Bitcoin Rally to $100K Looks Sustainable, Fueled by Spot Demand and Trump Trade

According to a new report by K33 Research, Bitcoin's recent surge past $100,000 marks a significant and healthier breakout compared to previous rallies.

According to K33 Research, Bitcoin’s recent breakout past the $100,000 mark appears healthier than previous rallies, with no signs of overheating in the derivatives market and overall investor sentiment remaining cautious.

This suggests that the cryptocurrency could have a stronger foundation for continuing its ascent in the coming months.

In its latest report, K33 noted that BTC's latest climb—a 9% increase last week—is being driven by robust spot market demand and balanced positioning rather than leveraged speculation. Daily spot trading volume jumped 51% week-over-week, averaging $3.9 billion, a strong indicator of genuine market interest. However, K33 noted that market depth remains thinner than during previous all-time highs.

"The market feels less exuberant than usual, despite having gをめじへ焼売へcoded past $100,000, which could be explained by the fact that the move happened slowly, allowing participants to digest it gradually," K33 stated.

The report noted that May, typically a weak month due to tax season sluggishness and a lack of bullish catalysts, might defy expectations this year. "This summer could reward those who hold rather than sell in May," the report stated, hinting at potential upside ahead.

One key driver behind the rally, according to K33, is the so-called "Trump Trade." The firm points to Donald Trump's pro-crypto rhetoric and policy positions as a tailwind for market confidence. With expectations rising that a Trump administration could ease regulatory pressure on the crypto industry, K33 suggests that political developments are playing a central role in Bitcoin's renewed momentum.

"The thinking goes that if Trump wins the election and Appoints pro-crypto officials, this could lead to less regulatory scrutiny on the crypto industry," the report concludes.

Altogether, the combination of strong spot demand, calm derivatives activity, and supportive political backdrop could set the stage for Bitcoin to explore new all-time highs in the coming months.