Bitcoin is nearing its all-time high, trading above $106,000, fueled by significant inflows into spot Bitcoin ETFs, netting $2.8 billion in May alone. This surge brings total ETF assets to over $122 billion. Economic factors, including concerns over inflation—prompted by Walmart's price hikes related to tariffs—are also driving investor interest in Bitcoin. Recent market dynamics show Bitcoin climbing approximately 25% over the past month and just 3% shy of its peak of $108,786 set in January. Analysts predict further potential for growth, particularly with Coinbase's S&P 500 inclusion, which typically boosts asset allocation. Meanwhile, while Bitcoin’s market dominance is decreasing, the ongoing macroeconomic uncertainties suggest that investors may still prefer Bitcoin over altcoins during periods of volatility. This backdrop is influencing the cryptocurrency's appeal as a potential hedge against inflation amidst evolving trade policies and macroeconomic signals that favor risk assets.

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