Bitcoin Nears Record High as Regulation and Tariff Easing Boost Optimism

Bitcoin Climbs Toward $109K Following Trade Developments and ETF Inflows

Bitcoin is gaining ground once again, surging toward its previous record of $109,000 amid a series of bullish signals from macroeconomic and regulatory fronts. As of May 13, 2025, Bitcoin is trading around $104,000, lifted by renewed institutional interest and easing geopolitical tensions.

One of the key catalysts for this rally is the recent agreement between the U.S. and China to reduce select tariffs. This has not only improved global investor sentiment but also prompted increased risk appetite across digital asset markets. Technical analysts now suggest Bitcoin may have a clean path toward $150,000, citing strong momentum and expanding ETF inflows.

Ethereum is riding a similar wave, breaking above $2,500 after high-profile short liquidations and broader bullish sentiment across altcoins. According to Cointelegraph, Ethereum’s move higher has been driven by favorable liquidation flows and declining macroeconomic uncertainty.

Meanwhile, institutional demand continues to rise. Digital asset investment funds have recorded consistent inflows, pushing total managed assets to $169 billion—just shy of their all-time high. Whales are active too; for instance, a recent Ripple-linked whale transferred over $780 million in XRP, suggesting a repositioning by high-value holders.

SEC Pushes for Clarity as States Launch Crypto Reserve Funds

On the regulatory front, momentum is also building. U.S. SEC Chair Paul Atkins revealed new efforts to establish formal classifications for crypto tokens and potentially allow broker-dealers to trade crypto non-securities like Bitcoin and Ethereum through Alternative Trading Systems (ATS). This could pave the way for broader participation from Wall Street institutions and bring further legitimacy to decentralized assets. Read more on this update at Reuters.

In a parallel development, Arizona has become the second U.S. state, after New Hampshire, to establish a cryptocurrency reserve fund. The initiative is designed to manage unclaimed digital assets and incorporate them into state-managed finance. The reserve will reportedly hold a mix of Bitcoin and Ethereum, marking a new chapter in the intersection between digital currencies and public sector asset management.

Altcoins are also seeing pockets of momentum. Polygon’s zkEVM launch has accelerated DeFi adoption on its network, while Celestia (TIA) posted a 19% price jump over the past 10 days due to strong developer engagement and transparent governance.

Despite recent gains, analysts caution about near-term volatility. Bitcoin and Ethereum experienced a minor pullback last week—dropping 5.3% and 4.7% respectively—as part of the “Sell in May” seasonal trend. The overall crypto market cap has also dipped 0.37% in the past 24 hours, according to BeInCrypto, underscoring the importance of watching macroeconomic signals.

As markets digest these developments, all eyes remain on Bitcoin’s resistance at $109,000 and the policy signals coming from Washington and Wall Street.