Bitcoin (BTC) Surges Past $100,000 Amid Economic Shifts

By: bitcoin ethereum news|2025/05/13 12:30:07
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Rongchai Wang May 12, 2025 10:43 Bitcoin (BTC) surpasses the $100,000 mark, buoyed by easing macroeconomic tensions and increased institutional investments. The cryptocurrency market sees renewed strength after previous declines. In a notable resurgence, Bitcoin (BTC) has crossed the $100,000 threshold, marking a significant recovery after a 32% drop from its January all-time high. This comeback, reported by Bitfinex, is driven by favorable macroeconomic conditions, including reduced tariff tensions and a more dovish stance from the Federal Reserve. Bitcoin’s Strong Performance The cryptocurrency’s performance has outpaced equities, reflecting a broader risk-on sentiment in the market. According to Bitfinex, on-chain data indicates a significant decrease in the number of coins held at a loss, with over 3 million BTC turning profitable. This positive momentum is further supported by substantial ETF inflows, exceeding $920 million in recent weeks, and a new all-time high for Bitcoin’s realized cap. Economic and Market Factors The Federal Reserve’s decision to maintain steady interest rates amidst rising inflation and unemployment concerns has also impacted market dynamics. Fed Chair Jerome Powell emphasized the need for more data before further policy adjustments, underscoring the current economic uncertainties. Global Market Influences In energy markets, crude oil prices have fallen due to increased OPEC+ production targets, yet US gasoline prices remain high due to refining bottlenecks and seasonal demand. Additionally, the US-UK trade agreement, while reducing tariffs on certain goods, offers limited economic relief, leaving broader trade challenges unresolved. Regulatory Developments On the regulatory front, New Hampshire has made strides by enacting legislation that allows investments in cryptocurrencies and precious metals, signaling growing state-level interest in digital assets. Meanwhile, the US Senate’s failure to advance the GENIUS Act highlights ongoing challenges in achieving bipartisan support for economic legislation. In the private sector, BlackRock’s engagement with the SEC to discuss staking features for Ethereum-based ETFs and options trading rules marks a significant regulatory development. This indicates a shift in the regulatory landscape as more institutions advocate for expanded crypto asset functionalities. Image source: Shutterstock Source: https://blockchain.news/news/bitcoin-btc-surges-past-100000-amid-economic-shifts

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