Bitcoin Surpasses $100K Mark Again, Signalling Strong Investor Sentiment

Bitcoin has reached the $100,000 mark again for the first time since January, signalling a bullish trend among investors. As of May 8, BTC surged 4.2% from a low of $95,967. Bitcoin’s market dominance also rose above 60%, distinguishing this surge from previous ones. Factors such as a potential US-UK trade deal, declining bond yields, and rising ETF inflows contribute to this rally. Analysts are mindful of upcoming US economic data influencing these moves.

Bitcoin has crossed the $100,000 threshold for the first time since January, marking a wave of optimism among investors. According to CoinGecko, this occurred on May 8 at 3:22 PM UTC, with a notable rise of 4.2% from the day’s low of $95,967. This is the third occasion BTC has reached this significant price point since debuting over six figures back on December 5, 2024, with its previous high also peaking at $100,000 in January 2025, prior to Donald Trump’s inauguration.

What’s different this time? Alongside the price surge, Bitcoin’s market dominance has exceeded 60%. This uptick appears to signal increasing bearish sentiment towards alternative cryptocurrencies, or altcoins, something that was notably different in previous spikes where dominance hovered below the 60% mark. During its first spike to $100,000 in December, Bitcoin dominance was only at 52%. By its subsequent rise in January, it had only improved to 54%.

This recent jump in Bitcoin dominance aligns with highs not seen since early 2021, a period when Bitcoin was priced around $36,000, edging towards prior records above $60,000. Mercuryo CEO Petr Kozyakov commented to Cointelegraph that Bitcoin has demonstrated robust performance in recent weeks, outpacing other digital assets. He mentioned it has remained relatively unaffected by geopolitical turmoil, an issue that has historically influenced the cryptocurrency market.

Looking deeper into what’s driving this upward momentum, a mix of political, institutional, and macroeconomic factors appears to be at play. Some enthusiasts link the current price rally to a trade deal that Trump has alluded to with the UK, following a post on Truth Social on May 7. Vincent Liu, chief investment officer at Kronos Research, spoke on this, indicating that this narrative may be giving Bitcoin a significant psychological boost as it approaches the $100,000 mark.

Further supporting this rise are falling bond yields, a weakening US dollar, and a notable influx into Bitcoin exchange-traded funds, which saw a hefty $1.8 billion flow over the past week. Despite the positive indicators and the Crypto Fear & Greed Index tilting towards optimism, Liu mentioned that certain economic reports due soon could influence Bitcoin’s trajectory. Key data on the US budget is expected on May 12, with Consumer Price Index (CPI) numbers following on May 13.

Experts remain cautious, with Liu suggesting that for the current rally to endure, the narrative surrounding the trade deal needs to crystallise into tangible progress. Meanwhile, Ben Caselin, chief marketing officer at VALR, believes there’s a strong possibility for Bitcoin to surpass $110,000 soon as it stabilises above the $100,000 mark. He asserted that retail interest might contribute significantly as we enter the latter phase of the Bitcoin four-year cycle, potentially peaking in Q4 of this year.

In the landscape of evolving global crypto regulations and strategic reserve initiatives, he believes there’s potential for both sustained and expedited growth beyond 2025.

Additional reporting by Amin Haqshanas.
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