Bitcoin is once again gathering momentum following the latest interest rate decision by the US Federal Reserve, pushing closer to the symbolic $100,000 mark. Although the Fed opted to keep rates unchanged, market expectations point to a gradual reduction in the key interest rate to around 3.6 percent by the end of 2025.

Lower interest rates tend to make higher-risk assets, such as cryptocurrencies, more appealing to investors. As a result, optimism is returning to the market. Since the end of March, Bitcoin ETFs have recorded inflows totalling approximately $4.4 billion, signalling renewed investor confidence.

Recent blockchain data from analytics platform Santiment reveals that particularly large investors have been significantly increasing their holdings. Wallets holding between 10 and 10,000 Bitcoins have collectively purchased over 80,000 coins in recent weeks. This accumulation represents a value of nearly $8 billion and underscores the ongoing bullish sentiment surrounding Bitcoin.

Despite some continued division among market analysts, optimistic forecasts are gaining volume once again. Sean Farrell, a manager at Fundstrat, believes Bitcoin could reach a new all-time high of $175,000 later this year. BitMEX co-founder Arthur Hayes is even more bullish, suggesting a possible surge to $200,000.

At present, Bitcoin is trading at $99,040. The current record high, set in January, stands at $109,115. Should the cryptocurrency succeed in breaking through the $100,000 barrier, many expect a rapid push toward retesting those historic levels.