Bitcoin Inches Closer to All-Time High—Here's What's Driving Its Price
Bitcoin is trading near record levels, surpassing $105,700 and currently above $106,500, driven by renewed interest in exchange-traded funds (ETFs) and shifting economic signals. This rally is characterized by significant inflows into spot Bitcoin ETFs, with over $2.8 billion in net inflows in early May and cumulative inflows reaching $41.77 billion by May 16. The Federal Reserve has maintained its interest rate at 4.25% to 4.50%, signaling a cautious approach amid mixed economic data and ongoing inflation concerns. A temporary tariff reduction between the U.S. and China has provided some relief, but elevated tariffs on key sectors remain. Walmart plans to raise prices due to tariff impacts, contributing to inflationary pressures that could influence monetary policy and investor sentiment towards risk assets, including cryptocurrencies.
