Bitcoin (BTC) Price: Reaches $103,862 Following Positive US Inflation Data

TLDR

• Bitcoin price reached near $104K, up 1.3% to $103,862.5
• Lower-than-expected US inflation data boosted Federal Reserve rate cut expectations
• US-China agreement includes temporary 90-day tariff reductions on both sides
• Bitcoin Bull Score Index jumped to 80, its highest reading in 2025
• Altcoins outperformed Bitcoin with Ethereum up 8.7% and Dogecoin surging 9.5%

The price of Bitcoin (BTC) continues to consolidate above the $100,000 mark, boosted by favorable economic conditions and improving investor sentiment. The world’s largest cryptocurrency rose 1.3% to $103,862.5 as of May 14, 2025, maintaining its position above the coveted six-figure threshold.

This price movement comes after Bitcoin experienced sharp gains last week when it first crossed the $100,000 level. The recent rally was fueled by optimism surrounding easing trade tensions, though the cryptocurrency had lost some momentum in recent days due to profit-taking activities.

A key driver behind the current uptrend is the softer-than-expected U.S. inflation data. The Consumer Price Index (CPI) figures released on Tuesday came in below market expectations, dropping to 2.3% year-over-year in April 2025. This represents the lowest inflation reading since February 2021, down from 2.4% in March and below consensus forecasts.

The cooling inflation has eased concerns about the potential inflationary effects of trade tariffs. This development has strengthened market expectations for potential interest rate cuts by the Federal Reserve later this year.

US-China Trade Agreement Boosts Market Confidence

Another major factor supporting Bitcoin’s price is the temporary trade truce between the United States and China. According to a joint statement released on Monday, both countries have agreed to roll back tariffs for a 90-day period. Under this agreement, the U.S. will reduce its tariff on Chinese goods from 145% to 30%, while China will lower its retaliatory tariff from 125% to 10%.

This cooling of trade tensions has helped calm fears of a global economic slowdown. The agreement has created what analysts describe as a “risk-on” environment, encouraging investors to move into higher-risk assets like cryptocurrencies.

The impact of these developments is reflected in the CBOE Volatility Index (VIX), which has dropped to its 30-year average of 20, down from a peak of 60 earlier in 2025. According to Bitcoin network economist Timothy Peterson, this decline in market volatility typically creates favorable conditions for Bitcoin price growth.

Market sentiment indicators have responded positively to these developments. The Bitcoin Bull Score Index has surged from 20 to 80, reaching its highest level in 2025. This dramatic increase reflects rising spot demand outpacing supply, a pattern similar to what was observed after the April 2024 halving event.

Similarly, the Bitcoin Fear & Greed Index has been climbing and currently sits at 53.3%, though it remains below the “overloaded” zone of 80% or higher.

Altcoins Outperform Bitcoin

While Bitcoin has shown steady gains, altcoins have registered even more impressive performance. Ethereum (ETH), the second-largest cryptocurrency by market cap, surged 8.7% to reach $2,667.30.

Other major cryptocurrencies also posted strong gains. XRP rose 3.6% to $2.5869, while Solana jumped 7%. Cardano advanced 4.8%, and Polygon added 6% to its value.

Meme tokens were not left behind in this rally. Dogecoin surged 9.5%, while the Trump-themed cryptocurrency $TRUMP rose 8.4%.

The overall market improvement comes as Israel-based trading platform eToro Group prepares for its Nasdaq debut. The company is set to raise approximately $620 million in an upsized U.S. initial public offering, pricing 11.92 million shares at $52 each, above the initial target range of $46 to $50. The shares are scheduled to begin trading on the Nasdaq Global Select Market on May 14, with the offering valuing the company at around $4.3 billion.

Analysts remain cautiously optimistic about Bitcoin’s prospects, with some models suggesting that the cryptocurrency could reach $135,000 within 100 days. This prediction is based on the current low VIX levels, which historically correlate with increased investor confidence in riskier assets like Bitcoin.

The latest Bitcoin price of $103,862.5 represents a consolidation above the $100,000 level, with the improved economic outlook and reduced market volatility providing support for further potential gains.

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