Bitcoin Blasts Past $100K: Pro-Crypto Politics Ignite Market Comeback

The latest rally has injected new momentum into a market that had shown signs of fatigue earlier this year. Analysts point to a convergence of factors, including positive regulatory shifts, trade diplomacy, and increased investor appetite for crypto exposure, particularly through regulated vehicles such as exchange-traded funds (ETFs).

The rebound coincided with the announcement of a preliminary trade agreement between the United States and the United Kingdom, which President Donald Trump hailed as a 'breakthrough' deal. While the agreement eased some market concerns over transatlantic trade tensions—particularly through reduced tariffs on key goods—it was not comprehensive. Nonetheless, the news contributed to a broader wave of optimism across equities and digital assets, including Bitcoin.

Further fueling bullish sentiment, Paul Atkins has officially been sworn in as chair of the U.S. Securities and Exchange Commission (SEC). Widely regarded as crypto-friendly, the former SEC commissioner is expected to take a more accommodative stance on digital assets. His leadership is anticipated to reverse or reform several policies introduced under predecessor Gary Gensler, with industry advocates hopeful that this transition will accelerate the rollout of clear, comprehensive federal crypto regulations.

Perhaps the most significant contributor to Bitcoin’s latest price surge is the continued influx of institutional capital via spot Bitcoin ETFs. U.S.-listed Bitcoin ETFs attracted $5.3 billion in net inflows over the last three weeks alone. The largest beneficiaries include BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund.

Adding to this momentum, Coinbase recently finalized a $2.9 billion acquisition of Deribit, a major derivatives exchange. The deal gives Coinbase deeper access to high-volume futures and options markets, a move aimed at capturing more sophisticated institutional clientele. the The acquisition aligns with Coinbase’s broader goal of bridging traditional finance and advanced crypto trading infrastructure.

Macro headwinds that previously dampened crypto prices are now turning into tailwinds. A weaker U.S. dollar, falling Treasury yields, and growing expectations of interest rate cuts by the Federal Reserve have revived investor interest in risk-on assets. Bitcoin, often dubbed “digital gold,” has reasserted its role as an inflation hedge and alternative store of value.

Meanwhile, Bitcoin’s dominance rate—its share of the total crypto market cap—has climbed above 60%, signaling a rotation out of altcoins into the relative safety and prestige of BTC. This shift suggests that investors are prioritizing liquidity and security amid ongoing global uncertainties.

Standard Chartered, one of the most bullish major banks on crypto, has reaffirmed its Q2 price target of $120,000 for Bitcoin, citing strong institutional demand and favorable market conditions. Geoffrey Kendrick, the bank’s Head of Digital Assets Research, even suggested the target may prove conservative.

Despite the optimism, market watchers caution against complacency. Some analysts note that the $100K breakout may attract profit-taking, particularly from investors who entered during previous rallies. Others stress the importance of maintaining current ETF inflow levels and regulatory momentum to sustain higher valuations.

Bitcoin’s performance also continues to influence broader crypto sentiment. Ethereum rose 8% following Bitcoin’s breakout, while other large-cap tokens like Solana and Avalanche posted similar gains. This spillover effect underscores the benchmark role that Bitcoin plays in shaping the trajectory of the digital asset market.

Bitcoin’s return to six-figure territory represents more than a price milestone, it signals deepening maturity, growing legitimacy, and accelerating institutionalization. With ETF inflows surging, geopolitical shifts favoring crypto policy, and macroeconomic conditions improving, Bitcoin appears well-positioned to sustain its upward trajectory.

However, as history has shown, volatility remains a defining characteristic of this asset class. Investors, both retail and institutional, will be watching closely to see if this latest rally evolves into a long-term trend—or another short-lived breakout.