Bitcoin on Thursday, May 8, 2025, once again crossed the psychologically significant threshold of $100,000 for the first time since February this year. This rally comes at a time when Bitcoin’s dominance in the cryptocurrency market has risen above 60%, reflecting growing investor optimism and potentially a new era for Bitcoin’s position as a recognized store of value.
Why Bitcoin Is Rising Now?
Bitcoin’s latest breakthrough above the $100,000 mark comes thanks to a combination of several key factors:
Trade Deals as the Main Catalyst
Donald Trump announced on his Truth Social network the conclusion of a “full and comprehensive” agreement with the United Kingdom, adding that “many other deals, which are in serious stages of negotiation, will follow.” Details of the US-UK agreement are expected to be revealed at a press conference. This news significantly contributed to market optimism.
Growing hopes that the United States will start signing trade deals with other countries likely reassures investors about the state of the global economy and the economic uncertainty that Trump’s tariffs have created.
Institutional Adoption and Capital Inflow
- Spot Bitcoin ETFs recorded an inflow of $1.8 billion in the past trading week
- Falling bond yields and a weakening dollar supported the rally
- Coinbase announced the acquisition of Deribit, the largest platform for trading Bitcoin and Ethereum options, for $2.9 billion
Legislative Breakthroughs in State Adoption
- New Hampshire became the first state to pass a strategic Bitcoin reserve bill
- Arizona approved a law allowing the state to retain unclaimed digital assets
- The Senate is scheduled to vote on stablecoin legislation today (the GENIUS Act)
Historical Context and Price Development
Bitcoin reached an all-time high of over $109,114 in late January 2025, just before President Trump’s inauguration. It first crossed the $100,000 threshold in December 2024, shortly after Trump announced the appointment of Paul Atkins, who is crypto-friendly, as the new Chairman of the Securities and Exchange Commission (SEC).
Unlike previous breakthroughs of the $100,000 mark, the new price spike comes at a time when:
- Bitcoin’s market dominance has risen above 60% (compared to 52% in December 2024 and 54% in January 2025)
- The Fear and Greed Index is consolidating in the “green” area with a current score of 65
- Bitcoin seems more resilient to geopolitical events in Asia and the Middle East
Performance of Other Cryptocurrencies
Bitcoin is not the only cryptocurrency benefiting from optimism about trade deals. Other significant cryptocurrencies have also seen growth:
- Ethereum: rose by nearly 8% in the last 24 hours to approximately $1,970
- XRP: increased by 3.1%
- Solana: grew by 4.2%
Meme coins are performing similarly:
- Dogecoin: up by 5.8%
- Shiba Inu: increased by 4.7%
Future Outlook
According to Ben Caselin, Chief Marketing Officer at VALR, there is a “good chance” that Bitcoin will chart new highs above $110,000 in the foreseeable future as the asset seeks to consolidate its value above $100,000.
Retail investors are expected to enter the market later as part of Bitcoin’s traditional four-year cycle, which could lead to a macro top in the 4th quarter of this year.
Upcoming US economic data will be key in determining Bitcoin’s direction in the short term:
- US budget data (May 12)
- Consumer Price Index (CPI) (May 13)
Vincent Liu, Chief Investment Officer at Kronos Research, notes: “While momentum is strong, upcoming US economic data will be key in determining if BTC can break and hold above this level. For the rally to sustain, the trade deal narrative will need to evolve into concrete progress.”
Given continued progress in global crypto regulation and multiple strategic Bitcoin reserve initiatives, there is also a chance of “prolonged and accelerated growth beyond 2025.”
