Bitcoin is making headlines again as its value surged to nearly $100,000, a significant milestone not seen since February 2025. As of May 8, 2025, Bitcoin traded at approximately $99,588.8, reflecting a notable increase of 7.1% over the past two weeks and 24.8% over the month. This resurgence comes on the heels of positive macroeconomic signals and a growing interest from large institutional players in the cryptocurrency market.
In a recent analysis, Rachel Lucas, an analyst at BTC Markets, emphasized that the $100,000 mark is not just a psychological threshold but a signal of strengthening confidence among investors. "If Bitcoin can surpass the psychological mark of $100,000 and maintain its position above it, it could retest its historical maximum of $109,588 on the Binance exchange," she stated.
The rally began after announcements of renewed trade negotiations between the United States and China, which were made on Wednesday morning (May 7) Asian time. Market participants are hopeful that these negotiations could lead to a reduction in tariffs that have been a source of tension for investors. This optimism is reflected in the increasing market activity, as traders anticipate that a potential deal could alleviate investor concerns and contribute to a broader financial market recovery.
Scott Bessent, the U.S. Secretary of the Treasury, is scheduled to meet with Chinese trade representatives to discuss potential trade agreements. This meeting marks the first significant dialogue since former President Donald Trump implemented high tariffs on Chinese imports, which had previously contributed to market volatility.
In addition to the trade discussions, the Federal Reserve's recent decision to maintain interest rates at 4.25-4.5% has also positively influenced Bitcoin's performance. The Federal Open Market Committee (FOMC) met on May 7 and opted to keep rates unchanged for the third consecutive time. Bitcoin responded to this news with a surge, reaching a peak of $99,419, although it has yet to break through the $100,000 barrier.
According to the Nansen platform, there is a 55% probability that Bitcoin will gradually renew its price record in the coming weeks. This prediction is supported by the recent inflow of $5 billion into American spot ETFs on Bitcoin since April 25, 2025, indicating that institutional players are betting on the cryptocurrency's continued strength.
Moreover, the overall positive trend in the cryptocurrency market is bolstered by a supply deficit following the recent halving event, which has heightened interest in non-correlated assets amid ongoing macroeconomic changes. "Although short-term volatility and profit-taking at round resistance levels are expected, the overall trend remains positive," Lucas added.
As Bitcoin approaches the $100,000 mark, traders are also paying close attention to the upcoming speech by Donald Trump, scheduled for May 9, where he is expected to discuss key trade agreements. Any new statements from Trump could further influence market volatility.
The cryptocurrency market has been experiencing a rally for two consecutive days, with Bitcoin leading the charge. On May 8, Bitcoin's price rose by 2.6%, bringing it closer to its February high. The last time Bitcoin traded above $100,000 was in late February, after which it plummeted to around $75,000 in early April, primarily due to the tariff policies of the Trump administration.
In addition to Bitcoin's gains, other cryptocurrencies have also seen significant increases. Ethereum, for example, rose by 6.8% on the same day, reaching $1,900. This widespread rally across the cryptocurrency market signals a renewed interest and optimism among investors.
As the cryptocurrency landscape continues to evolve, the interplay between geopolitical developments, economic policies, and investor sentiment will remain critical in shaping market dynamics. Analysts are closely monitoring these factors, as they could lead to a new historical maximum for Bitcoin and potentially reshape the broader financial markets.
In summary, Bitcoin's recent rise is attributed to a combination of positive macroeconomic signals, institutional interest, and anticipated trade negotiations between the U.S. and China. With the cryptocurrency nearing the $100,000 mark, investors are hopeful for continued growth in the coming weeks.
