Bitcoin has surged past the $105,000 mark, marking a significant milestone in its recent price trajectory. This surge has triggered a broader rally in the cryptocurrency market, adding over $250 billion to the total market capitalization in just five trading days. The rise in Bitcoin's price, which has increased by over 37% in less than a month, has been driven by a combination of factors including lower-than-expected U.S. inflation data, a dovish stance from the Federal Reserve, and renewed institutional interest.

The broader crypto market has also benefited from this surge, with Ethereum rising past $6,000, Solana reclaiming $200, and even meme coins like PEPE and DOGE seeing double-digit gains. Bitcoin's dominance in the market has climbed past 53%, its highest level in over three years, as capital continues to rotate into large-cap digital assets amid rising regulatory clarity in major markets.

Several macroeconomic and market catalysts have contributed to Bitcoin's recent price surge. The U.S. Consumer Price Index (CPI) for April came in at 3.3%, lower than expectations, which has renewed hopes of a Federal Reserve rate cut in the summer. Additionally, coinbase made its S&P 500 debut this week, marking the first time a crypto-native company has entered the index, adding institutional validation. BlackRock’s Bitcoin ETF saw daily inflows of over $400 million, pushing its total assets to $18 billion, trailing only Fidelity and Grayscale. These converging forces appear to have set the stage for Bitcoin’s current breakout and may continue to support price appreciation in the short to medium term.

While Bitcoin has grabbed the headlines, altcoins have also made significant gains. Ethereum, for instance, jumped 12% in 24 hours, breaking over important resistance at $6,000 as speculation around Ethereum ETFs intensifies. Meme currencies like PEPE and WIF also rose as much as 30% on whale accumulation and growing social sentiment. On-chain data shows wallets scooping up millions worth of PEPE, suggesting that institutional traders are starting to rotate into high-volatility plays after BTC’s run-up.

Looking ahead, analysts are monitoring the $110,000–$115,000 area as the next main obstacle. Bitcoin’s breach over $105K could pave the way for more upside, given the ongoing ETF inflows and favorable macro conditions. Particularly, if Ethereum ETFs become popular in the next weeks, the present increase could still have legs.