Bitcoin and Crypto Are Surging: Here’s What’s Fueling the Rally
Trump's tariff shift, Powell stability, and record Bitcoin ETF inflows spark fresh optimism in digital assets.
Bitcoin is back in the driver’s seat.
On Wednesday, the bellwether cryptocurrency surged past $94,000, riding a powerful wave of macro catalysts, institutional flows, and retail FOMO. Ethereum (ETHUSD), XRP (XRPUSD), and Solana (SOL) weren’t far behind, all posting sharp gains as the broader crypto market ripped higher. The rally pushed Bitcoin (BTCUSD) to $94,617 at its intraday peak — its highest since early March — before settling slightly lower at $93,931.
At the heart of the surge? A surprising shift in tone from President Donald Trump and a series of favorable developments across the crypto ETF space.
Also Read: 4 Stocks Poised for Big Gains Amid Major Transformations
Trump’s Softened Trade Rhetoric Triggers a Crypto Rebound
Just weeks after shaking markets with sweeping tariff threats dubbed “Liberation Day,” Trump walked back his tone. Investors took notice. His recent reassurance that he has no intention of removing Federal Reserve Chair Jerome Powell helped calm fears of political interference in monetary policy. Markets responded almost instantly.
“The main drivers behind this rally were the dovish comments from U.S. President Donald Trump regarding trade tariffs, as well as his statement that he has no intention of dismissing Federal Reserve Chair Jerome Powell,” said Linh Tran, an analyst at Xs.com.
That softening, paired with a tumbling U.S. dollar, gave traders a green light to pile back into risk assets. The S&P 500 (SPX) jumped as much as 2.3% on Wednesday, and crypto was off to the races. Bitcoin, long touted as a hedge against macroeconomic volatility, suddenly looked like the safe play.
ETF Inflows Ignite Institutional Demand
While the political pivot laid the foundation, institutional capital poured fuel on the fire. On Tuesday, spot Bitcoin ETFs logged a staggering $936 million in net inflows, their biggest day since January. The iShares Bitcoin Trust ETF (NASDAQ: IBIT), managed by BlackRock (NYSE: BLK), led the charge with $194.3 million in fresh capital, pushing its net assets to $57.2 billion.
Other major players followed suit. The Fidelity Wise Origin Bitcoin Fund (BATS: FBTC) added $25.8 million, ARK 21Shares Bitcoin ETF (BATS: ARKB) brought in $26.7 million, and Bitwise Bitcoin ETF (NYSE Arca: BITB) secured $22.1 million.
Ethereum funds also saw inflows, with Fidelity Ethereum Fund (BATS: FETH) pulling in $31.6 million. The total value of net assets across Ethereum spot ETFs reached $5.6 billion. The consistency, especially the lack of outflows, showed that institutions are sticking around for this rally.
Speaking with CNBC, Joel Kruger, market strategist at LMAX, stated:
This recent surge primarily reflects a market seizing the opportunity to capitalize on a dip in an asset that consistently proves its value as a compelling option for portfolio diversification and hedge against macroeconomic uncertainty and U.S. dollar volatility.
Read Now: Why This Low-Float Biotech Stock Looks Ripe for Another Big Breakout
Short Squeeze and Altcoin Season Hype
Fueling the fire further, short sellers found themselves on the wrong end of a breakout. Bitcoin’s rapid climb triggered over $300 million in short liquidations across major exchanges in just 24 hours, according to CoinGlass. That forced many traders to buy back in at higher prices, adding rocket fuel to the price action.
Altcoins rode Bitcoin’s coattails. Ethereum gained 9.6%, XRP rose 7.4%, and Solana climbed 8.2% on the day. However, Bitcoin dominance — a measure of Bitcoin’s share of total crypto market value — also rose sharply, a sign that the market is still Bitcoin-led.
“We’re clearly in a Bitcoin season,” said analysts at B2BINPAY. Should the price of Bitcoin break through the upper $90k level, the B2BINPAY analysts believe a new all-time high could be in the cards.
But the analysts also warned: “In this scenario, caution is warranted—it’s like walking on thin ice.”
Next Stops: $95K, $100K, or $200K?
With Bitcoin hovering near key resistance at $95,000, analysts say a break above could open the door to a clean run at $100,000 — a psychologically significant milestone. Beyond that, some see even more explosive potential.
Arthur Hayes, former BitMEX CEO and now CIO at Maelstrom, believes the recent dip to $74,500 marked the bottom. He attributes Bitcoin’s bullish turn to U.S. policy shifts that will inject liquidity into markets. In his recent Substack post, Hayes wrote that Trump’s tariff adjustments, paired with Treasury buyback plans, mark a turning point for Bitcoin.
He even floated a bold target, predicting that Bitcoin could surpass its previous high of $110,000 and potentially reach $200,000, citing parallels to the $2.5 trillion liquidity wave of late 2022.
Hayes wrote:
Once Bitcoin breaches $110,000, the previous all-time high, it will likely surge, further increasing dominance. Maybe it just misses $200,000. Then the rotation begins from Bitcoin into shitcoins. AltSzn: Arise Chikun!
A Perfect Storm or Just the Beginning?
With geopolitical tensions easing, monetary policy turning dovish, and institutions piling in through ETFs, Bitcoin and its crypto peers are enjoying a moment in the sun. Whether it’s the start of a sustained bull run or just a sharp rebound remains to be seen. But for now, the momentum is undeniable — and the crypto market is thriving on it.
Read Next: Why This Electric Vehicle Market Player’s Proprietary Battery-Swapping Technology is a Game-Changer
Join the Discussion in the WVC Facebook Investor Group
Do you have a stock tip or news story suggestion? Please email us at Invest@WealthyVC.com.
Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.
