Bitcoin is
making headlines again, soaring to $100,000 for the first time since February
2025, with a current price hovering around $99,500, up 2.6% daily and 3.5%
weekly, according to CoinGecko data. This meteoric rise is driven by a
confluence of global economic developments, institutional investment, and
market optimism. Let’s dive into the key factors propelling Bitcoin’s price
upward today, May 8, 2025.
On many
cryptocurrency exchanges, Bitcoin’s price came close to the psychological level
of $100,000 during Thursday’s session. However, it has yet to reach that
milestone on Binance, where the current intraday high stands at $99,888. As of
now, BTC is trading at around $99,500.
Nonetheless,
this marks the first time in three months—since February—that Bitcoin has
climbed into six-figure territory, rebounding more than 30% from the lows
recorded in April.
Bitcoin price today. Source: TradingView.com
Other
cryptocurrencies are also rising alongside Bitcoin. Ethereum (ETH) has gained
over 7% in the past 24 hours, testing the $2,000 mark, while Dogecoin (DOGE) is
up 6% and currently trading at $0.18.
Bitcoin’s
rally triggered a cascade of liquidations of leveraged short positions, with
nearly $300 million wiped from the market in the past 24 hours, according to
data from CoinGlass.com. Bitcoin accounted for over one-third of these
liquidations, totaling $116 million. Ethereum came in second with $87 million
in liquidated short positions.
Largest short liquidation since mid-April. Source: CoinGlass.com
Why Is Bitcoin Price Going
Up Today? 3 Main Reasons
US-China Trade Talks Spark
Risk-On Sentiment
A
significant catalyst for Bitcoin’s surge is the anticipation of de-escalating trade
tensions between the United States and China. U.S. Treasury Secretary Scott
Bessent is preparing for talks with China in Switzerland, signaling a potential
thaw in the trade war ignited by President Donald Trump’s “Liberation Day”
tariffs announced on April 2, 2025. These tariffs initially sent Bitcoin
tumbling 32% from its January high of $109,241 to below $75,000. However,
Bessent’s focus on “de-escalation” has reignited investor confidence, boosting
risk assets like Bitcoin.
Additionally,
Trump teased a “major trade deal” on Truth Social, widely speculated to involve
the UK. This news has further fueled a risk-on market tone, with eToro market
analyst Josh Gilbert noting, “Trade tensions appear to be easing, with Donald
Trump signaling a willingness to negotiate, and that’s helping lift sentiment
across risk assets, particularly Bitcoin ”.
Paul Howard, Wincent
“Overall, we are seeing a net positive shift in risk
assets, with Bitcoin advancing 2.7% over the past 24 hours. The market now
anticipates a potential follow-through later this year; whether in the form of
rate cuts or broader macroeconomic stimulus. This could serve as a further
catalyst for upward price momentum,” said Paul Howard, Director at Wincent.
Federal Reserve’s Steady
Rates Bolster Bitcoin
The Federal
Reserve’s decision to maintain interest rates at 4.25%–4.5% on May 7, 2025, has
also played a pivotal role. Despite pressure from Trump to slash borrowing
costs, Fed Chair Jerome Powell cited “heightened uncertainty” while emphasizing
the U.S. economy’s “solid position”.
This steady
policy has reassured markets, providing a stable backdrop for risk assets like
Bitcoin to thrive. Marco Lim of MaiCapital told Decrypt, “The potential for
Bitcoin to reach $120,000 is closely tied to the Federal Reserve’s interest
rate decisions,” highlighting expectations of future rate cuts boosting
liquidity and Bitcoin’s price.
Institutional Investment
and ETF Inflows Surge
Institutional
adoption continues to be a powerhouse behind Bitcoin’s rally. Spot Bitcoin
exchange -traded funds (ETFs) saw $142 million in inflows on Wednesday, May 7,
2025, reversing Tuesday’s $85 million outflows, with Ark Invest’s ARKB leading
at $54.7 million.
Bitcoin ETF inflows. Source: Farside.co.uk
These ETFs,
launched in early 2024, have attracted over $35 billion in net inflows this
year, underscoring Bitcoin’s growing appeal as a portfolio diversifier. Peter
Chung of Presto told Decrypt, “Global institutions now realize the need to
diversify away from USD assets, which would benefit both gold and Bitcoin.”
Notably,
major players like Abu Dhabi’s sovereign wealth fund and the Swiss National
Bank have increased their Bitcoin exposure through ETFs and companies like
MicroStrategy, which holds 555,450 BTC as of May 4, 2025.
Bitcoin as a Hedge Against
U.S. Asset Uncertainty
Bitcoin’s
resurgence also reflects a broader shift in investor sentiment amid doubts
about U.S. financial assets. Trump’s tariffs have raised concerns about
inflation and economic growth, prompting investors to seek alternatives to U.S.
stocks, Treasuries, and the dollar.
