Bitcoin Is Back Above $106K After 5% Gains: What’s Driving the Surge?

Bitcoin jumped 5% in the past 24 hours, breaking through key technical levels as a wave of institutional momentum and risk-on sentiment lifts the crypto market.

The rally follows two major developments: Texas‘s historic $10 million BTC reserve—the first publicly funded state-level Bitcoin allocation—and ProCap’s $1 billion BTC acquisition strategy, modeled after MicroStrategys approach and fueled by a planned Nasdaq SPAC merger.

These moves reflect growing political and corporate validation of Bitcoin as a treasury asset. Texas‘s action signals state-level conviction, while ProCap’s plan highlights continued adoption in U.S. capital markets.

Meanwhile, the 14-day Relative Strength Index (RSI) sits at 51.99, indicating neutral momentum. This leaves room for further upside without immediate overbought pressure.

Sentiment Rebounds, Liquidity Concentrates in BTC

Market psychology is also shifting. The Crypto Fear & Greed Index from CoinMarketCap jumped from 37 (Fear) to 47 (Neutral) within 24 hours, driven in part by easing global tensions after positive U.S.-China trade discussions.

Additionally, Bitcoin dominance remains steady at 64.35%, suggesting capital is staying within BTC rather than rotating into altcoins—reinforcing the narrative of Bitcoin as the primary liquidity magnet during periods of institutional activity.