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.

Bitcoin Price Test $100K Mark First Time Since February

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.

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.

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 Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term.”

“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.

“The Fed has decided to keep benchmark interest rates steady. As analysts, we need to step back and ask why the Fed made that choice. The answer is simple: uncertainty,” commented Dr Kirill Kretov at CoinPanel. “From my perspective, this uncertainty translates directly into heightened volatility (both natural and artificial), which has become the new normal in crypto. Our recent blockchain research confirms that a significant amount of liquidity has been steadily withdrawn from actively transacting addresses, especially exchanges, since November.”

Institutional Investment and ETF Inflows Surge

Institutional adoption continues to be a powerhouse behind Bitcoin’s rally. Spot Bitcoin exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term-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.

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.

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.