Bitcoin Inches Closer to All-Time High—Here’s What’s Driving Its Price

Bitcoin is traded only with shy record levels, increasing together with the renewed interests in the funds that are trade on the stock market and changing economic signals that pull the capital of investors in the assets of the risk.

The cryptocurrency rose over $ 105,700 on Sunday night, extending gains made in the last two weeks. The assets are traded just over $ 106,500, Coingecko data show.

Although the previous sets were often triggered on speculation, this one takes place in the midst of heavy flows in the Bitcoin ETF Spot, stable expectations of interest rates and renewed discussions about inflation because the tariffs are returning to the focus on key imports.

“Looking in advance, we believe there are additional space for digital property, especially since Coinbase’s inclusion in S&P 500 is approaching May 19,” the QCP Capital, based in Singapore in a note last week.

“History tells us that the index involvement acts as a short -term catalyst, because passive managers adjust their extracts to follow the scale more closely,” he added.

The Spot Bitcoin ETF has attracted more than $ 2.8 billion in net inflows in the first half of May, according to Sosovalue data.

The biggest one -day gain occurred on May 2, when the streams reached $ 674.9 million. Cumulative inflows amounted to $ 41.77 billion from May 16, and the total net assets surpassed $ 122 billion.

The macro background also contributed to the rally.

Federal reserves held their reference interest rate unchanged at 4.25% to 4.50%, maintaining a cautious attitude in the midst of mixed economic signals.

Last week, Jerome Powell’s chairman said the central bank remains ready to respond to evolutionary information, but did not offer indications of direct shifts in politics.

This is partly because inflation remains concern, especially since new trade policies begin to break through supply chains – a dynamic that could strengthen Bitcoin attraction as protection against inflation if they press the prices still persevere.

A temporary 90-day contract to reduce the tariff between the US and China offered little reliefs, but elevated duties remain in sectors, including electric vehicles, semiconductors and consumer electronics.

Walmart, the largest seller in the country, said last week that he was planning Increase prices This month and in the early summer, while a tariff slap starts to reach their shelves.

“The size and speed at which these prices come to us are somewhat unprecedented in history,” said Walmart Financial Director John David Rainey Wall Street Journal.

The company has not issued a prognosis for profit for the current quarter, citing uncertainty about how much costs it can absorb to remain competitive.

Walmart adds broader concerns that increasing prices associated with trade could complicate the appearance of inflation, which will make investors re -examine that permanent pressures of prices can shape monetary policy and the risk of mood in all assets classes, including Kripto.