Reuters
reports that Bitcoin outperformed stock markets in 10 of 17 sessions since
April 2, 2025, climbing 33% from its April low. Unlike its historical
correlation with tech stocks, Bitcoin is now showing signs of decoupling, with
Block Scholes analysts noting it’s “not just the 501st company in the S&P
500”.
This shift
is reinforced by Bitcoin’s inverse correlation to the Treasury yield curve, the
strongest in over two years, and
its outperformance of gold’s 11% rise since April. Martin Leinweber of
MarketVector Indexes told Reuters, “The damage has been done in terms of trust
towards the U.S. and dollar assets,” positioning Bitcoin as a “neutral asset”
for diversification.
Technical Analysis
Suggests Short-Term Bitcoin Correction
According
to my technical analysis, the more than 30% rally over the past month may face
a healthy downward correction, especially after testing the psychological level
of $100,000. The Relative Strength Index (RSI) has been hovering near the
overbought zone since mid-April, increasing the likelihood of a price pullback
from current levels.
Where could
Bitcoin head next? My target would be the support zone I’ve repeatedly
mentioned in the past—between $90,000 and $92,000. This range marks the lows
formed from November 2024 through February of this year. A drop below that
level wouldn’t necessarily spell the end of the uptrend, as Bitcoin established
another significant support band between $78,400 and $74,300 from February to
April. I consider that area the final line of defense.
Only a
breakdown below those levels would prompt me to reassess the bullish outlook.
Bitcoin technical analysis. Source: TradingView.com
How High Can Bitcoin Go?
Standard
Chartered analyst Geoff Kendrick believes Bitcoin will reach $120,000 by the
end of Q2, potentially influenced by Federal Reserve interest rate decisions. Market
analysts generally agree that breaking through the psychological barrier of
$100,000 may trigger FOMO (fear of missing out) sentiment, accelerating the
increase with targets pointed toward the $110,000-$156,000 range.
Other
forecasts are even more ambitious.
“We
expect a strategic asset reallocation away from U.S. assets to trigger the next
sharp upswing in bitcoin in the coming months,” Kendrick said.
“I
definitely would not be surprised at all to see $200,000 Bitcoin or $250,000
Bitcoin this year,” Joe Burnett, Director of Market Research at Unchained stated
during a recent Cointelegraph Chain Reaction show on X (formerly Twitter). His
bullish outlook isn’t merely wishful thinking but grounded in several
converging factors.
Bitcoin is
making headlines again, soaring to $100,000 for the first time since February
2025, with a current price hovering around $99,500, up 2.6% daily and 3.5%
weekly, according to CoinGecko data. This meteoric rise is driven by a
confluence of global economic developments, institutional investment, and
market optimism. Let’s dive into the key factors propelling Bitcoin’s price
upward today, May 8, 2025.
On many
cryptocurrency exchanges, Bitcoin’s price came close to the psychological level
of $100,000 during Thursday’s session. However, it has yet to reach that
milestone on Binance, where the current intraday high stands at $99,888. As of
now, BTC is trading at around $99,500.
Nonetheless,
this marks the first time in three months—since February—that Bitcoin has
climbed into six-figure territory, rebounding more than 30% from the lows
recorded in April.
Bitcoin price today. Source: TradingView.com
Other
cryptocurrencies are also rising alongside Bitcoin. Ethereum (ETH) has gained
over 7% in the past 24 hours, testing the $2,000 mark, while Dogecoin (DOGE) is
up 6% and currently trading at $0.18.
Bitcoin’s
rally triggered a cascade of liquidations of leveraged short positions, with
nearly $300 million wiped from the market in the past 24 hours, according to
data from CoinGlass.com. Bitcoin accounted for over one-third of these
liquidations, totaling $116 million. Ethereum came in second with $87 million
in liquidated short positions.
Largest short liquidation since mid-April. Source: CoinGlass.com
Why Is Bitcoin Price Going
Up Today? 3 Main Reasons
US-China Trade Talks Spark
Risk-On Sentiment
A
significant catalyst for Bitcoin’s surge is the anticipation of de-escalating trade
tensions between the United States and China. U.S. Treasury Secretary Scott
Bessent is preparing for talks with China in Switzerland, signaling a potential
thaw in the trade war ignited by President Donald Trump’s “Liberation Day”
tariffs announced on April 2, 2025. These tariffs initially sent Bitcoin
tumbling 32% from its January high of $109,241 to below $75,000. However,
Bessent’s focus on “de-escalation” has reignited investor confidence, boosting
risk assets like Bitcoin.
Additionally,
Trump teased a “major trade deal” on Truth Social, widely speculated to involve
the UK. This news has further fueled a risk-on market tone, with eToro market
analyst Josh Gilbert noting, “Trade tensions appear to be easing, with Donald
Trump signaling a willingness to negotiate, and that’s helping lift sentiment
across risk assets, particularly Bitcoin ”.
