Bitcoin Surges Past $104K Amid Market Optimism
Bitcoin is rallying again, crossing $104,000 this week and edging closer to its all-time high of $106,533 from December. The rebound comes on the back of easing trade tensions and cooling inflation, reviving investor confidence in risk assets.
Earlier in the week, Bitcoin topped $100,000 for the first time in nearly five months. With bullish sentiment building, analysts believe the cryptocurrency could hit $140,000 if macroeconomic conditions remain favorable.
Inflation Cools, Fueling Bitcoin’s Climb
Recent data from the Commerce Department has helped fuel the surge. The Consumer Price Index (CPI) rose 0.2% in April and just 2.3% year-over-year, below forecasts. Core CPI also came in soft, suggesting inflation is moving closer to the Federal Reserve’s 2% target.
This cooling inflation boosts the case for interest rate cuts in 2025. Lower rates typically favor assets like Bitcoin, which are sensitive to shifts in monetary policy. They also make non-yielding assets more attractive relative to cash and bonds.
Trade Truce Between U.S. and China Lifts Sentiment
Adding to the rally, the U.S. and China reached a temporary 90-day trade truce. Investors welcomed the move, hoping it signals broader cooperation and fewer economic shocks ahead.
Reduced tariff threats alleviate pressure on global markets. For Bitcoin, which often reacts sharply to macro news, the easing of trade tension provides further upside momentum.
Crypto Stocks Set to Gain from Bitcoin Rally
Investors looking to capitalize on Bitcoin’s momentum may consider stocks linked to the crypto space. Companies like Visa, NVIDIA, and PayPal are well-positioned to benefit from rising Bitcoin adoption and usage trends.
Each of these firms has seen recent earnings estimate upgrades, highlighting improving fundamentals alongside crypto tailwinds.
Visa Taps Solana Blockchain for Crypto Settlements
Visa Inc. (V) is pushing deeper into the digital asset space. It’s expanding stablecoin settlement support to the Solana blockchain. Partnerships with Worldpay and Nuvei are also enhancing global payment infrastructure.
Visa’s earnings are expected to grow 12.8% this year. With Bitcoin and digital payments gaining traction, Visa remains a key crypto-linked stock to watch.
NVIDIA’s Hardware Powers the Crypto Ecosystem
NVIDIA Corporation (NVDA) has been a top performer, driven by strong demand for GPUs. These chips are vital for data centers, AI workloads, and Bitcoin mining.
With earnings growth projected at 43.5% for the year, and rising demand in the digital economy, NVIDIA is a prime beneficiary of Bitcoin’s renewed momentum.
PayPal Enables Retail Bitcoin Transactions
PayPal Holdings (PYPL) lets users buy, sell, and hold Bitcoin and other cryptocurrencies. Through both PayPal and Venmo, customers can also use Bitcoin for everyday purchases.
The company expects 9% earnings growth this year. As more consumers use crypto in daily transactions, PayPal could see rising revenue from its digital wallet services.