The resurgence of Bitcoin above $100,000 has invigorated the wider cryptocurrency market, which had seen several weeks of price stagnation. After a prolonged period of correction and stability, Bitcoin has successfully overcome various resistance levels recently, although more hurdles remain before it can achieve new records beyond $109,000.<\/p>\n
While it might seem that Spot Bitcoin ETFs are the driving force behind this rally, the data tells a different story. ETF inflows<\/a> have averaged only $129 million over the past two days, a stark contrast to the $700 million-plus daily inflows witnessed during the last surge in January. The current price increase appears to be fueled by a combination of macroeconomic factors and specific market trends rather than solely ETF activity.<\/p>\n A key factor boosting market sentiment is the recent U.S.-U.K. trade agreement announced on May 8, 2025. This deal keeps the existing 10% U.S. tariff on British goods while reducing U.K. tariffs to 1.8% and enhances access to American products. As fears of escalating trade tensions diminish, capital is once again flowing into riskier assets like Bitcoin, which had earlier plummeted to $74,000 in early April.<\/p>\n Unlike previous spikes beyond the six-figure mark, this rally is occurring under distinctly different market circumstances. A notable difference is Bitcoin’s increased dominance, which is now over 60%.<\/p>\n This high level of dominance suggests a stronger support system for the current price trends. Analyst Rekt Capital has noted the potential for<\/a> Bitcoin dominance to rise to 71% in the future.<\/p>\n <\/p>\n On-chain metrics bolster the case for the sustainability of this rally. A decline in exchange balances has supported the upward trend. This trend aligns with inflows of stablecoins to exchanges, which typically signal increased buying activity.<\/p>\n<\/span>Can BTC\u2019s Surge Above $100,000 Be Maintained?<\/span><\/h2>\n