Bitcoin has surged back into the spotlight, trading near its all-time high of $104,000, just 5% below the record peak of $109,350. The recent rally follows a steep drop to $75,000 in April, with Bitcoin now gaining nearly 10% in just a week. Market sentiment has been bolstered by improved U.S.-China trade relations, steady inflows into Bitcoin ETFs, and expectations of cooling inflation.
BREAKING: U.S. Announces China Trade Deal in Geneva pic.twitter.com/JjgvYAvAGe
— The White House (@WhiteHouse) May 11, 2025
U.S.-China Trade Deal Eases Inflation Worries
Investor sentiment was further lifted after the United States and China reached a trade agreement in Geneva. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer confirmed the deal, with a joint statement expected soon. The agreement comes after months of tariff hikes that had stoked inflation fears. Now, with trade tensions easing, market watchers are optimistic that the upcoming April CPI data will reflect a slight slowdown in inflation.
According to RBC, April’s CPI is projected to ease to 2.3% from 2.4% in March, while core CPI is expected to hold steady at 2.8%. Markus Thielen of 10x Research noted that if the CPI data aligns with expectations, it could trigger further gains for Bitcoin. Even a slightly higher-than-expected CPI may not dampen sentiment, given the easing of trade-related pressures.
This upcoming Tuesday is CPI day again, and it will be very important to watch. CPI is one of the main indicators for the Fed, and this release could show whether tariffs are pushing inflation higher.
— Crypto | Stocks | Freedom (@Wealthmanagerrr) May 11, 2025
The forecast is 2.3%. If the number comes in at or below that, markets will… pic.twitter.com/rPTu2pW8dy
ETF Inflows Signal Sustained Demand
BlackRock’s spot Bitcoin ETF has seen consistent inflows for 20 straight days, amassing over $5 billion. The Federal Reserve’s decision to keep interest rates unchanged has further supported bullish sentiment. Fed Chair Jerome Powell acknowledged that the impact of tariffs on inflation may be short-lived, reinforcing optimism in the market.
Also Read: Metaplanet Surpasses El Salvador in Bitcoin Holdings with $126.7M Purchase
Altcoins Join the Rally
While Bitcoin continues to dominate headlines, altcoins are also experiencing significant gains. Ethereum surged 39% to $2,500, marking its best weekly performance since 2020. Dogecoin, Cardano (ADA), XRP, and Solana also posted strong rallies. Notably, Pi Coin spiked 33% to $1.25, with trading volume skyrocketing 280% to $1.32 billion.
With Bitcoin stabilizing near its all-time high, analysts are setting ambitious targets. AlphaBTC predicts a test of $106,000, while Egrag Crypto suggests $170,000 could be the next cycle peak if Bitcoin breaks through $109,000. Former Binance CEO CZ is even more bullish, forecasting a potential rise to $500,000 or even $1 million this cycle. As market conditions remain favorable and ETF inflows persist, Bitcoin’s next breakout may be just around the corner.
📈#Bitcoin getting ready correct? or move higher?‼️
— AlphaBTC (@mark_cullen) May 12, 2025
Was hoping for another clear 5th wave to complete this 5th wave impulse, but looks like we get chop. These fib levels still look good, and with the 🇨🇳 /🇺🇸 announcement later, maybe there is still another leg before a bigger… https://t.co/RWz5RRZizU pic.twitter.com/wvuCX7L6KK
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
