Bitcoin surged to nearly $104,000 on Friday, marking a pivotal moment in the cryptocurrency’s 2025 trajectory. The price spike, which pushed BTC to a three-month high, reflects a broader shift in market sentiment driven by macroeconomic developments, institutional adoption, and technical momentum. With the $100,000 psychological barrier now firmly behind it, Bitcoin continues to build on a third consecutive week of gains.
This rally wasn’t isolated—it was fueled by a combination of geopolitical trade optimism, massive short liquidations, and record inflows into spot Bitcoin ETFs. Meanwhile, Ethereum and major altcoins mirrored the bullish trend, with ETH jumping 16.5% following its highly anticipated Pectra upgrade.
Catalysts Behind Bitcoin’s Surge
The immediate catalyst for Bitcoin’s rally was US President Donald Trump’s announcement of a new trade deal with the UK, coupled with signals that tariffs on Chinese imports could be significantly reduced. While the UK agreement has limited direct economic impact, the broader implication—that the US is moving toward de-escalating global trade tensions—boosted investor confidence across risk assets.
Trump’s suggestion that China tariffs could drop from 145% to 50% sent shockwaves through financial markets. Such a move would ease supply chain pressures and reduce inflationary risks, creating a more favorable environment for speculative assets like cryptocurrencies.
Commerce Secretary Howard Lutnick further amplified optimism by revealing plans for dozens of upcoming trade deals in the next month. This wave of pro-trade rhetoric has reignited risk appetite, with capital flowing into high-growth sectors—including digital assets.
👉 Discover how global economic shifts are fueling the next crypto bull run.
Market Reaction: Short Squeeze and Massive Liquidations
Bitcoin’s rapid ascent caught many traders off guard—especially those betting against the market. Over the past 24 hours, nearly $400 million** in bearish Bitcoin short positions were liquidated, marking the largest single-day wipeout since November 2024. In contrast, only **$22 million in long positions were closed, underscoring a severe imbalance in market positioning ahead of the rally.
This lopsided leverage created ideal conditions for a short squeeze—a self-reinforcing cycle where rising prices trigger automatic sell-offs of short bets, further driving prices upward. With BTC breaking key resistance levels, algorithmic trading systems and trend-following funds likely added fuel to the fire.
The broader crypto market responded strongly. Total market capitalization for non-Bitcoin cryptocurrencies surged 10% to $1.14 trillion—the highest level since March 6. This indicates that Bitcoin’s strength is not occurring in isolation but is lifting the entire sector.
“Bitcoin is set to continue its surge in the coming weeks. Previous breakouts of this kind have resulted in gains of 63% to 143% over 9–26 weeks.”
— Trader Tardigrade (@TATrader_Alan)
Spot Bitcoin ETFs Hit $40 Billion Milestone
A major structural driver behind Bitcoin’s sustained rally is the explosive growth of spot Bitcoin ETFs. These regulated investment vehicles have now attracted over $40 billion in total inflows since their approval earlier in 2025. By offering institutional investors a compliant way to gain exposure to BTC without holding private keys, spot ETFs have significantly broadened the market’s investor base.
The success of these funds reflects growing acceptance of Bitcoin as a legitimate asset class. Asset managers, pension funds, and family offices are increasingly allocating capital to digital assets, viewing BTC as both an inflation hedge and a diversification tool.
Coinbase, one of the primary custodians for these ETFs, reported solid transaction revenue growth despite a slight dip in overall profit. Its core retail trading business saw a 17.3% year-over-year increase, signaling sustained demand from individual investors.
Additionally, Coinbase’s planned acquisition of Deribit—a leading crypto derivatives platform—for $2.9 billion in cash and equity highlights the convergence of traditional and decentralized finance. This move could strengthen regulatory compliance while expanding access to sophisticated trading tools.
👉 See how institutional adoption is reshaping the future of digital assets.
Ethereum and Altcoins Ride the Momentum
While Bitcoin led the charge, Ethereum delivered an even more impressive performance. ETH rallied 16.5% to $2,209.41, powered by the activation of the Pectra upgrade—the network’s most significant enhancement since the 2022 Merge.
Pectra introduces critical improvements in scalability, security, and developer experience, including optimized account abstraction and enhanced rollup support. These upgrades make Ethereum more competitive against emerging Layer 1 blockchains and reinforce its position as the dominant smart contract platform.
Other altcoins followed suit, with major tokens like Solana, Cardano, and Polkadot posting double-digit gains. The rising tide across the market suggests improving risk appetite and renewed faith in blockchain innovation.
What’s Next? Trade Talks and Technical Outlook
Markets are now focused on upcoming US-China trade negotiations scheduled to take place in Switzerland this weekend. The outcome could either validate the current optimism or trigger volatility if talks stall.
From a technical standpoint, Bitcoin’s breakout above $100,000 opens the door for further upside. Historical patterns suggest that such milestones often precede extended bull runs, especially when supported by strong fundamentals and institutional inflows.
Analysts point to previous breakouts—such as the move above $60,000 in 2021—as precedent for sustained momentum. If history repeats, BTC could see gains between 63% and 143% over the next several months.
Frequently Asked Questions (FAQ)
Q: What caused Bitcoin to break $100,000?
A: A combination of improved global trade sentiment—particularly around US-China tariff reductions—alongside strong institutional demand via spot Bitcoin ETFs and a massive short squeeze pushed BTC past $100k.
Q: How much leverage was liquidated during the rally?
A: Nearly $400 million in short positions were wiped out within 24 hours, compared to just $22 million in longs, indicating extreme bearish overexposure before the rally.
Q: Are spot Bitcoin ETFs still attracting investment?
A: Yes. Spot Bitcoin ETFs have now received over $40 billion in cumulative inflows, reflecting sustained institutional confidence in regulated crypto access.
Q: Did Ethereum also benefit from the market surge?
A: Absolutely. Ethereum rose 16.5% to $2,209 after activating its Pectra upgrade—the most significant network improvement since 2022.
Q: Could trade talks impact crypto prices this week?
A: Yes. Upcoming US-China trade discussions in Switzerland may influence market sentiment. Positive outcomes could extend the rally; negative results may trigger short-term pullbacks.
Q: Is this rally sustainable?
A: With strong fundamentals—including ETF inflows, low exchange reserves, and improving on-chain metrics—the rally appears structurally supported rather than purely speculative.
👉 Stay ahead of the next market move with real-time data and insights.
Final Thoughts
Bitcoin’s breakout above $100,000 is more than just a psychological milestone—it’s a signal of maturing market dynamics. Regulatory clarity, institutional adoption, technological progress across major blockchains, and macroeconomic shifts are converging to create fertile ground for sustained growth.
As traditional finance increasingly embraces digital assets, and global trade tensions show signs of easing, the foundation for a prolonged bull cycle appears solid. Whether you're an investor or observer, now is a critical time to understand the forces shaping the future of money.
Core Keywords: Bitcoin price surge, spot Bitcoin ETFs, $100k Bitcoin, crypto short squeeze, Ethereum Pectra upgrade, institutional crypto adoption, market liquidations