Paul Howard, Wincent
“Overall, we are seeing a net positive shift in risk
assets, with Bitcoin advancing 2.7% over the past 24 hours. The market now
anticipates a potential follow-through later this year; whether in the form of
rate cuts or broader macroeconomic stimulus. This could serve as a further
catalyst for upward price momentum,” said Paul Howard, Director at Wincent.
Federal Reserve’s Steady
Rates Bolster Bitcoin
The Federal
Reserve’s decision to maintain interest rates at 4.25%–4.5% on May 7, 2025, has
also played a pivotal role. Despite pressure from Trump to slash borrowing
costs, Fed Chair Jerome Powell cited “heightened uncertainty” while emphasizing
the U.S. economy’s “solid position”.
This steady
policy has reassured markets, providing a stable backdrop for risk assets like
Bitcoin to thrive. Marco Lim of MaiCapital told Decrypt, “The potential for
Bitcoin to reach $120,000 is closely tied to the Federal Reserve’s interest
rate decisions,” highlighting expectations of future rate cuts boosting
liquidity and Bitcoin’s price.
Institutional Investment
and ETF Inflows Surge
Institutional
adoption continues to be a powerhouse behind Bitcoin’s rally. Spot Bitcoin
exchange -traded funds (ETFs) saw $142 million in inflows on Wednesday, May 7,
2025, reversing Tuesday’s $85 million outflows, with Ark Invest’s ARKB leading
at $54.7 million.
Bitcoin ETF inflows. Source: Farside.co.uk
These ETFs,
launched in early 2024, have attracted over $35 billion in net inflows this
year, underscoring Bitcoin’s growing appeal as a portfolio diversifier. Peter
Chung of Presto told Decrypt, “Global institutions now realize the need to
diversify away from USD assets, which would benefit both gold and Bitcoin.”
Notably,
major players like Abu Dhabi’s sovereign wealth fund and the Swiss National
Bank have increased their Bitcoin exposure through ETFs and companies like
MicroStrategy, which holds 555,450 BTC as of May 4, 2025.
Bitcoin as a Hedge Against
U.S. Asset Uncertainty
Bitcoin’s
resurgence also reflects a broader shift in investor sentiment amid doubts
about U.S. financial assets. Trump’s tariffs have raised concerns about
inflation and economic growth, prompting investors to seek alternatives to U.S.
stocks, Treasuries, and the dollar.
Reuters
reports that Bitcoin outperformed stock markets in 10 of 17 sessions since
April 2, 2025, climbing 33% from its April low. Unlike its historical
correlation with tech stocks, Bitcoin is now showing signs of decoupling, with
Block Scholes analysts noting it’s “not just the 501st company in the S&P
500”.
This shift
is reinforced by Bitcoin’s inverse correlation to the Treasury yield curve, the
strongest in over two years, and
its outperformance of gold’s 11% rise since April. Martin Leinweber of
MarketVector Indexes told Reuters, “The damage has been done in terms of trust
towards the U.S. and dollar assets,” positioning Bitcoin as a “neutral asset”
for diversification.
Technical Analysis
Suggests Short-Term Bitcoin Correction
According
to my technical analysis, the more than 30% rally over the past month may face
a healthy downward correction, especially after testing the psychological level
of $100,000. The Relative Strength Index (RSI) has been hovering near the
overbought zone since mid-April, increasing the likelihood of a price pullback
from current levels.
Where could
Bitcoin head next? My target would be the support zone I’ve repeatedly
mentioned in the past—between $90,000 and $92,000. This range marks the lows
formed from November 2024 through February of this year. A drop below that
level wouldn’t necessarily spell the end of the uptrend, as Bitcoin established
another significant support band between $78,400 and $74,300 from February to
April. I consider that area the final line of defense.
Only a
breakdown below those levels would prompt me to reassess the bullish outlook.
Bitcoin technical analysis. Source: TradingView.com
How High Can Bitcoin Go?
Standard
Chartered analyst Geoff Kendrick believes Bitcoin will reach $120,000 by the
end of Q2, potentially influenced by Federal Reserve interest rate decisions. Market
analysts generally agree that breaking through the psychological barrier of
$100,000 may trigger FOMO (fear of missing out) sentiment, accelerating the
increase with targets pointed toward the $110,000-$156,000 range.
Other
forecasts are even more ambitious.
“We
expect a strategic asset reallocation away from U.S. assets to trigger the next
sharp upswing in bitcoin in the coming months,” Kendrick said.
“I
definitely would not be surprised at all to see $200,000 Bitcoin or $250,000
Bitcoin this year,” Joe Burnett, Director of Market Research at Unchained stated
during a recent Cointelegraph Chain Reaction show on X (formerly Twitter). His
bullish outlook isn’t merely wishful thinking but grounded in several
converging factors.
