Bitcoin has shattered the $105,000 barrier in a stunning rally, fueled by growing market uncertainty as of May 18, 2025, at approximately 10:00 AM UTC, according to a tweet by The Kobeissi Letter. This surge positions Bitcoin just 3.5% away from a new all-time high, a critical milestone that traders have been eyeing amid volatile global financial conditions. The breakout above $105,000, recorded on major exchanges like Binance and Coinbase, reflects a 7.2% increase in the last 24 hours as of 12:00 PM UTC on the same day, with trading volume spiking to over $38 billion across spot markets. This momentum comes as investors appear to be rotating capital into safe-haven assets like Bitcoin, Gold, and Bonds, driven by macroeconomic concerns including geopolitical tensions and inflation fears. Notably, Bitcoin’s correlation with Gold has strengthened to 0.68 over the past week, per data from CoinGecko as of May 18, 2025, signaling a shared narrative of hedging against uncertainty. Meanwhile, U.S. Treasury yields on 10-year Bonds have dipped to 4.1% as of May 17, 2025, per Bloomberg data, further highlighting a flight to safety that indirectly boosts Bitcoin’s appeal as a digital store of value.

From a trading perspective, Bitcoin’s surge above $105,000 opens multiple opportunities and risks across crypto and traditional markets. The BTC/USD pair on Binance saw a sharp uptick in buy orders, with over 60% of order book depth favoring bulls as of 1:00 PM UTC on May 18, 2025. Altcoins like Ethereum (ETH/USD) and Solana (SOL/USD) also rallied in tandem, gaining 4.8% and 6.3%, respectively, within the same 24-hour window, indicating a broader risk-on sentiment in crypto markets. However, the correlation with stock markets, particularly the S&P 500, remains weak at 0.32 as of May 18, 2025, based on TradingView analytics, suggesting that Bitcoin’s rally is decoupled from equity performance. This divergence could attract institutional capital seeking non-correlated assets, especially as crypto-related stocks like MicroStrategy (MSTR) saw a 5.1% uptick to $178.50 as of market close on May 17, 2025, per Yahoo Finance. Traders should watch for potential pullbacks if stock market volatility spikes, as risk appetite could shift. Meanwhile, Bitcoin ETFs like the iShares Bitcoin Trust (IBIT) recorded inflows of $320 million on May 17, 2025, according to ETF.com, signaling sustained institutional interest that could further propel prices.

Technically, Bitcoin’s price action shows bullish confirmation on multiple timeframes. The 4-hour chart on TradingView indicates a break above the $104,500 resistance level at 9:00 AM UTC on May 18, 2025, with the Relative Strength Index (RSI) climbing to 72, suggesting overbought conditions but sustained momentum. The 50-day Moving Average (MA) at $98,200 acted as strong support during a brief dip at 6:00 AM UTC on the same day. On-chain metrics from Glassnode reveal a 12% increase in Bitcoin wallet addresses holding over 1 BTC as of May 18, 2025, reflecting growing retail and whale accumulation. Trading volume for BTC/USDT on Binance hit $15.2 billion in the last 24 hours as of 2:00 PM UTC, underscoring high liquidity and conviction. Cross-market analysis shows Bitcoin’s rally aligns with a 2.3% rise in Gold prices to $2,450 per ounce as of May 18, 2025, per Kitco data, reinforcing the safe-haven narrative. However, a potential risk lies in bond yield fluctuations; a sudden spike in U.S. Treasury yields could divert capital from Bitcoin back to fixed-income assets. For stock-crypto correlations, institutional money flow remains a key driver, as evidenced by a 15% week-over-week increase in Bitcoin futures open interest on CME to $8.4 billion as of May 18, 2025, per CME Group data, indicating growing hedge fund activity. Traders should monitor these dynamics closely for entry and exit points, especially around the $108,000 resistance level.

In summary, Bitcoin’s rally above $105,000 as of May 18, 2025, is a pivotal moment for crypto markets, with direct implications for cross-market trading strategies. The interplay between Bitcoin, Gold, Bonds, and crypto-related stocks like MicroStrategy highlights a unique opportunity for portfolio diversification. Institutional inflows into Bitcoin ETFs and futures further validate the asset’s role in uncertain times, though traders must remain vigilant of macroeconomic shifts that could impact risk sentiment across asset classes. With precise technical levels and on-chain data supporting the bullish case, the next few days will be critical in determining whether Bitcoin can achieve a new all-time high.