Bitcoin Price Analysis: BTC Returns To $90,000, Can It Reclaim $100,000?

Bitcoin (BTC) registered a drop during the ongoing session as its latest rally took a breather after coming across resistance around $95,000. The flagship cryptocurrency lost momentum after reaching an intraday high of $94,662 as selling pressure at upper levels overwhelmed buyers. 

BTC is down over 2% during the ongoing session, trading at $92,657 after recovering from a low of $91,678. 

Spot Bitcoin ETFs Register Substantial Inflows 

Spot Bitcoin ETFs registered substantial inflows totaling $936 million on Tuesday, the largest single-day increase since January 17. The surge comes amid growing interest among institutional investors in Bitcoin as a hedge against economic and geopolitical uncertainties. The inflows were distributed across 10 US ETFs, including Ark & 21Shares ($267.1 million), Fidelity’s FBTC ($253.8 million), and BlackRock’s IBIT ($193.5 million). The past three days have witnessed net inflows surpassing $1.4 billion. 

Analysts believe the surging interest in Bitcoin is driven by several macroeconomic factors including persistent inflation and a weakening US Dollar. According to Rachel Lucas, crypto analyst at BTC Markets, the ETF inflows indicate a structural shift in which institutional capital is returning to crypto and Bitcoin. 

Bitcoin Becomes World’s Fifth-Largest Asset By Market Cap 

Bitcoin has surpassed market behemoths, including Google, Amazon, and Meta, to become the world’s fifth-largest asset by market capitalization, according to data from CoinMarketCap. On Wednesday BTC’s valuation reached $1.86 trillion, crossing the market caps of Silver and Alphabet, Google’s parent company. This places the asset behind only Gold, Apple, Microsoft, and Nvidia in the global rankings of the most valuable assets. 

BTC’s latest milestone comes after a rocky few weeks that saw the asset’s price plunge below $80,000 and fall to a low of around $76,000 thanks to growing economic uncertainties and geopolitical tensions. However, it rebounded strongly to reclaim $90,000, reaching a high of $94,662 this week before declining to current levels. BTC’s recovery and rise in global rankings marks a significant shift in its perception in the global financial system. Once dismissed as a volatile asset, Bitcoin has carved a niche as a mainstream asset class and a hedge against inflation and economic uncertainty. 

Bitcoin Mining Risks Paraguay’s Energy Grid Collapse 

The Paraguayan Industrial Union (UIP) has warned that the country’s power grid could collapse as early as 2029 if demand rises due to Bitcoin mining activities. Paraguay has seen an influx of crypto mining companies looking to take advantage of its cheap hydroelectricity. Julio Fernandez, the Head of the Center of Economic Studies of the UIP warned demand has grown substantially over the past few years. 

“Itaipu and Yacyreta are no longer enough. We’re consuming more than one Itaipu turbine per year.”

The country’s electricity is almost entirely generated by the Itaipu dam, which produced 83.879 TWh in 2023. The dam was constructed at the border of Paraguay and Brazil and operated by the two countries. Brazil also purchases electricity generated by the dam. Despite the significant power source UIP fears a breaking point could come sooner than expected. 

“We’re very short on time. If we don’t act now, a blackout is coming.”

One proposal to avoid such a collapse is to use Argentina’s natural gas export deal with Brazil to provide passage and build power infrastructure designed to take advantage of this power source. According to Fernandez, the country could generate $400 million annually from tolls alone. 

“Paraguay could earn $400 million annually from tolls alone. A thermoelectric plant would also supply the country and sell surpluses to Brazil.”

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) surged past $90,000 this week as it broke out of its trading range to take key levels. The flagship cryptocurrency surged past $87,000 on Monday and claimed $90,000 on Tuesday, surging past $93,000. However, it fell short of crossing $95,000 as sellers overwhelmed buyers at upper levels, leading to a decline during the ongoing session. Analysts believe BTC rallied due to various shifting geopolitical signals and macroeconomic dynamics that have impacted investor sentiment. President Donald Trump’s toned-down rhetoric against China, and clarity on Federal Reserve Chair Jerome Powell’s tenure, along with a weakening Dollar, have created a favorable environment for risk assets like Bitcoin. 

“This rally isn’t retail-driven hype—it’s institutional capital positioning ahead of what many see as a new monetary and political regime.”

The analyst also noted that Bitcoin’s 7-day correlation to the S&P 500 and Nasdaq had gone negative, indicating the asset is no longer treated as a tech proxy but has evolved into a hybrid macro asset. Meanwhile, over $500 million in crypto short positions were liquidated due to BTC’s rally. 

“Short term, the next resistance sits around $95K, which could act as a brief pause point given the pace of this rally. Beyond that, the key psychological level remains $100K.”

The analyst also noted that the crypto market crossed $3 trillion during the rally, matching levels last seen during the 2020-2021 cycle. The analyst predicted more upside for BTC, stating the asset could double by the end of the year. 

“Bitcoin could potentially double by the end of the year, following global liquidity dynamics as it has in past cycles and reaching a high of $200K.”

BTC registered a substantial decline on Tuesday, dropping from a day high of $86,533 to $83,703. The price recovered on Wednesday, registering a marginal increase. BTC continued to push higher on Thursday, crossing the 50-day SMA and settling at $84,596. Despite the positive sentiment, BTC was back in the red on Friday, registering a marginal decline and settling at $84,518. Price action turned bullish over the weekend as BTC rose 0.61% on Saturday to reclaim $85,000 and settle at $85,033. Buyers retained control on Sunday as the price registered a marginal increase to end the weekend at $85,240.

Source: TradingView

Bullish sentiment intensified on Monday as BTC surged past $87,000 to settle at $87,497. BTC continued to push higher on Tuesday, surging almost 7% to cross $90,000 and settle at $93,380. With sellers active at higher levels, BTC experienced volatility on Wednesday. However, it registered a marginal increase and moved to $93,744. BTC lost momentum thanks to sellers being active at higher levels. As a result, the price is down almost 2% during the ongoing session. Sellers will look to retain control and drive the price below $90,000. However, if buyers regain control, BTC could make another attempt to cross $95,000 and push towards $100,000.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.