Bitcoin Eyes $105K as Coinbase Surges 24%; Rally Has More Room, Says Analyst
Bitcoin’s surge above $104,000 on Tuesday was fueled by several positive factors. Favorable inflation data, easing concerns about Federal Reserve pressure, and President Trump’s bullish market outlook all contributed to the rally. Coinbase’s upcoming inclusion in the S&P 500 index is also expected to significantly boost Bitcoin’s price, potentially unlocking $16 billion in buying pressure.
April’s Consumer Price Index (CPI) came in lower than anticipated, potentially reducing the pressure on the Federal Reserve regarding inflation. While Fed Chair Jerome Powell’s upcoming speech is anticipated to provide further policy guidance, the current market sentiment is optimistic. This positive mood is further amplified by President Trump’s comments at the Saudi-U.S. Investment Forum, suggesting potential for further market growth.
Bitcoin briefly touched $105,000 before a slight pullback, currently trading at approximately $104,400, a 2.4% increase over the past 24 hours. Most altcoins in the CoinDesk 20 Index also performed well, with Ethereum’s ether surging over 9% to $2,700. Eigenlayer’s EIGEN and EtherFi’s ETHFI tokens saw even more dramatic gains, exceeding 20-30%. The broader stock market also saw gains, with the Nasdaq and S&P 500 rising by 1.6% and 0.75%, respectively.
Market analysts are cautiously optimistic. Joel Kruger of LMAX Group notes that the market is currently consolidating after recent gains but anticipates further growth due to increased institutional interest and mainstream adoption, particularly highlighted by Coinbase’s inclusion in the S&P 500. Paul Howard of Wincent suggests that while altcoins are following the overall upward trend, institutional investment will likely become more selective, favoring resilient projects.
Bitfinex analysts, while noting a potential short-term consolidation around the $104,000-$106,000 resistance level, maintain a bullish long-term outlook. They predict a potential new all-time high in June, after a period of price stabilization above $100,000, and project a $150,000-$180,000 price target for Bitcoin by 2025-2026, citing increasing institutional adoption, expanding ETF availability, and a more positive regulatory environment in the US as key drivers.
