Bitcoin Aims for $105K as Coinbase Leaps 24%; Analyst Believes Rally Has Room to Grow

Bitcoin Breaks $104K, Boosted by Positive Inflation Data, Trump’s Optimism, and Coinbase’s S&P 500 Inclusion

Bitcoin (BTC) surged back above $104,000 on Tuesday, driven by a mix of positive inflation data, President Trump’s optimistic view on financial markets, and the announcement of Coinbase’s inclusion in the S&P 500 index.

April’s Consumer Price Index (CPI) report showed inflation cooled more than expected, providing relief to the Federal Reserve, which has been closely monitoring inflationary pressures tied to tariffs. Jerome Powell, the Fed Chair, will speak on Thursday, and his comments could further clarify the central bank’s future plans.

The market’s optimism was further bolstered by President Trump’s remarks at the Saudi–U.S. Investment Forum in Riyadh, where he indicated that financial markets “could go a lot higher,” adding to the overall positive sentiment.

Bitcoin briefly approached the $105,000 mark but retraced slightly, now trading around $104,400, marking a 2.4% increase over the past 24 hours. Other cryptocurrencies also showed strong performance, with Ethereum’s Ether (ETH) jumping more than 9% to $2,700. Additionally, decentralized finance (DeFi) protocols like Eigenlayer and EtherFi saw tokens surge by 20-30% in daily gains.

On the stock market, the Nasdaq rose 1.6%, and the S&P 500 climbed 0.75%, continuing its upward trend. Coinbase (COIN) saw a dramatic 24% increase in its stock price, benefiting from its upcoming addition to the S&P 500 index. According to analysts, this inclusion could generate as much as $16 billion in buying pressure for Coinbase.

Institutional Capital and Regulatory Developments

Joel Kruger, market strategist at LMAX Group, noted that while the crypto market is currently consolidating after last week’s gains, the rally still has plenty of room to run. “The market is taking a breather, but overall sentiment suggests the rally is far from over,” Kruger explained.

Kruger highlighted that institutional adoption is a key driver behind the market’s momentum, with Coinbase’s S&P 500 inclusion marking a major step forward. “This milestone signifies that the crypto industry is gaining legitimacy, and as more institutions join in, we expect the rally to accelerate,” Kruger said.

Regulatory clarity is also improving, with SEC Chair Paul Atkins pledging to make the U.S. a hub for cryptocurrency innovation. Kruger believes that this commitment could usher in a new wave of institutional investment if accompanied by clear and actionable policies.

Paul Howard, senior director at Wincent trading firm, echoed this sentiment, stating that while altcoins are benefiting from the rally, institutional investors are becoming more selective. “The growing institutional interest is setting the stage for a more refined crypto market,” Howard commented on Telegram. “The most resilient altcoins will likely capture a significant share of the capital flow, while weaker projects may be weeded out.”

Bitcoin Poised for New Record in 2025

Bitcoin is now within striking distance of surpassing its January all-time high, with analysts at Bitfinex suggesting that despite recent strong gains, the market isn’t yet overheated. Neutral funding rates and steady trading volumes point to a stable market, although Bitcoin is facing resistance in the $104,000-$106,000 range.

“Bitcoin has been rallying hard, but we expect a brief consolidation as it stabilizes above $100,000,” said Bitfinex analysts. “This period of pause may push the new all-time high into June.”

Looking further into the future, Bitfinex analysts are highly bullish, with a price target of $150,000-$180,000 for Bitcoin by 2025-2026.

“Bitcoin’s outlook has never been stronger,” they concluded. “With increased sovereign and institutional adoption, a growing number of Bitcoin ETFs, and more positive regulatory developments in the U.S., Bitcoin is on its way to becoming a dominant global macro reserve asset.”

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