On May 8, Bitcoin reclaimed the $100,000 price point for the first time since January, reflecting growing investor optimism. This surge was characterised by increased market dominance, rising above 60%, and potential bullish sentiment driven by macroeconomic factors and hints of international trade deals. With updated forecasts predicting possible further highs, the landscape for Bitcoin appears increasingly robust ahead.
Bitcoin has made headlines again, reclaiming the $100,000 price tag for the first time since earlier this year, specifically on May 8 at 3:22 pm UTC. This milestone saw a notable surge of 4.2% from its previous low of $95,967, as per CoinGecko’s tracking data. It’s significant—it’s the third occasion BTC has hit this six-figure benchmark since first crossing it back in December 2024. The second time was on January 20, coinciding with the lead-up to former President Donald Trump’s inauguration.
What’s more interesting is that this latest rise comes as Bitcoin’s market dominance surpassed the 60% threshold. This uptick could signal a bearish outlook for altcoins, suggesting that investors are turning their focus back to Bitcoin. During previous escapades hitting the $100k mark, BTC dominance was sitting below that figure; it was 52% in December 2024 and creeping up to 54% by January 2025.
According to reports, Bitcoin’s dominance levels are reminiscent of early 2021, a time when the asset traded around $36,000, moving towards its heights above $60,000. Petr Kozyakov, CEO of Mercuryo, commented that Bitcoin is demonstrating remarkable resilience against geopolitical disturbances in regions such as Asia and the Middle East, something that wouldn’t have been the case in the past. “With gold performing well this year, it raises the argument that Bitcoin has established its role as a potential economic hedge,” he noted.
So why the rapid rise in Bitcoin’s value right now? The new surge appears to be influenced by a mix of political and economic factors. Some analysts speculate that hints towards a possible trade deal between the US and the UK, as mentioned by Trump, might be driving the latest bullish sentiment. Vincent Liu, from Kronos Research, pointed out the psychological impact of Bitcoin hovering around $100,000 after the mention of such a deal.
Additionally, the rise is being supported by other economic indicators like dipping bond yields and a weakening dollar. Institutional interest seems to be rekindling, especially regarding spot Bitcoin ETFs which recorded an impressive $1.8 billion in inflows recently. However, analysts caution that while the buzz is significant, traders should look ahead to important US economic data releases slated for May 12 and 13, which could impact Bitcoin’s trajectory.
Ben Caselin, who is the chief marketing officer at VALR, believes there’s a strong possibility of Bitcoin hitting new highs, reportedly over $110,000, in the near future as it looks to stabilise above the $100k mark. He pointed out that retail participation is typically highest towards the end of Bitcoin’s four-year cycle, potentially pointing to macro highs in late 2023. Also, with advancements in global cryptocurrency regulations, the outlook for Bitcoin seems favourable for growth well into 2025 and beyond.
In summary, Bitcoin’s resurgence to $100,000 signals an invigorated market context, with keen investor interest and some hopeful signs for its future trajectory, as the world of cryptocurrency continues to evolve rapidly.
— Additional reporting by Amin Haqshanas.
