Bitcoin’s Powerful Surge: Gains Hold Strong Amid ETF Flows, Coinbase Premium & Trump Tariff Relief

Bitcoin’s week kicked off with impressive momentum, soaring to a daily peak of $88,804. This bullish move has ignited excitement among analysts who are eyeing the $90,000 to $92,000 range as the next critical level for Bitcoin to conquer. What’s fueling this renewed Bitcoin Price strength? Let’s dive into the key factors driving Bitcoin’s upward trajectory.

Why is Bitcoin Holding Strong? Decoding the Market Drivers

Several factors are converging to support Bitcoin’s current price stability and upward momentum. These can be broadly categorized into structural and narrative elements, creating a powerful synergy in the market. Let’s break down these key drivers:

• Trump’s Tariff Toning Down: A significant boost came from unexpected news regarding US trade policy. President Trump hinted at a potentially softer approach to tariffs, specifically mentioning the removal of cars and microchips from the upcoming “tariff number” announcement. This news injected optimism into the broader market, and Bitcoin, often seen as a risk-on asset, responded positively. According to Ben Yorke from WOO, this shift suggests a White House cautious of economic repercussions from aggressive tariffs.
• Positive Market Response Reflected in Futures: The market’s favorable reaction to the Trump Tariffs news is evident in the surge of Bitcoin futures open interest. This increase implies that traders are leveraging up, opening new long positions, signaling bullish sentiment and confidence in further price appreciation.
• The Return of the Coinbase Premium: The Coinbase Premium, which measures the price difference between Coinbase Pro and Binance, has resurfaced. This positive premium indicates buying pressure on Coinbase, a platform favored by US institutional investors. Its return suggests renewed spot demand from American investors, a crucial element for sustainable price growth.
• Consistent Bitcoin ETF Inflows: For seven consecutive days, spot Bitcoin ETF products in the US have experienced net inflows. Data from SoSoValue reveals a substantial $84.17 million net inflow into these ETFs. This consistent positive flow is a strong indicator of institutional and mainstream investor appetite for Bitcoin exposure through regulated investment vehicles.

Bitcoin ETF Net Flows: A Bullish Signal?

The sustained positive net flows into spot Bitcoin ETF products are particularly noteworthy. These ETFs provide a regulated and accessible avenue for institutional and retail investors to gain exposure to Bitcoin without directly holding the cryptocurrency. The consistent inflows suggest growing confidence in Bitcoin’s long-term prospects and increasing adoption by mainstream financial players. This structural shift in market access is a fundamental factor supporting Bitcoin’s price.

Coinbase Premium: Spot Demand Indicator

The resurgence of the Coinbase Premium is another encouraging sign. Historically, a positive Coinbase Premium has often been associated with strong spot buying pressure from US investors, particularly institutions. When Coinbase prices trade at a premium compared to exchanges like Binance, it suggests that US-based buyers are actively accumulating Bitcoin. This renewed premium hints at a potential shift from derivative-driven price action to more organic, spot-driven demand, which is generally considered healthier for the market.

Can Bitcoin Price Hit $100K? Analyzing the Momentum

While the return of the Coinbase premium and the positive Bitcoin ETF net flows are undoubtedly bullish signals, the question remains: Is this momentum strong enough to propel Bitcoin back to the coveted $100,000 mark? Market analysts are cautiously optimistic, highlighting the confluence of structural and narrative factors.

Lingling Jiang from DWF Labs points to an “alignment of both structural and narrative factors” driving Bitcoin’s upward movement. She elaborates on the micro-level patterns, including:

• Resurgence of ETF Inflows: As discussed, continuous inflows into spot Bitcoin ETFs are a powerful structural support.
• Expanding Stablecoin Market: A growing stablecoin market provides readily available capital that can flow into cryptocurrencies, including Bitcoin.
• Altcoin Breakouts: Positive price action in alternative cryptocurrencies often reflects broader market confidence and can spill over into Bitcoin.
• Strengthening Liquidity, Subdued Volatility: Increased market liquidity coupled with relatively low volatility can create a more stable and attractive environment for institutional investors.
• Long-Term Accumulation: On-chain metrics indicating long-term investors accumulating rather than selling suggest strong conviction in Bitcoin’s future potential.

Technical Outlook: Navigating Resistance Levels

From a technical analysis perspective, Bitcoin still faces some hurdles. It’s currently trading below the range that defined its price action from late 2024 to early 2025. While Bitcoin is holding above its 20-day and 200-day moving averages, it’s encountering resistance at a descending trendline, which coincides with the 50-day moving average around the $89,500 – $90,000 zone. This area represents a significant resistance level that needs to be decisively broken for further upward momentum.

However, market analyst Scott Melker highlights a bullish trend in Bitcoin’s 4-hour Relative Strength Index (RSI), showing “higher lows and higher highs.” He also noted an oversold RSI with bullish divergence on the daily chart, further supporting the potential for continued upward movement.

Conclusion: A Renewed Bullish Chapter for Bitcoin?

Bitcoin is exhibiting powerful signs of renewed strength, supported by a confluence of factors ranging from positive Bitcoin ETF flows and the return of the Coinbase Premium to a potentially less hawkish stance on Trump Tariffs. While technical resistance remains in the $90,000 – $92,000 zone, the underlying market sentiment appears to be improving. Whether this momentum can carry Bitcoin back to $100,000 remains to be seen, but the current indicators suggest a strengthening bullish narrative. As always, remember that cryptocurrency investments carry risk, and thorough research is crucial before making any decisions.

Disclaimer: This article is for informational purposes only and should not be considered investment advice.