Bitcoin has surged past the $105,000 mark, driven by a convergence of institutional investment, macroeconomic signals, and evolving market dynamics. This significant milestone reflects the growing confidence in digital assets amidst shifting economic landscapes. 2025 saw institutional investors particularly impactful, with BlackRock’s iShares Bitcoin Trust (IBIT) attracting substantial assets under management, with a massive single-day inflow of $970 million in May alone. However, recent data reveals a shift, with U.S.-based spot Bitcoin ETFs recording net outflows after six consecutive weeks of inflows, led by BlackRock’s IBIT with investor withdrawals exceeding $430.82 million over the week. 2025 has also seen a potential rate cut by the Federal Reserve, which has bolstered investor sentiment for risk assets like cryptocurrencies due to lower interest rates leading to increased market liquidity. 2025 also brings neutral Fed rhetoric and softening comments that have created favorable conditions for further cryptocurrency growth. Analysts anticipate continued gains but remain cautious with short-term volatility, while some forecast long-term targets near $180,000 – $250,000 by year-end. Global economic factors like rising global liquidity and geopolitical developments are also shaping Bitcoin’s trajectory. In conclusion, while the current momentum is promising, investors should remain vigilant about potential regulatory changes, market volatility, and macroeconomic shifts.