Bitcoin Hits $97K on Trade Hopes and Massive Corporate Buying

Bitcoin price is back in the headlines as investors get more optimistic about a short-term breakout, driven by macro-political optimism and institutional activity. While traders are waiting for a trade deal breakthrough in U.S.-China, inflows from Bitcoin ETFs and Strategy’s aggressive accumulation are fueling the rally.

Despite doubts about when a trade deal will happen, market participants are positioning for a possible move past $100,000, a psychological barrier that now seems more achievable.

Institutional Demand Heats Up with Strategy’s $21 Billion BTC Play

One of the biggest drivers of the recent bullishness is institutional buying. Strategy,  the company formerly known as MicroStrategy,  just announced plans to raise $21 billion to buy more Bitcoin. This, from Executive Chairman Michael Saylor, has reaffirmed the company’s commitment to Bitcoin as a long-term treasury reserve.

According to a May 1 report by CoinDesk, Strategy already holds over 553,555 BTC and is expanding its approach with what Saylor calls “institutional-grade tools” for evaluating digital assets. Presto Research notes that this means corporate investors are getting more sophisticated and it’s a sign of broader institutional confidence.

U.S.-China Trade Developments Calm Market Fears, for Now

The Bitcoin price is also up as trade tensions between U.S. and China ease. Chinese state media just reported that the U.S. has reached out to resume talks on tariffs. While this doesn’t mean a deal is done, it’s calmed short-term fears.

Still, traders are cautious. Betting data from Polymarket shows only a 20% probability that a formal trade agreement will be reached before June. The skepticism is due to the Biden administration’s previous hawkish stance which included tariffs that rattled risk markets, Bitcoin included.

“Tariff escalation earlier this year triggered a selloff across crypto markets,” said Flowdesk in a recent note. “But now that there’s a shift in tone, we’re seeing risk appetite return across BTC and major alts.”

Altcoins and AI Tokens See Action

While Bitcoin is in the spotlight, altcoin momentum has been building in the background. According to CoinDesk’s CD20 Index, broad-based altcoin activity rose 2.2% with Dogecoin up 4% and Cardano (ADA), Ethereum (ETH), XRP, and BNB up 1–3%.

AI tokens are also seeing action, led by Kava Labs’ announcement that its decentralized AI platform has surpassed 100,000 users. This has caught the attention of crypto traders and investors looking for utility beyond price speculation.

“Kava AI is seeing demand from both core Web3 communities and newcomers who are frustrated with centralized AI models,” said Scott Stuart, co-founder of Kava Labs, in a statement to CoinDesk. “We prioritize verifiability and privacy, and that’s what’s resonating globally.”

CoinGecko data shows the AI token segment is up 3% on average, while the CD20 is up 1.8%.

Market Structure: $100K BTC

Flowdesk’s market research notes weekend volume is increasing, spot flows are strong and altcoin depth is healthy. According to their latest update the market structure is bullish.

“As BTC is above $90K we’re seeing more speculative activity, strong liquidity and growing appetite in derivatives,” the firm wrote. “$1.5B in ETF inflows over the last few days means institutional demand is still there.”

With Strategy’s aggressive buying plan and a good political backdrop this puts the much anticipated $100,000 BTC back in focus for traders.

Conclusion: Bullish with a Cautious Undercurrent

With Bitcoin price around $97,000 and institutional buying and trade diplomacy in play the outlook for BTC is bullish, but with a political uncertainty and market skepticism. A $100K breakout may not be immediate but the foundations for a near term push are building.

AI token strength and altcoin participation makes for a risk on environment especially as decentralized platforms like Kava gain mainstream traction. For now, all eyes are on how quickly geopolitics and institutional flows can align to get Bitcoin to the next big number.

FAQs

Why is Bitcoin price around $97,000 now?

Bitcoin price is around $97K due to ETF inflows, Strategy’s $21B investment and easing of US-China trade tensions.

Will Bitcoin price reach $100,000 soon?

Analysts think $100K is in range given the liquidity and market structure but timing depends on geopolitical progress and ETF momentum.

What is Strategy doing in this rally?

Strategy is raising $21B for Bitcoin accumulation, long term corporate interest and investor sentiment.

Why are AI tokens going up with Bitcoin?

AI tokens especially Kava’s decentralized AI platform are gaining traction as users are looking for alternatives to centralized models, prices are going up.

Glossary

Bitcoin (BTC): Decentralized ‘digital currency with no central authority or bank.

ETF (Exchange-Traded Fund): Type ‘of security that tracks an index, commodity or asset and is traded like a stock.

Altcoin: Any cryptocurrency not Bitcoin.

Polymarket: Decentralized prediction market platform where users can ‘bet on future events using blockchain assets.

Kava Labs: Decentralized finance platform building ‘interoperable blockchain applications including AI integrated solutions.

Institutional Buying: Large financial entities buying (hedge funds, corporations, asset managers).

Tariff: Tax imposed by government on imported or exported goods, often used in trade negotiations.

Sources

CoinDesk

CoinDesk

Investing.com

CoinMarketcap

 

Disclaimer: This article is for’ information purposes only and not financial advice. Cryptocurrency investments are high risk. Always do your own research or consult a financial advisor before making ‘investment decisions.

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