Bitcoin's potential for a breakout above $110,000 depends on three primary factors: increasing investor risk appetite, rising inflation, and possible S&P 500 rebalancing events. Recently, Bitcoin has experienced low volatility, trading within a narrow range for six days. This trend invites speculation about a possible price surge if these key factors come into play. Historical trends reflect that Bitcoin's price sometimes aligns with a strengthening dollar, suggesting that a weaker dollar alone may not account for potential price increases. Notably, as the Nasdaq 100 hits new highs, investors are looking toward riskier assets, with Bitcoin being a likely beneficiary. Additionally, inflationary pressures are resurging, as evidenced by the U.S. Personal Consumption Expenditures Price Index fluctuating around 2.3%, and tariffs are affecting consumer prices. Also noteworthy is a potential inclusion of MicroStrategy in the S&P 500, which could lead to significant capital flowing into Bitcoin. Combining these elements, a rise above $110,000 is feasible if equities, inflation, and selective rebalancing align favorably for Bitcoin's advancement.

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