Bitcoin (BTC) is closing in on its all-time high as the cryptocurrency market rebounds from the lows seen in March and April of this year.
The largest cryptocurrency by market capitalization is currently trading right around $107,000 U.S., near its record high of $109,000 U.S. reached on Jan. 20 of this year, the date of President Donald Trump’s inauguration.
Analysts say that Bitcoin and other crypto are being lifted by positive regulatory developments and growing institutional buying.
Bitcoin options markets are flashing bullish signals and many analysts expect the cryptocurrency to be trading above $110,000 U.S. this summer.
It’s a big reversal for Bitcoin, whose price had languished around $80,000 U.S. for much of March and April and frequently dipped below that level.
The rise in Bitcoin comes as other cryptocurrencies such as Ethereum (ETH), Solana (SOL), and XRP (XRP) also experience a bounce off their recent lows.
Investors’ risk appetite is also back after U.S. import tariffs were lowered on many countries such as China and a trade deal was struck with the United Kingdom (U.K.).
Capital is once again flooding into Bitcoin exchange-traded funds (ETFs) after months of weak inflows. U.S.-traded spot Bitcoin ETFs pulled in $667 million U.S. in net inflows on May 19, highlighting rising demand.
The global cryptocurrency market is now approaching a $4 trillion U.S. market capitalization as enthusiasm for digital assets grows.
While the current rebound is encouraging, some analysts caution that the summer months have been historically slow for cryptocurrencies and the time of year when prices most often fall.
Still, the current price trajectory shows gathering strength for Bitcoin, whose price has now risen 14% this year.
