gains.
- Analysts point to lower inflation and a likely Federal Reserve rate cut as further positive signs for Bitcoin’s market outlook.
The price of Bitcoin (BTC) stayed above $100,000 in recent trading, supported by increasing risk sentiment after the CBOE Volatility Index fell to its long-term average of 20. This development follows the recent US-China agreement that introduced a 90-day tariff pause and a 115% reduction in tariffs for both nations.
According to Bitcoin network economist Timothy Peterson, the decline in the volatility index, also known as the VIX, marks a return to “normal” levels and encourages investors to seek higher-risk assets. “$VIX dropped substantially yesterday on news of a potential China trade deal. It is now at ‘normal’ levels. This will be a ‘risk on’ environment for the foreseeable future,” Peterson explained. At the same time, the US Consumer Price Index (CPI) inflation rate dropped to 2.3% in April 2025, its lowest in more than four years and below consensus forecasts, raising the possibility of an interest rate reduction by the Federal Reserve if other indicators remain steady.
Crypto analytics platform CryptoQuant reported a dramatic surge in the Bitcoin Bull Score Index, which rose from 20 to 80, a level typically linked to strong price rallies. This increase is attributed to spot demand rising faster than supply, matching trends seen after the April 2024 halving event. For more details, see CryptoQuant’s report.
Axel Adler Jr, a Bitcoin researcher, noted that the Fear & Greed Index stands at 53.3%, which signals growing optimism but is still below what is considered an “overheated” market level above 80%. Adler highlighted the potential for Bitcoin to test and possibly surpass its previous record near $110,000.
Earlier this month, Peterson suggested Bitcoin could reach $135,000 within 100 days, as he observed an accuracy rate of 95% in his model connecting a low VIX with increased optimism for risk assets like Bitcoin. His outlook is based on the drop in VIX from 55 to 25 and the resulting positive investor sentiment.
The current environment—combining easing trade tensions, declining inflation, and lower market volatility—creates favorable conditions for Bitcoin, with several indicators pointing toward continued optimism in the digital asset market.
This article does not contain investment advice. Every investment move involves risk, and readers are encouraged to carry out their own research before making financial decisions.
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