Bitcoin Breaks $100,000: Institutional Inflows Fuel Comeback Amid Tariff Shock Recovery

Bitcoin is making an impressive comeback: With a price increase to over $100,000 within a few weeks, the market has once again surprised many observers.

After a brief slump to $75,000 – triggered by Donald Trump’s announcement of punitive tariffs in early April – both crypto and traditional markets are celebrating a comeback. But how sustainable is this rally? And what does this mean for your expectations?

Tariff shock digested – now fresh capital flows

The current price surge is more than just a countermovement to the April crash. While altcoins like Solana and Ethereum temporarily plummeted by over 60%, Bitcoin has proven significantly more stable – and is now gaining ground again. According to Geoff Kendrick of Standard Chartered, a key driver of this development is capital flows: Institutional funds are currently pouring massively into spot Bitcoin ETFs – apparently not just through neutral basis trades, but through genuine net inflows.

Parallel to the crypto rally, the Nasdaq and the S&P 500 have also reached new highs. Markets therefore appear to be reassessing the economic policy risks that caused panic in April – especially after a possible trade agreement between the US and Great Britain, which has recently provided positive impetus.

Will price targets of $120,000 soon be outdated?

Bitcoin had already broken through the $100,000 mark for the first time in December – boosted by Trump’s election victory in November. Shortly before his inauguration, the price even rose above $109,000. A correction then set in. Now many are asking: Was that just a temporary low, and is the next big wave now beginning?

In his latest analysis, Geoff Kendrick admits that his previous price target of $120,000 for the second quarter may be too conservative. Especially with the upcoming 13F reporting, which discloses institutional ETF holdings, further buybacks by major players could occur.

Conclusion: The Bitcoin market is alive – and flowing

For you as a trader, this means: It’s not the news itself, but capital flows that are currently the key to price movements. As long as genuine demand enters the market – be it through ETFs or companies like (Micro) Strategy – further upside potential is absolutely realistic.

But as always, the market remains volatile, and political developments like Trump’s economic policies can create new risks at any time. However, those who think in the medium term see Bitcoin currently coming back into play from the sidelines – and with full force.

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(Featured image by David McBee via Pexels)

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