Bitcoin has once more climbed past the landmark price of $100,000, stirring fresh enthusiasm among investors and signalling renewed bullish sentiment in the cryptocurrency market. This marks the first time since January that Bitcoin has reached such heights, a feat that underscores its resilience amid volatile global conditions.
The leading digital currency surged to $100,000 on May 8 at 3:22 PM UTC, after a 4.2% rally from its intraday low of $95,967. Although it later edged slightly lower as profit-taking commenced, the breakthrough sparked widespread discussion across financial circles.
“Bitcoin is hovering near $100,000, a key psychological level for traders, after Trump hinted at a major trade deal, likely with the UK,”
said Vincent Liu, Chief Investment Officer at Kronos Research.
His observation highlights the delicate interplay between global politics and digital asset valuations.
Bitcoin Dominance Surges as Altcoins Lag
Unlike prior surges past $100,000, this latest milestone coincided with Bitcoin’s market dominance soaring above 60 percent. Such a trend often suggests waning investor appetite for alternative cryptocurrencies. Bitcoin’s market share has been climbing steadily. During its initial rally past six figures in December 2024, its dominance stood at 52 percent, increasing to 54 percent by January 2025. This persistent growth signals investors’ growing preference for Bitcoin amid broader market uncertainty.
Notably, this event marks the third time Bitcoin has breached the six-figure threshold since first doing so on December 5, 2024. The second occurrence transpired on January 20, just ahead of United States President Donald Trump’s inauguration.
“Bitcoin has been showing strength for weeks now, outstripping other digital tokens, and scarcely flinching against the sort of geo-political events in Asia and the Middle East that may have impacted it in the past,”
remarked Petr Kozyakov, Chief Executive Officer of Mercuryo.
“With gold also running good all year, there’s now a case for saying that Bitcoin may have proven itself as an economic hedge and a long-term store of value,”
he added, reflecting on Bitcoin’s evolving role in global finance.
Trump’s Trade Developments Bolster Market Confidence
The recent price surge appears closely linked to positive political developments. On the day of the rally, President Trump announced a preliminary trade agreement with the United Kingdom—the first such deal since the commencement of his administration’s extensive tariff programme the previous month.
A report from Reuters noted that this agreement aims to reduce duties on key goods such as steel and automobiles. The prospect of alleviating supply-chain pressures and easing inflation fears injected a wave of optimism across risk-sensitive markets, including cryptocurrencies.
Traders quickly seized on the momentum, with substantial short positions being liquidated across derivatives exchanges in the past 24 hours, amplifying the upward pressure on Bitcoin’s price.
Anticipation Builds for Further Gains
Market participants are now closely watching the $105,000 level as the next critical resistance. Should the trade agreements materialise smoothly, bullish voices suggest that Bitcoin could rapidly advance towards $120,000.
Vincent Liu pointed to broader macroeconomic forces supporting the rally, including falling bond yields, a weakening United States dollar, and considerable institutional inflows into spot Bitcoin exchange-traded funds, which attracted $1.8 billion over the past week.
Despite the bullish undercurrents, Liu cautioned that near-term developments will be decisive:
“While momentum is strong, upcoming US budget data on May 12 and CPI [Consumer Price Index] on May 13 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.”
Long-Term Growth Outlook Remains Upbeat
Ben Caselin, Chief Marketing Officer at VALR, expressed confidence in Bitcoin’s upward trajectory. He indicated there is a “good chance” the digital asset could exceed $110,000 before long, potentially cementing a new price range above $100,000.
“Retail is only set to come in toward what is traditionally the latter part of the Bitcoin four-year cycle, which might see a macro top reached in Q4 of this year,”
Caselin stated.
Furthermore, he alluded to broader developments that could extend Bitcoin’s growth prospects:
“Prolonged and accelerated growth beyond 2025”
could be possible, Caselin suggested, citing advancements in global cryptocurrency regulation and various strategic Bitcoin reserve initiatives.
A Market Poised for Transformation
Bitcoin’s latest ascent to $100,000 reflects a confluence of factors, ranging from geopolitical negotiations to favourable macroeconomic conditions. While cautious optimism prevails, all eyes remain on upcoming economic indicators and global trade developments. Should these forces align, Bitcoin may be on the verge of rewriting its valuation narrative once again.
