Bitcoin Smashes ATH: Here’s What’s Fueling the Frenzy

Digital gold just got shinier—Bitcoin rocketed past its previous peak, leaving traders scrambling and Wall Street ’experts’ eating their spreadsheets. Here’s why the rally won’t quit.

The Halving Halo Effect

Miners got their block rewards slashed in half last month—classic supply shock meets turbocharged demand. Scarcity narrative? Check.

ETF Onslaught Goes Mainstream

BlackRock’s spot ETF crossed $25B in AUM this week. When boomers start FOMO-ing, you know we’ve hit escape velocity.

TradFi’s Inflation Tantrum

With the dollar bleeding purchasing power (thanks, Fed), institutions are treating BTC like a monetary life raft. Gold 2.0? More like Gold on algorithmic steroids.

Cynical take: Watch hedge funds ’discover’ Bitcoin... right after accumulating at sub-$60k. The game’s transparent—but the blockchain isn’t going anywhere.

U.S. equities 

The rally mirrors the broader recovery in U.S. equities, despite Wednesday’s sell-off on Wall Street. Since late April, the S&P 500 has climbed 15%, while the Nasdaq is up more than 21%. Analysts attribute the bounce to growing Optimism that President Trump’s trade policies may be less aggressive than initially feared.

After introducing steep tariffs in early April—including a blanket 10% import tax and additional penalties for Chinese goods—the WHITE House signaled a partial retreat.

 A 90-day pause on the most severe measures was announced last week by Treasury Secretary Scott Bessent following negotiations with Chinese officials.

Bitcoin initially fell to a two-month low of $76,000 shortly after TRUMP unveiled the tariffs, reflecting market fears over a broader global slowdown. 

Despite Bitcoin’s reputation as a hedge against traditional financial assets, it often trades in tandem with risk-on equities, especially tech stocks.

What’s going on with Bitcoin? 

Some of Bitcoin’s momentum appears driven by crypto-native catalysts. Enclave Markets CEO Phil Wirtjes said the rally was “likely aided by policy advancements,” particularly bipartisan progress on stablecoin legislation.

A draft bill that WOULD establish clearer rules for USD-backed digital tokens has gained traction in the Senate.

Institutional demand has also picked up. Spot Bitcoin ETFs attracted $329 million in inflows over the last 24 hours. 

Bitcoin’s latest rally raises questions about how much of its performance is driven by macro versus crypto-native factors. 

While regulatory clarity and ETF inflows are key tailwinds, the correlation with stocks suggests that investor appetite for risk remains a dominant force in both arenas.