Risk assets rebound to boost the market, Bitcoin returns to the $100,000 mark

According to Zhitong Finance APP, on Thursday, Bitcoin returned to above $100,000, marking the first time it has broken this psychological barrier since February of this year. Analysts indicate that this reflects a resurgence in overall demand for risk assets among investors, while U.S. stocks continue to rebound from their April lows, significantly enhancing market risk appetite.

Thomas Perfumo, a global economist at the cryptocurrency exchange Kraken, pointed out: "Bitcoin's return to six figures coincides with a revival of global market risk sentiment. The stock market is performing strongly, and investors' willingness to allocate to risk assets is increasing, with this revival of 'animal spirits' quickly spreading to the cryptocurrency space."

On January 20 of this year, the day U.S. President Trump was inaugurated, Bitcoin reached an all-time high of $109,225. At that time, the market widely expected the new administration to bring a more lenient regulatory environment for crypto assets. However, subsequent tariff policies promoted by the Trump administration caused turbulence in the risk market, and Bitcoin briefly fell below $80,000 in early April.

On Thursday, after Trump announced that his administration had reached a preliminary trade agreement with the UK, both U.S. stocks and Bitcoin rose. José Torres, a senior economist at Interactive Brokers, stated: "Investors are finally seeing the light at the end of the 'Trump trade tunnel' and are now turning their attention to growth expectations within Trump's policy mix."

Bitcoin rose 5% on Thursday, reaching a high of $101,515, and traded around $101,094 in the afternoon. Meanwhile, the Dow Jones Industrial Average increased by 1.3%, with U.S. stocks performing strongly overall.

Despite Bitcoin demonstrating strong resilience amid recent market volatility, Leah Wald, CEO of SOL Strategies, cautioned that Bitcoin is still primarily traded as a high-beta risk asset. In an interview, she stated: "While Bitcoin has shown some relative strength compared to stocks during periods of macro uncertainty, it is still too early to say it has completely 'decoupled' from traditional markets. Bitcoin's structural characteristics still resemble a high-volatility risk asset, performing excellently during bullish sentiment, but lagging when the market de-risks."

Another positive factor driving Bitcoin's rise comes from Arizona and New Hampshire in the U.S. Earlier this week, the governors of these two states signed bills allowing for the establishment of state-level Bitcoin reserves. Although no actual Bitcoin purchases have been made yet, this has been enough to spark optimism among investors. Alexander Blume, CEO of cryptocurrency investment consulting firm Two Prime, stated: "This news has bolstered market confidence in the acceptance of crypto assets by the government."

From a technical perspective, Tyler Richey, co-editor and technical analyst at Sevens Report, pointed out that Bitcoin currently faces a key resistance range between $101,500 and $106,500If Bitcoin can close above $101,000 on Thursday, it is expected to challenge the historical high of $109,225 set in January again.

However, he also warned that if Bitcoin falls below the short-term support level of $93,780, it may pull back to the $80,000 level.

Despite the daily trend being relatively strong, Richey also stated that from a weekly time frame perspective, the technical outlook for Bitcoin is not so encouraging. Its momentum indicator, the Relative Strength Index (RSI), although still above the neutral line of 50, is far below last December's peak of nearly 80, which was when the momentum drove Bitcoin's surge in January