Key Highlights

• Bitcoin is closing in on the $105,000 threshold. Ethereum’s token revealed a sharp 9% increase, reaching around $2,700.
• The crypto market is witnessing heightened institutional interest and mainstream acceptance, with Coinbase’s entry into the S&P 500 index being a notable factor, according to market strategist Joel Kruger.
• Analysts from Bitfinex believe Bitcoin may face resistance around $106,000, hinting at a likely period of consolidation before any further upward movement.

Bitcoin BTC rose past $104,000 driven by favorable inflation data and bullish sentiments from President Trump regarding the markets, alongside Coinbase’s new status in the S&P 500.

The Consumer Price Index (CPI) for April showed lower-than-expected inflation, easing concerns for the Federal Reserve about inflation caused by tariffs. Investors are anticipating Fed Chair Jerome Powell’s speech on Thursday for more policy insights.

The positive market stance was bolstered by Trump’s remarks at the Saudi-U.S. Investment Forum, indicating that the financial markets potential for growth is strong.

At the time of this article, Bitcoin was trading approximately 2.4% higher at around $104,400, while Ethereum’s ETH advanced 9% to $2,700. Many altcoins also saw substantial gains, with some tokens from decentralized finance protocols rising more than 20-30%.

Furthermore, stocks performed well with the Nasdaq and S&P 500 increasing by 1.6% and 0.75%, respectively. Coinbase’s shares soared by 24% following its S&P 500 inclusion, creating a potential $16 billion buying pressure for its shares, as forecasted by Jefferies.

Kruger notes that while the crypto market digests its recent gains, the sentiment appears favorable for further momentum. He emphasizes the importance of Coinbase’s listing as a significant marker for cryptocurrency’s mainstream acceptance.

Looking ahead, it is suggested that BTC may reach new highs, contingent on the ability to consolidate above the $100,000 mark amidst favorable trading conditions.