Bitcoin’s recent surge to an all-time high of $109,400 is primarily attributed to easing trade tensions between the U.S. and China. The announcement of a 90-day trade agreement on May 12 temporarily reduced import tariffs, boosting investor confidence and leading to a 26% increase in Bitcoin’s price over the past month. This development has reignited interest in Bitcoin as a hedge against macroeconomic uncertainties.
Additionally, the rally is supported by increased institutional adoption and positive market sentiment. Analysts suggest that Bitcoin is entering an “acceleration phase,” reminiscent of the post-election rally in Q4 2024, indicating potential for further gains. Technical indicators also point to strong support levels, with some traders targeting a “blow-off top” at $128,000 in the near term.
However, it’s important to note that while the momentum is strong, market volatility remains a factor. Investors should exercise caution and consider market dynamics before making investment decisions.
