The cryptocurrency market is witnessing a powerful resurgence in investor appetite for risk assets, with Bitcoin (BTC) leading the charge. On Thursday, Bitcoin surged to its highest level since late February, rapidly approaching the pivotal $100,000 psychological and technical resistance mark. This rally signals a notable shift in market dynamics—from macro-driven sentiment to momentum-based trading strategies fueled by spot demand and renewed institutional interest.
Shift Toward Momentum-Driven Bitcoin Trading
After weeks of volatility triggered by shifting global trade policies and risk-off sentiment, Bitcoin climbed 3.1% to $97,483—its highest price since February 21. The last time BTC briefly touched $100,000 was on February 7, but current momentum suggests a more sustainable approach this time around.
👉 Discover how momentum traders are positioning for the next Bitcoin breakout.
This rebound coincides with a broader recovery in digital assets. While Bitcoin leads the charge, smaller-cap cryptocurrencies are also showing strength: Dogecoin (DOGE) jumped 4.8%, and Ethereum (ETH) gained 3.3% on the day. These gains reflect growing confidence across the crypto ecosystem, especially as leverage in derivatives markets remains subdued—indicating healthier market fundamentals.
From Macro Fears to Spot Market Strength
Earlier in the year, Bitcoin’s movements were closely tied to macroeconomic factors such as inflation expectations and U.S. trade policy shifts—particularly under President Trump’s unpredictable tariff announcements. These developments triggered sharp sell-offs across equities and digital assets alike, with Bitcoin dropping nearly 30% from its all-time high of $109,000 reached on January 20 following Trump’s election victory.
However, recent trends suggest a structural shift. According to Bloomberg data, spot Bitcoin and Ethereum ETFs attracted over **$3.2 billion in net inflows last week alone**. Notably, BlackRock’s iShares Bitcoin Trust (IBIT) pulled in $1.5 billion—marking its strongest weekly inflow of 2025 so far.
This surge in ETF demand underscores a critical evolution: investor interest is increasingly anchored in spot market fundamentals rather than speculative futures activity. With lower liquidation volumes in both long and short positions—per data from Coinglass and Deribit—the market appears less fragile and more resilient to sudden shocks.
Why $100,000 Is Now in Focus
The psychological importance of the $100,000 level cannot be overstated. It represents not just a round number but a key milestone that could redefine Bitcoin’s role in mainstream finance. Market structure supports this move: on Deribit, the most popular options contract by open interest is the **$100,000 call option**, across all expiration dates.
This means that traders are actively betting on—and preparing for—a sustained move above six figures. Such positioning amplifies upward pressure as the price nears that threshold, creating a self-reinforcing cycle of buying momentum.
Chris Newhouse, Research Director at decentralized finance platform Ergonia, observed:
“Market sentiment has clearly shifted toward spot-driven momentum trading. While Bitcoin continues to oscillate in its correlation with gold and equities, it’s developing a more nuanced and dynamic relationship with macro forces. In the short term, spot demand and technical momentum are taking center stage.”
The Role of Institutional Demand
Institutional adoption remains a core driver behind Bitcoin’s renewed strength. The success of spot ETFs has opened the floodgates for traditional finance players who previously avoided direct exposure due to regulatory or custody concerns.
These products offer regulated access to Bitcoin without the complexities of self-custody or exchange risk. As a result, pension funds, family offices, and asset managers are increasingly allocating capital to crypto through these vehicles—adding stability and long-term holding patterns to an otherwise volatile asset class.
Moreover, the relative calm in leveraged derivatives markets suggests that much of the speculative froth has cooled. Unlike previous rallies driven by excessive margin trading and futures positioning, today’s uptrend is being built on real demand, reducing the risk of a sudden collapse.
👉 See how institutions are shaping the next phase of the Bitcoin rally.
Key Factors Supporting Continued Upside
Several interrelated factors point to sustained bullish momentum for Bitcoin:
- Strong spot inflows: ETFs continue to draw consistent capital.
- Reduced leverage: Lower open interest in high-risk derivatives reduces systemic risk.
- Technical momentum: Price action shows strong upward trajectory with higher highs.
- Options market positioning: Calls at $100K dominate open interest.
- Macroeconomic recalibration: As inflation stabilizes and trade tensions ease, risk assets regain appeal.
While geopolitical uncertainties and policy shifts can still trigger short-term volatility, the underlying trend favors further appreciation if current conditions hold.
FAQ: Understanding Bitcoin’s Push Toward $100K
Q: What’s driving Bitcoin’s current price surge?
A: A combination of strong spot demand via ETFs, reduced leverage in futures markets, and growing bullish sentiment around the $100,000 target is fueling the rally.
Q: Is this rally different from previous ones?
A: Yes. Unlike past cycles driven by retail speculation and high leverage, this move is supported by institutional inflows and spot market strength—making it potentially more durable.
Q: Why is $100,000 such an important level for Bitcoin?
A: It's a major psychological barrier and technical milestone. Breaking it could trigger algorithmic buying and broader media attention, accelerating adoption.
Q: Could another market crash reverse these gains?
A: While no asset is immune to corrections, lower leverage levels and stronger fundamentals make a deep crash less likely unless triggered by extreme black-swan events.
Q: How are options markets influencing Bitcoin’s price action?
A: The high open interest in $100K call options creates structural buying pressure as traders hedge or roll positions, supporting upward momentum.
Q: Should I invest now before Bitcoin hits $100K?
A: Investment decisions should be based on personal risk tolerance and research. However, many analysts view this phase as part of a maturing bull cycle with room for further growth.
Bitcoin’s journey toward $100,000 is no longer just speculation—it’s becoming a technical reality shaped by evolving market mechanics. With momentum trading now dominant and spot demand firmly in control, the path forward looks increasingly clear.
👉 Get real-time insights and tools to navigate the next leg of the Bitcoin rally.
As institutional participation deepens and retail confidence returns, the convergence of technical strength and fundamental support suggests that Bitcoin may not only reach $100,000—but could aim even higher in 2025.