Bitcoin Hits US$106,000, Driven by Policy and Investment Growth

Bitcoin rose above US$106,000 on Sunday before settling at US$105,429, marking a 0.8% decline over the past 24 hours, according to data from crypto platform Lemon. Other major cryptocurrencies experienced mixed performance.

Solana dropped 3.5% to US$165.7, Cardano fell 1.6% to US$0.70, and XRP declined 0.4% to US$2.30. Meanwhile, Ethereum and Binance Coin (BNB) posted modest gains of 0.7% and 0.4%, respectively.

Bitcoin’s recent surge has been attributed to growing institutional investment and key policy developments, including recent statements by US President Donald Trump. On May 8, bitcoin surpassed the US$100,000 milestone following a bilateral agreement between the United States and the United Kingdom to reduce tariffs—a move viewed as easing trade tensions. This marked the first agreement of its kind since Trump implemented broader tariff measures during his previous term.

Lemon analysts pointed to a confluence of factors driving bitcoin's performance: record-breaking institutional inflows, heightened geopolitical uncertainty, and increasing recognition of bitcoin as a reliable store of value. The firm highlighted the impact of bitcoin exchange-traded funds (ETFs), particularly BlackRock’s, which have attracted billions of dollars in investments in recent weeks. These inflows have outpaced even the largest gold-backed funds, exerting upward pressure on bitcoin prices due to limited supply.

Last week, bitcoin climbed above US$105,000 again after the United States and China announced a 90-day ceasefire in their ongoing trade conflict and agreed to reduce tariffs implemented in recent years.

Bitcoin previously reached an all-time high of US$109,500 on Jan. 20, coinciding with Trump’s inauguration. However, the price dropped to US$103,000 after his speech, which centered on broader economic topics rather than cryptocurrency regulation. Bitcoin remained below US$100,000 for several months thereafter, hitting a recent low near US$80,000.