Bitcoin has finally broken its months-long stagnation, reaching $95,000 for the first time since late February—a milestone that has investors wondering if the cryptocurrency is poised to break the $100,000 barrier. With an impressive 15% gain over the past 30 days, Bitcoin’s sudden momentum has caught the attention of both retail and institutional investors.
What’s Driving Bitcoin’s Remarkable Turnaround?
After weeks of lackluster performance and uncertainty, three key factors appear to be powering Bitcoin’s resurgence:
1. The Return of Spot Bitcoin ETF Inflows
One of the most significant catalysts behind Bitcoin’s price surge has been the renewed interest in spot Bitcoin ETFs. After a period marked by consistent outflows during heightened tariff uncertainty, investors are now flooding back into these investment vehicles.
The numbers tell the story: On April 25 alone, nearly $1 billion flowed into the iShares Bitcoin Trust (NASDAQ: IBIT), and the week of April 21-25 saw approximately $3 billion in total inflows across spot Bitcoin ETFs.
“If money is flowing into the spot Bitcoin ETFs, the price of Bitcoin is likely to go up,” noted market analysts tracking the correlation between ETF activity and Bitcoin price movements. This simple relationship has become a reliable indicator for Bitcoin’s trajectory.
2. Shifting Investor Perception
The second factor fueling Bitcoin’s rally is a fundamental shift in how investors perceive the cryptocurrency. Rather than viewing Bitcoin as merely a speculative, high-risk asset, more investors are now embracing it as a potential long-term store of value and hedge against global economic uncertainty.
This perception shift comes at a time when traditional safe havens are also seeing increased interest. Gold prices have reached all-time highs, but now some of that “flight to safety” capital appears to be finding its way into Bitcoin—often referred to as “digital gold.”
While debate continues about whether Bitcoin truly deserves the “digital gold” moniker, the cryptocurrency shares several key characteristics with the precious metal:
- Inherent scarcity with a fixed supply cap
- Global, non-sovereign status outside the control of any central bank
- Disinflationary properties through its algorithmic supply control
ALso Read: Better Buy in 2025: XRP (Ripple) or Bitcoin?
3. Global Supply Shock
The third factor behind Bitcoin’s price surge is what industry insiders are calling a “global supply shock.” In simple terms, there’s not enough Bitcoin available to meet growing demand.
Several indicators point to this supply constraint:
- Bitcoin reserves on major cryptocurrency exchanges have fallen to three-year lows
- Bitcoin ETFs are continuously purchasing Bitcoin, further depleting available supply
- Long-term holders are removing Bitcoin from circulation
BlackRock (NYSE: BLK), the financial giant behind the iShares Bitcoin Trust, highlighted this potential supply shock in stark terms: “If every millionaire in the U.S. asked their financial advisor to get them 1 bitcoin, there wouldn’t be enough.”
This scarcity is mathematically enforced—Bitcoin’s lifetime supply is capped at 21 million coins. According to BlackRock’s proprietary data, approximately 3 to 4 million coins have already disappeared from circulation and are “permanently inaccessible.”
Is Bitcoin’s Rally Sustainable?
Many analysts remain bullish about Bitcoin’s prospects for the remainder of 2025. The combination of renewed ETF inflows, changing investor sentiment, and supply constraints creates what some call a “perfect storm” for continued price appreciation.
“Bitcoin has finally turned the corner and could be on its way to zooming past the $100,000 price level,” according to cryptocurrency market observers.
For investors hoping to gauge the sustainability of this rally, spot Bitcoin ETF inflow data remains the key metric to watch. As long as institutional money continues flowing into these vehicles, Bitcoin’s upward momentum is likely to continue.
Market participants will be watching closely to see if Bitcoin can sustain this momentum and finally break through the psychologically important $100,000 barrier in the coming weeks.
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