The price of Bitcoin (BTC) has once again reached the $100,000 milestone. This threshold is not only psychologically significant but also signals growing confidence in the digital asset. The recent surge is the result of a combination of geopolitical developments, institutional involvement, and a solid network foundation.

Why Is Bitcoin Rising?

Current market dynamics show increasing investor confidence. Both long- and short-term holders (LTHs and STHs) continue to accumulate. Bitcoin‘s realised cap — a metric indicating the value at which the circulating supply last moved on-chain — recently hit a record high of $891 billion. This points to sustained capital inflow and strengthens the belief that Bitcoin is increasingly viewed as a serious financial asset.

The macroeconomic context also plays a role. Geopolitical factors such as trade talks between the US and China, along with possible interest rate cuts by the Federal Reserve, are prompting investors to consider alternative assets like Bitcoin. The renewed interest from institutional players, including large asset managers and sovereign funds, amplifies this effect.

ETF Flows Turn Positive

Remarkably, spot Bitcoin ETF inflows have turned positive again. In a single day, $142 million was invested in these products, with Ark Invest‘s ARKB receiving the largest share. These funds make it easier for traditional investors to gain exposure to Bitcoin, accelerating the adoption process.

Market Sentiment: Optimistic Yet Cautious

The Crypto Fear & Greed Index currently stands at 65, indicating ‘Greed‘. This reflects a broadly positive sentiment among crypto investors. At the same time, there is a degree of caution, especially due to profit-taking that amounts to billions of dollars weekly. However, on-chain data shows that demand remains strong enough to absorb this selling pressure.

According to analytics firms like Glassnode, a structural shift has been visible since late 2023: more capital is consistently flowing into the market than out. This suggests a stable foundation for a potential new bull market.

What Does This Mean for Investors?

The current situation shows that Bitcoin has once again reached a key point in its market cycle. The combination of institutional interest, strong fundamental indicators, and positive market sentiment signals growing trust in Bitcoin‘s future as an asset. Whether this marks the start of a long-term bull run remains to be seen.

What is clear, however, is that in times of increasing uncertainty, investors continue to seek reliable alternatives. And Bitcoin — with its transparency, global accessibility, and growing adoption — remains a standout choice.

Disclaimer: This is not financial advice. Always consider conducting your own research and consulting a professional advisor.