Bitcoin’s surge has pushed the cryptocurrency past $103,000 as traders react to rate cut expectations and ETF inflows right now. At the time of writing, the world’s largest digital asset has actually returned to positive territory for 2025, recovering from April lows of around $74,000, though it’s still below January’s $109,000 peak.
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How Rate Cuts and ETF Inflows Contribute to Bitcoin’s Price Surge
The Bitcoin surge comes amid favorable conditions despite ongoing crypto market volatility and also some lingering trade tensions that have been affecting markets.
Rate Cut Expectations
The Bitcoin surge gained momentum as markets are currently pricing in a 70% chance of a July rate cut, with CME’s FedWatch tool also showing 95% odds of easing by October. The anticipated rate cuts have fueled Bitcoin price trends and sparked renewed interest in cryptocurrencies and digital assets.
President Donald Trump stated:
“Cutting rates would be like jet fuel for the economy.”
ETF Inflows Signal Institutional Demand
Bitcoin’s ETF inflows reached their highest levels since November according to ARK Invest’s April report, contributing to the Bitcoin surge we’re seeing. Exchange balances dropped to 14%, the lowest since 2018, indicating stronger institutional confidence.
Antoni Trenchev, co-founder of Nexo, had this to say:
“The retaking of $100,000 must go down as one of Bitcoin’s more formidable feats and is a reminder that buying peak fear – just last month Bitcoin was languishing around $74,000 – can be exceptionally lucrative.”
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Trade Deal Impact
The Bitcoin surge coincided with a U.S.-UK trade agreement that has eased market tensions after months of uncertainty. This reduction in crypto market volatility came after previous sharp declines between February and April.
Economist Justin Wolfers stated:
“The economic reality of this is basically… very, very small.”
Despite this assessment, markets have welcomed any sign of easing trade tensions and such.
Momentum and Outlook
The current Bitcoin surge appears sustainable as Bitcoin price trends show strong momentum. Long-term holders are offsetting selling pressure from short-term traders and retail investors.
QCP Capital noted:
“Until Bitcoin can close above the $100,000 handle on the daily, we see limited reward in chasing momentum at current levels.”
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The hope that rate cuts are just around the corner, along with Bitcoins ETF in-flows plus a positive trade sentiment angle coming together has boosted the recent momentum of Bitcoins through the critical $100,000 mark. Analysts continue to be alert to the level of volatility in the crypto market which may influence active price movement within the next few weeks.