Bitcoin Surges Past $93,000 as Altcoins Rally: 5 Drivers Behind the Crypto Boom

On Thursday, Bitcoin exceeded the $93,000 level, advancing over 6.5% in one day, while major altcoins surged as much as 15%. This increase occurred alongside an impressive turnaround in US policy. President Trump now seems to be in favor of the digital currency. He has proposed some relaxing measures that, if implemented, would take a lot of the regulatory weight off cryptocurrencies. In addition, we've just seen the SEC appoint a new chairman: Paul Atkins. Atkins certainly has some Bitcoin-like confidence to him, he's headed to the SEC with plans to lighten up on some regulatory aspects that have made digital assets seem above-average risky.

The Trump administration's decision to disband the crypto enforcement unit at the Justice Department has given a shot in the arm to the positive momentum in the crypto market. The threat of clampdowns by regulators seems to be fading, and that can only push prices higher, as investors become more acceptable of the idea of taking on risk.

Institutional Inflows and ETF Momentum

One essential metric driving this surge is the heightened institutional involvement. Direct investment vehicles like crypto ETFs have enjoyed strong capital inflows, which seem to denote an increase in direct interest and confidence in the asset class from not just retail investors, but also from large fund managers who are allocating portions of their portfolios to cryptocurrencies.

Over the same span, actual trading volumes have ramped up too, particularly for Bitcoin, which saw tracked trading volumes of over $56 billion in just the past 24 hours alone. That's a 50% rise from the last recorded period, according to figures from Coinmarketcap.

The whole digital asset market saw an increase of almost 7%, which pushed the overall market cap of digital assets to an impressive INR 2.94 trillion. The volume transacted within the digital asset market hit an astounding INR 133.5 billion, this was almost 10% more than the volume from the prior week and a clear indicator of the broad market participation we are seeing in the digital asset space. Among the many standout digital assets, Ethereum impressed greatly with a nearly 15% surge pushing the price of Ethereum to up near INR 1,816.52.

Macro Tailwinds Drive Bullish Sentiment

A depreciating US dollar has rendered crypto even more enticing as a substitute value store. Treasury Secretary Scott Bessent's recent comments on where the trade conflict might be headed have also worked to lift investor sentiment. Bessent sees the trade tensions with China resolving as a big plus for market stability, and we know how that kind of stability has historically paved the way for things like cryptocurrencies.

Another promising indicator has been the drop in inflows to Bitcoin exchanges, which points toward diminished selling pressure. Analysts think that this trend will keep going, with Bitcoin looking to make a run at $100,000 if the bulls stay in charge.