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Bitcoin Surges Past $100K as Trade Talks Fuel Bullish Momentum

Bitcoin Surges Past $100K Amid U.S.-China Trade Talks, Analysts Eye $120K Target as ETF Inflows Strengthen Market Optimism

  • Bitcoin surpassed $100,000 before settling near $99,500 during renewed U.S.-China trade talks and news of a potential trade deal with the United Kingdom.
  • Analysts and institutional investors suggest Bitcoin could reach $120,000 by the end of the second quarter, influenced by Federal Reserve policy and ETF inflows.
  • Crypto market sentiment remains optimistic, with major institutions diversifying into Bitcoin amid easing global trade tensions and continued positive ETF inflows.

Bitcoin crossed the $100,000 mark for the first time since February, according to CoinGecko data, before retreating to around $99,500 as of Wednesday. The move comes as the United States prepares for trade negotiations with China and discusses a major trade agreement with the United Kingdom.

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Positive momentum in the cryptocurrency market coincided with the Federal Reserve leaving interest rates unchanged and U.S. President Donald Trump hinting at a forthcoming major trade deal on Truth Social. ETF flows reflected renewed investor confidence, with $142 million in net inflows to spot Bitcoin ETFs reported on Wednesday, reversing prior outflows. The majority of Wednesday’s inflows were led by Ark Invest‘s ARKB fund, which received $54.7 million, according to data from Farside Investors.

Geoff Kendrick, an analyst at Standard Chartered, said in a note shared with Decrypt that he expects Bitcoin prices could climb as high as $120,000 by the end of June. Kendrick wrote, “My specific target of $120,000 for Q2 looks very achievable.” He added that the deadline for institutional disclosures is approaching, when large firms like ETF issuers and MicroStrategy will reveal their Bitcoin holdings. Kendrick noted, “At the end of December Abu Dhabi’s sovereign wealth fund held a small 4,700 Bitcoin equivalent position in IBIT. I would expect that to have increased and other long-term type buyers to have joined in too.” He also mentioned that the Swiss National Bank and Norges Pension Fund have started increasing their Bitcoin-related holdings.

Market strategists connected Bitcoin’s recent rally to changes in U.S. monetary policy. Marco Lim, managing director at Solowin Holdings, told Decrypt, “The potential for Bitcoin to reach $120,000 is closely tied to the Federal Reserve’s interest rate decisions.” Lim added that expectations of multiple rate cuts could significantly boost Bitcoin’s price, especially if it sustains values above the $100,000 resistance level. The Crypto Fear and Greed Index, a measure of overall market sentiment, currently stands at 65, reflecting “Greed” and marking an increase in investor optimism.

Joel Kruger, a market strategist with LMAX Group, commented that risk sentiment has improved due to easing geopolitical risks, including the renewed U.S.-China talks and growing institutional interest in Bitcoin. This positive outlook is shared across decentralized prediction platforms, such as Myriad, where 91% of participants expect the market’s optimism to persist.

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Further, Peter Chung, head of research at Presto, told Decrypt, “Global institutions now realize the need to diversify away from USD assets, which would benefit both Gold and Bitcoin.” Chung noted that global economies are moving to support growth amid trade war tariffs, ultimately benefitting riskier assets like Bitcoin.

As the week progresses, institutional and investor attention remains focused on upcoming trade developments and Federal Reserve announcements. Meanwhile, increased ETF inflows continue to signal a growing mainstream acceptance of Bitcoin as a diversification tool. For further reference, more information is available via CoinGecko, BBC, and Farside Investors.

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