Bitcoin, the world's largest cryptocurrency, has once again crossed the $100,000 mark, reaching a value of $100,794 as of May 8, 2025, at 18:29, according to data from CoinDesk. This significant milestone marks the first time Bitcoin has traded at such a high level since January 2025. The cryptocurrency's market capitalization now stands at slightly over $2 trillion, reflecting a robust resurgence in investor confidence.
In addition to Bitcoin's remarkable climb, Ethereum, the second-largest cryptocurrency, also experienced a surge, crossing the $2,000 threshold on the same day. Over the past 24 hours, Ethereum's value increased by more than 11%, signaling a broader recovery in the cryptocurrency market.
The recent price surge of Bitcoin can be attributed to several factors, most notably the easing of trade tensions following a trade agreement announced by U.S. President Donald Trump with Great Britain. This agreement, which aims to reduce tariffs on steel and automobiles, has alleviated concerns regarding inflation in supply chains, which have been troubling investors in risk assets like cryptocurrencies.
As reported by Bloomberg, Bitcoin's growth was fueled by the optimism surrounding this agreement, which is expected to lay the groundwork for stronger relations between the U.S. and the U.K. Trump stated, "Our administration has reached an agreement with Great Britain," highlighting the significance of this development in the context of global trade.
Earlier on the same day, Bitcoin had already been approaching the $100,000 mark amid discussions surrounding the U.S. Federal Reserve's decisions on interest rates. During a press conference, Federal Reserve Chair Jerome Powell acknowledged that the accumulated trade risks necessitate a cautious approach. This acknowledgment has made cryptocurrencies like Bitcoin more attractive as a capital preservation tool during challenging economic conditions.
Market analysts are now eyeing $105,000 as the next level of resistance for Bitcoin. Should the trade agreement proceed without any unexpected complications, bullish traders could quickly set their sights on $120,000. This sentiment is further supported by the liquidation of over $492 million in short positions on derivative platforms in the last 24 hours, according to CoinGlass data.
The rise of Bitcoin in 2024, when it more than doubled in value, was largely driven by the U.S. Securities and Exchange Commission's approval of exchange-traded funds tied to its spot price. The optimism surrounding the easing of regulatory hurdles following Trump's return to the White House also played a crucial role in propelling Bitcoin's value.
Bitcoin first exceeded the $100,000 mark in early December 2024, primarily due to investor speculation on upcoming nominations in the new U.S. administration. The cryptocurrency has since shown resilience and adaptability, responding positively to both regulatory developments and global economic changes.
As the cryptocurrency market continues to evolve, the interplay between global trade agreements and digital asset valuations will likely remain a focal point for investors. The latest surge in Bitcoin's price not only reflects a recovery in market sentiment but also underscores the growing acceptance of cryptocurrencies as viable investment options in an increasingly digital economy.
In conclusion, the recent developments surrounding Bitcoin and Ethereum highlight the dynamic nature of the cryptocurrency market. With significant milestones being reached and new trade agreements shaping investor sentiment, the future of digital currencies appears to be on an upward trajectory, promising exciting opportunities for both seasoned investors and newcomers alike.
