Financial Insights That Matter
May 1, 2025
Bitcoin is rapidly approaching the $100,000 mark, a level it hasn’t seen since early February. According to Bloomberg, the original cryptocurrency has gained momentum, climbing as much as 3.1% to $97,483. This resurgence is attributed to a renewed appetite for risk among investors across financial markets.
After a significant drop of up to 30% following its record high of approximately $109,000 on January 20, Bitcoin is showing signs of recovery. The downturn was largely influenced by former President Donald Trump’s tariff policies, which caused a steep decline in both stock and digital-asset markets. However, the current rally is supported by a shift towards momentum trading and spot demand, moving away from macroeconomic influences like inflation and tariffs.
Data from IndexBox highlights the increasing interest in cryptocurrencies, with exchange-traded funds tracking Bitcoin and Ether accumulating over $3.2 billion in the past week. The iShares Bitcoin Trust ETF (ticker IBIT) alone attracted nearly $1.5 billion, marking the highest inflow this year. Meanwhile, smaller tokens such as Dogecoin and Ether have also seen gains, with Dogecoin jumping 4.8% and Ether rising 3.3%.
The options market reflects this bullish sentiment, as demand for call options with a strike price of $100,000 has surged, showing the most open interest across all tenors. Despite the previous market turbulence, liquidations in both bullish and bearish crypto bets remain low, indicating a stable trading environment.
Chris Newhouse, director of research at Ergonia, a DeFi trading firm, noted, “Market sentiment has broadly shifted in favor of momentum-based trades fueled by spot demand, as BTC breaches levels not seen since early February.” The evolving dynamics of Bitcoin’s correlation with gold and equities underscore a complex relationship with macroeconomic factors, balanced by short-term momentum and spot demand.
Source: IndexBox Market Intelligence Platform
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