Bitcoin breaks through 100,000 USD, driven by institutional accumulation and favourable information from policies.

The price of Bitcoin recently broke through the $100,000 mark, marking the achievement of an important milestone. This breakthrough is the result of multiple factors, including the global economic situation, the layout of financial institutions, market liquidity conditions, macro policy direction, and investor sentiment.

As early as the end of April, Bitcoin began to show a trend independent of the US stock market, rising against the trend, laying the foundation for its subsequent challenge of the 100,000 USD mark.

The direct driving force behind this round of increases comes from the continued buying by institutional investors. By the end of last year, the asset scale of the Bitcoin ETF launched by a well-known asset management company had reached 34.3 billion USD, surpassing its gold trust fund of 33 billion USD. This phenomenon indicates that traditional financial institutions' long-term optimistic attitude towards Bitcoin is strengthening, creating conditions for the revaluation of Bitcoin's value. Meanwhile, the continuous accumulation of Bitcoin by several companies further consolidates the market buying power, attracting more new funds into the market and providing strong support for the rise in Bitcoin prices.

The liquidity situation in the cryptocurrency market is quietly changing. According to data platforms, in April this year, the issuance of a certain stablecoin reached as high as 5 billion USD, significantly enhancing the capital abundance in the crypto market. During this Bitcoin price increase, the previously common "blood-sucking" phenomenon, where Bitcoin rising leads to other cryptocurrencies falling, did not occur; instead, a prosperous scene of overall price increases emerged. The issuance of this stablecoin is closely related to the upcoming stablecoin bill in the United States, and it is expected that with the advancement of the relevant legislation, the issuance of this stablecoin may further increase in the future.

The increase in institutional holdings and the improvement in overall market Liquidity have created favorable conditions for Bitcoin to break through the $100,000 mark, while the improvement in the policy environment has further propelled the realization of this breakthrough.

On the evening of May 6, the Governor of New Hampshire officially signed a bill allowing the state to establish a "strategic Bitcoin reserve," authorizing the state treasury to invest no more than 5% of public funds in precious metals and digital assets with a market capitalization of over $500 billion (currently only Bitcoin qualifies). At the same time, the Arizona state legislature also passed a similar bill allowing 10% of public funds to be invested in digital assets such as Bitcoin. Although these measures have not yet been implemented, they undoubtedly greatly boosted market confidence.

In addition, on May 8th, the United States and the United Kingdom announced a new trade agreement that partially removes tariffs in certain areas. Previously, global financial markets (including stock markets and cryptocurrency markets) were affected by the negative sentiment brought about by the tariff war. The conclusion of this new agreement led the market to believe that the impact of the tariff war would gradually weaken, triggering a strong rise in Bitcoin prices.

Looking ahead, the expectation of the Federal Reserve lowering interest rates in the second half of the year is strengthening. Although there is still considerable uncertainty regarding the possibility of rate cuts in June and July, the market widely anticipates that the Federal Reserve may lower rates twice this year. As time goes on, this expectation may further strengthen, continuing to support Bitcoin prices.