Bitcoin breaches new all-time high, surging past $100,000

The OG crypto token broke through the $100,000 mark for the first time in December last year and hit a record high of a touch above $109000.

Bitcoin breached a new all-time high, surging past $110,000 on Thursday.

The OG crypto token broke through the $100,000 mark for the first time in December last year and hit a record high of a touch above $109,000 on the day of Trump's inauguration in January.

However, since then, Bitcoin took a beating, falling to a low of $75,000. In May, the crypto surged again, threatening to break past the January high several times and finally doing so early on Thursday.

While the narratives supporting the crypto token are widely known, the real question now is whether risk-on or risk-off sentiment is boosting Bitcoin.

Previously, a run-up in big tech stocks boosted the token, and then safe-haven demand pushed Bitcoin higher in line with gold.

The debate of what is boosting the largest crypto continues to grow. The other important question is what is next for Bitcoin after hitting $110,000 for the first time.

Tony Sycamore, market analyst at IG, noted that the latest surge to ATH suggests that Bitcoin's fall to below $80,000 was a mini 'correction within a bull market.'

He noted, "A sustained break above $110,000 is needed to trigger the next leg higher towards $125,000."

According to K33's latest analysis, the price action will surpass the usual summer slump.

Even before the latest ATH, Standard Chartered Bank analyst Geoffrey Kendrick had said the $120,000 target by the end of the current quarter was an underestimation, suggesting more upside.

The sentiment in the market and investors' actions can be influenced by the forecasts provided by prominent financial institutions. Confident price forecasts from traditional financial institutions regarding cryptocurrencies often enhance the asset class's standing with institutional investors.

This is reflected in the price action, and options traders bet on $300,000 for Bitcoin.

Traders' expectations can be better understood by looking at the options market. Deribit is the biggest crypto derivatives market.

The most popular Bitcoin call options have strike prices of $120,000 and $300,000 with June 27 expiration dates, meaning there is a lot of bullish emotion.

ETF inflows of more than $4 billion in May alone indicate that the current rally is sustainable. Price forecasts for 2025 indicate that Bitcoin can reach $150-180K by the year-end.

The unprecedented interest in Bitcoin among institutional investors has supported the price increase significantly. Nearly every trading day in May saw capital inflows into US-listed spot Bitcoin ETFs, bringing the total to around $4.2 billion.

With a combined asset value of nearly $40 billion, these investment vehicles show that institutional investors are becoming increasingly confident in Bitcoin as an asset class.

Bitfinex Head of Derivatives Jag Kooner hinted at a potential climb toward $114,000 to $120,000 in the coming weeks, saying that the new high was reached following "a near-flawless setup" supported by geopolitical de-escalation, an improved regulatory environment, and macro boosts.

Michael Saylor's Strategy has accumulated over $50 billion in Bitcoin, and that increase in the number of tokens held by the firm is noteworthy and another boost for the token.

Earlier this month, Binance's founder, Changpeng Zhao, widely known as CZ, predicted that the Bitcoin would soar to $500,000 to $1 million.

While those bets seem like speculative dreams, the surge in Bitcoin over the last two years suggests that any number is a real possibility.

Many analysts who had previously bet that the current bull cycle for Bitcoin was over are now making a U-turn as they see the token hitting new all-time highs (ATHs).

Ki Young Ju, the CEO of CryptoQuant, has shifted his stance and tone. He acknowledges that he mistakenly believed the Bitcoin bull cycle had concluded two months prior.

If Bitcoin's performance in May continues into June, it may validate BTC's historical trends. Traditionally, the second quarter has shown positive momentum for Bitcoin.

The token has experienced a 28% increase this quarter, marking its fifth-best performance since 2013.

With Bitcoin at $110,000 and counting, new forecasts show even higher figures for this year.

That comes even as the debate rages on whether Bitcoin is a pro-risk asset or a safe haven. Regardless, institutional investors are clearly backing the asset as a new alternative to the dollar, indicating its potential for growth.

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