Bitcoin (BTC) is trading around $104,000 on Monday, maintaining stability after a strong 10.44% weekly gain. The digital asset continues to climb toward its all-time high of $109,588, fueled by improving macroeconomic sentiment and robust institutional demand. As global trade tensions ease between major economies, risk-on assets like Bitcoin are gaining momentum, drawing increased attention from investors seeking high-growth opportunities in the crypto market.
Global Trade Deal Sparks Risk-On Market Sentiment
A major catalyst behind the recent surge in investor confidence is the newly announced 90-day tariff reduction agreement between the United States and China. According to Bloomberg, the deal slashes U.S. tariffs on Chinese goods from 145% to 30%, while China has agreed to reduce its tariffs on American imports from 125% to 10%. This breakthrough follows high-level negotiations held in Geneva over the weekend, led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng.
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This de-escalation in trade tensions has triggered a broad risk-on sentiment across financial markets. Investors are increasingly reallocating capital toward higher-risk, higher-reward assets—including Bitcoin—as geopolitical uncertainty recedes. The positive momentum was further amplified by a separate U.S.-UK trade agreement, which reduces British tariffs from 5.1% to 1.8% and grants faster access for American goods into the UK market.
With two major trade deals unfolding within a week, market participants view this as a signal of improving global economic cooperation. For Bitcoin, this macro backdrop provides fertile ground for price appreciation, especially as it approaches critical resistance levels near $105,000.
Institutional and Corporate Adoption Accelerates
Beyond macroeconomic tailwinds, on-chain and corporate developments are reinforcing Bitcoin’s growing legitimacy as a strategic reserve asset.
Japanese investment firm Metaplanet made headlines Monday by announcing the acquisition of 1,241 BTC at a cost of $125.3 million. This purchase increases the company’s total Bitcoin holdings to 6,796 BTC, underscoring a deepening trend of corporate treasury diversification into digital assets. Such moves mirror earlier strategies adopted by firms like MicroStrategy, reinforcing long-term confidence in Bitcoin’s value proposition.
Institutional appetite remains strong as well. Data from Coinglass reveals that U.S. spot Bitcoin ETFs attracted nearly $920.9 million in net inflows last week—marking the fourth consecutive week of positive flows since mid-April. This sustained buying pressure suggests that institutional investors continue to view Bitcoin as a hedge against inflation and currency devaluation, particularly in an environment of easing global trade restrictions.
This dual engine of corporate balance sheet adoption and ETF-driven institutional investment is creating a powerful foundation for sustained price growth. As more traditional finance players enter the ecosystem, Bitcoin's role as a macro-sensitive asset becomes increasingly pronounced.
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Bitcoin Price Forecast: $105K Resistance in Focus
Technically, Bitcoin broke above the key daily resistance level of $97,700 on Thursday, rallying nearly 8% before pausing near $105,000 over the weekend. While a slight pullback occurred on Sunday, BTC has stabilized around $104,000, indicating strong underlying demand.
The immediate price action hinges on whether Bitcoin can achieve a decisive daily close above $105,000. A successful breakout could pave the way for a retest of the all-time high at $109,588—last seen on January 20—and potentially open the door for new record highs if momentum continues.
However, caution flags are emerging on the technical front. The Relative Strength Index (RSI) on the daily chart is currently at 74—well above the 70 overbought threshold—and showing early signs of downward momentum. This suggests that bullish exhaustion may be setting in, with short-term traders taking profits after the recent rally.
If buying pressure fades and the RSI dips below 70, it could confirm weakening momentum and increase the likelihood of a deeper correction. In such a scenario, Bitcoin might retest the psychologically significant $100,000 support level—a zone that has historically acted as strong demand during prior pullbacks.
Nonetheless, the broader trend remains bullish as long as $100,000 holds as support. With favorable macro conditions and consistent institutional inflows, the path of least resistance still points upward.
Frequently Asked Questions About Bitcoin and Crypto Markets
What drives Bitcoin’s price movement?
Bitcoin’s price is influenced by supply and demand dynamics, macroeconomic factors (like inflation and interest rates), regulatory news, institutional adoption, and global risk sentiment. Events such as ETF approvals or international trade agreements can significantly impact investor behavior.
Why do companies buy Bitcoin for their treasuries?
Corporations purchase Bitcoin as a long-term store of value and hedge against fiat currency depreciation. With a capped supply of 21 million coins, BTC is seen by many executives as “digital gold” capable of preserving capital over time.
What is the significance of Bitcoin ETF inflows?
Sustained inflows into U.S. spot Bitcoin ETFs indicate growing trust from retail and institutional investors. These funds provide regulated exposure to BTC without requiring direct custody, lowering entry barriers and expanding market participation.
How does global trade policy affect cryptocurrency markets?
Easing trade tensions often boost investor confidence and encourage risk-taking. When global economies cooperate, capital flows into innovative sectors—including blockchain and digital assets—making crypto more attractive during periods of economic optimism.
What happens if Bitcoin fails to break $105,000?
Failure to surpass $105,000 could lead to consolidation or a pullback toward $100,000. However, unless there's a fundamental shift in market sentiment, this would likely be a temporary correction rather than a reversal of the bull trend.
Is now a good time to invest in Bitcoin?
Timing the market is challenging. While Bitcoin is near record highs, many analysts believe its long-term trajectory remains positive due to limited supply, increasing adoption, and macro tailwinds. Dollar-cost averaging can help mitigate volatility risks for new investors.
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