Key Takeaways:
Bitcoin has broken its all-time high and rallied over 40% in six weeks.
Cooling trade tensions and new U.S. trade deals have boosted investor risk appetite.
Rising ETF inflows suggest more upside ahead.
Bitcoin has punched through $109,114.88 on Wednesday, sealing a fresh all-time high after a 40% six-week surge as cooling U.S. trade wars lured risk capital back into crypto. Rising ETF inflows and a $1.2 billion short stack hint at more fireworks ahead.
The milestone follows Washington’s surprise tariff truce with Beijing and a limited U.K. pact, brightening the macro picture. With Bitcoin ETFs soaking up supply and shorts clustered near $108k, analysts say a squeeze toward $120k is now in play.
Crypto Markets Surge After Trump’s Trade Deals
The bullish momentum intensified after President Trump dialed back his aggressive trade rhetoric in recent days, signaling openness to new trade deals and cooling tensions with key partners.
That policy shift has reignited investor appetite for risk, with Bitcoin and major altcoins benefiting directly.
Earlier in May, the US and China announced an agreement to temporarily reduce tariffs on each other’s goods, signaling a cooling of trade tensions.
The agreement, delivered via a joint statement in Geneva, provides a 90-day window for both countries to negotiate further economic cooperation.
According to the deal, the U.S. will lower tariffs on Chinese imports from 145% to 30%, while China will reduce duties on American goods from 125% to 10%.
More recently, the US and the UK also announced a limited trade agreement, referred to as the “Economic Prosperity Deal.”
The agreement aimed to reduce tariffs and non-tariff barriers, enhancing market access and fostering economic collaboration between the two nations.
BlackRock’s Dominance in Bitcoin ETF Inflows
In Asia, high-net-worth investors are also reallocating capital, pivoting away from U.S. dollar-linked instruments toward gold, Chinese equities, and cryptocurrencies, reinforcing regional interest in Bitcoin.
A key factor behind this ATH is the aggressive net spot demand observed in both institutional and retail markets, driven not by leverage but by spot buying.
Leading the charge is BlackRock’s iShares Bitcoin Trust (IBIT), which has been dominating U.S. ETF inflows since mid-April.
In a recent note, Galaxy Digital analysts reaffirmed Bitcoin’s growing perception as a digital store of value, echoing comments from Jay Jacobs, Head of Thematics at BlackRock, who stated that countries are diversifying away from the U.S. dollar in favor of gold and now, Bitcoin.
Market Structure Supports Bullish Case
Market structure also supports the bullish case. Bitcoin has held above $100,000 for nearly two weeks, with recent closes near $106,500 marking historic strength.
Only four prior sessions have ended above the current level, making this breakout significant from a technical perspective.
Moreover, data from CoinGlass shows that around $1.2 billion in short positions are concentrated between $107,000 and $108,000. A continued climb could trigger forced liquidations, sending prices sharply higher toward $115,000–$120,000.
With ETF inflows rising — and Ethereum spot ETFs gaining traction — the environment favors further upside.
Data from Farside shows that Bitcoin ETFs have recorded consistent net inflows over the past five trading sessions, signaling renewed institutional confidence.
From May 14 to May 20, every day except saw net positive flows. In particular, May 19 stood out with a significant $667.4 million net inflow, followed by $329.2 million on May 20.
These figures suggest investors are increasingly positioning ahead of potential price breakouts, likely in response to improving macroeconomic sentiment and regulatory clarity.
Analysts warn of potential profit-taking, but so far, the profit-to-loss ratio on-chain remains below overheating levels (currently 99 vs. 200 threshold).
Bitcoin’s breakout to a new ATH has strong legs. If bulls maintain control and macro conditions hold steady — especially with the Fed under pressure from weak long-bond demand — the path toward $120,000 this month is realistic.
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