Bitcoin Reaches $100K for the First Time in Three Months; Are Price Targets Too Cautious?

Bitcoin Reclaims $100K as Trade Deal Hopes and Institutional Flows Propel Its Recovery

Bitcoin (BTC) has surged back to six figures, climbing 33% in just a few weeks, following a dramatic drop to $75,000 after President Trump’s early April tariff announcement. This quick rebound shows once again how Bitcoin tends to defy expectations, returning to its bullish trajectory after a brief setback.

To recap, Bitcoin first broke through the $100,000 barrier in December, following Trump’s surprise victory in the November elections. It reached a peak of over $109,000 just before his inauguration in January. However, the mood quickly shifted after that, as Bitcoin experienced a sharp pullback, hitting a low just below $75,000 following Trump’s tariff threats in early April.

While Bitcoin’s retreat was significant, the altcoin market suffered even greater declines, with Solana (SOL) and Ether (ETH) seeing drops exceeding 60% from their highs. Since then, however, both Bitcoin and traditional financial markets have bounced back, with the Nasdaq and S&P 500 now trading at higher levels than before Trump’s tariff announcement.

The recent jump back above $100,000 is largely attributed to expectations surrounding a potential trade deal between the U.S. and the U.K., which has improved overall market sentiment. This shift in investor mood is helping fuel further demand for Bitcoin as both a risk asset and a store of value.

Institutional Capital Flows Drive Bitcoin’s Rally

According to Geoff Kendrick from Standard Chartered, the driving force behind Bitcoin’s resurgence is the growing inflow of institutional capital. “The dominant story for Bitcoin has shifted,” Kendrick said. “It’s now about capital flows, which are coming in many forms.”

Kendrick pointed out that there has been a notable increase in inflows into Bitcoin’s spot ETFs, which have been a significant point of focus for institutional investors. While some skeptics have questioned these flows due to the offsetting basis trades (where funds short Bitcoin futures to capture small yields), Kendrick emphasized that the lack of movement in these hedging strategies suggests the inflows are indeed real and driven by institutional interest.

In addition, Kendrick highlighted that the upcoming 13F filings, which report institutional Bitcoin holdings, will offer further confirmation of growing institutional exposure. He expects that major players, such as MicroStrategy (MSTR), will continue to increase their Bitcoin holdings, further supporting the asset’s rise.

Given the growing institutional demand and the improving sentiment around Bitcoin, Kendrick has raised his price target for the cryptocurrency. His initial $120,000 target for Q2 may now be too conservative, as the outlook for Bitcoin’s price appears even more promising.