Bitcoin (BTC) Breaks $100K Again as Macroeconomic Conditions Turn Favorable

Bitcoin’s recovery is being driven by easing trade tensions, a surge in capital inflows, and sustained institutional demand

Bitcoin (BTC) has recaptured $100,000 for the first time in more than three months, rising to a level just 3.6% off its all-time high. This increase occurs as tariff tensions between China and the United States subside and macroeconomic circumstances improve again.

According to Bitfinex research, favourable macroeconomic fundamentals and considerable institutional demand can maintain Bitcoin on a bullish trajectory in the meantime. Analysts believe that when macro triggers return to the forefront, Bitcoin will continue to outperform equities and other risk assets. 

Bitcoin Reclaims $100K

The Federal Reserve’s optimistic statements on the rate trajectory in light of the US tariff situation are one factor driving the market’s renewed confidence. The positive comments have formed a backdrop that has bolstered Bitcoin’s rebound and paved the way for a renewed drive to new ATHs.

According to Bitfinex experts, China has postponed retaliatory tariffs against the United States, citing “backchannel progress” between the two governments. The market currently faces lower geopolitical tail risk and sustained fiscal support, and with rate reduction still on the table, risk assets, led by Bitcoin, may perform well. 

Bitcoin’s revival has sparked a new wave of capital inflows, boosting market liquidity and participation. Some investors are re-entering the market, while others are reducing risk and taking profits. Bitfinex stated that the achieved cap reflects the renewed capital infusion. This indicator calculates the aggregate cost basis of all coins in circulation and indicates how much capital flows into the market over time.

Institutional Demand Becomes Steady

In addition to Bitcoin’s market cap reaching a new high, U.S. spot Bitcoin exchange-traded funds (ETFs) have had enormous inflows over the last two weeks.

Analysts’ observations of inflow patterns indicate that ETF flows are becoming less associated with short-term pullbacks. The demand indicates consistent allocation from market participants, not opportunistic buying, driven by portfolio mandates rather than retail speculation.

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