Bitcoin Reaches $104,000 Amid ETF Inflows

Bitcoin surged past $104,000 in May 2025, driven by key market factors including institutional ETF flows and political developments in the U.S.

The surge matters as it demonstrates strong market recovery and championed investor confidence, potentially influencing broader economic dynamics.

The leap in Bitcoin prices features over 3% growth, reaching a milestone not attained since January 31. This surge coincided with the announcement of a major trade agreement between the U.S. and the U.K., propelling momentum further.

Several crucial figures have shaped this trend. U.S. President Donald Trump’s bullish remarks on market potential highlighted positive sentiment.

“Markets could go a lot higher,” reflecting on the positive market sentiment following his announcement at the Saudi-U.S. Investment Forum in Riyadh.

Additionally, ETF research has shown Bitcoin ETFs achieving a record-setting $40.33 billion in lifetime flows. James Seyffart, an Analyst at Bloomberg ETF Research, noted, “Spot Bitcoin ETFs have reached a record $40.33 billion in lifetime flows, signaling strong institutional conviction.”

The financial ramifications have been substantial. Bitcoin short positions faced a $400 million liquidation, impacting bearish positions significantly. Ethereum and other cryptocurrencies have benefited collectively, with notable upticks in valuations.

Traditional markets responded favorably, with Nasdaq and S&P 500 closing higher. This optimism reflects across sectors, augured by Coinbase’s 24% rise as it nears S&P 500 index inclusion treatments.

The ongoing market response illuminates the broader impact of heightened institutional commitment. ETF inflows’ resilience signifies a growing inclination for sustained positions, which historically precedes further rallies. Experts foresee potential for continued upward movement as these conditions persist.