Bitcoin Eyes $110K Milestone Amid Market Rally and Institutional Adoption

Bitcoin (BTC) surged nearly 3% on Wednesday, rebounding from Tuesday's low of $105,328 to reclaim the $108,000 level before settling at $108,845. The cryptocurrency extended gains to $109,672 as bullish sentiment strengthened following former President Trump's announcement of a revised US-Vietnam trade agreement reducing tariffs from 46% to 20%.

Market dynamics reveal tightening supply conditions, with Glassnode data showing BTC exchange reserves falling below 15% - the lowest level since 2018. This supply squeeze coincides with increased institutional adoption, as evidenced by BlackRock's Bitcoin ETF (IBIT) now generating more annual fees ($187.2 million) than its flagship S&P 500 product (IVV) despite having just 12% of its AUM.

Technical indicators suggest bullish momentum, with BTC testing the $110,000 resistance level after Wednesday's 3% rally. The global M2 money supply reaching $55 trillion boosted market liquidity, while open interest surged $3.2 billion (10%) across derivatives exchanges. Analysts note that a weekly close above $109,000 could propel BTC into price discovery territory, with Rekt Capital highlighting this as a critical resistance breakthrough.

The market recovery follows a volatile period where BTC briefly dipped below $100,000 last weekend before regaining momentum. While Thursday saw slight profit-taking at $106,980, the asset has since rebounded to test higher levels, currently trading at $109,000 with 0.51% intraday gains.