Bitcoin has once again surged to a new all-time high, reaching $105,000—or approximately 1.7 billion rupiah—propelled by a wave of positive sentiment in global markets.

The recent rally in Bitcoin’s price has been largely fuelled by increased institutional interest, signs of easing geopolitical tensions, and encouraging economic data from the United States, particularly relating to inflation.

According to the latest figures from the US Bureau of Labor Statistics (BLS), the Consumer Price Index (CPI) for April 2025 rose by 2.3% year-on-year, slightly down from 2.4% recorded in March. This marks the slowest rate of inflation since February 2021 and has prompted speculation that the US Federal Reserve could soon pause its cycle of interest rate hikes.

Beyond inflation, a significant contributor to Bitcoin’s rise has been the growing presence of institutional players in the cryptocurrency market. Financial and investment firms now account for nearly 36% of all corporate Bitcoin purchases, while technology companies and consulting firms contribute 16.8% and 16.5% respectively.

One of the most notable purchases this year came from Strategy (MSTR), which acquired 13,390 BTC, valued at around $1.34 billion.

Oscar Darmawan, CEO of Indodax, commented that the easing of US inflation has had a positive impact on the crypto market. He also pointed out that the increasing level of institutional investment reflects a rising confidence in Bitcoin as both a hedge and a long-term asset.

“This is a strong signal for the entire cryptocurrency ecosystem, including in Indonesia. As more institutions get involved, Bitcoin becomes more stable and adoption within traditional financial markets grows,” he explained.

Oscar further emphasised that Bitcoin’s price surge cannot be solely attributed to speculation. The move towards $105,000 suggests that the market’s foundations are becoming more robust, with sustained demand from institutions viewing Bitcoin as a strategic tool for portfolio diversification and wealth preservation.

Another factor boosting Bitcoin’s rally is the easing of global trade tensions, particularly following a tariff agreement between the US and China. This development has helped soothe fears of a global economic slowdown.

“The tariff war that escalated at the beginning of 2025 has now calmed significantly. This has created a sense of security among investors, including in the crypto space, which in turn has strengthened interest in Bitcoin,” said Oscar.

He also highlighted the role of clearer and more supportive regulatory frameworks emerging in various countries, which have bolstered confidence among market participants.