Bitcoin has surpassed $100,000, hitting notable market dominance above 60%. Contrary to popular belief, the spike isn’t solely due to Spot Bitcoin ETFs, but also macroeconomic improvements, such as a new U.S.-U.K. trade deal soothing investor fears. Bitcoin’s future looks potentially sustainable with a mix of on-chain strengths and declining exchange holds.
Bitcoin has once again breached the psychologically significant $100,000 mark, reprising its role as the leading cryptocurrency after months of declining prices. This marks the first time since January that Bitcoin has crossed this threshold. Meanwhile, the crypto Fear and Greed Index has shifted back into the “greed” category, suggesting a renewed confidence among investors.
Along with reclaiming the $100,000 level, Bitcoin’s dominance within the market has risen beyond 60%. This increase in Bitcoin’s market share lends credence to the rally being more sustainable this time around. It’s essential to note that Bitcoin’s recovery comes at a time when it holds a considerably stronger position in the market than before.
The recent climb above $100,000 has breathed fresh life into the broader cryptocurrency landscape. After a period of stagnancy and caution, Bitcoin has broken through several resistance levels just this past week, although a few challenges remain before it can aim for new all-time highs, previously pushing as high as $109,000.
Common assumptions suggest that Spot Bitcoin ETFs are the primary driver behind this recent price rally. But the inflows don’t tell the entire story; averaging around $129 million in the last couple of days, this is a minimal amount compared to the over $700 million seen during Bitcoin’s previous ascent past the $100,000 mark in January. Rather, macroeconomic changes combined with specific market dynamics are driving prices upward this time.
A significant factor in shifting investor sentiment has been the new U.S.-U.K. trade deal unveiled on May 8, 2025. President Donald Trump and Prime Minister Keir Starmer have come to an agreement that keeps a 10% U.S. tariff on British imports in place, while the U.K. reduces its own tariffs to just 1.8%. This easing of trade tensions has calmed investor nerves, as fears of rising tariffs had previously pushed Bitcoin down to $74,000 earlier in April. Now, with the outlook improving, investments are flowing back into higher-risk assets like Bitcoin, providing a crucial boost.
When examining the sustainability of Bitcoin’s latest rally, it is evident the conditions differ significantly compared to prior surges above six figures. A key distinction lies in Bitcoin’s current market dominance, which now exceeds 60%. This level of control indicates a stronger foundational support for Bitcoin’s price movements. As crypto analyst Rekt Capital notes, there’s a potential for dominance to reach 71% over time.
Further evidence supporting the current rally includes on-chain data revealing a decline in exchange balances, which often prefaces upward trends. In addition, significant stablecoin inflows into exchanges typically indicate upcoming buying activity.
Currently, Bitcoin is trading at around $102,900, having peaked at an intraday high of $103,890. This puts it a touch under 6% away from reclaiming its January all-time high of $108,780. According to data from glassnode, nearly 3 million BTC have re-entered profit, bouncing back from April’s low of $74,000 and the latest price points.
Overall, while optimism reigns as Bitcoin surpasses the critical $100,000 mark again, the market remains watchful of whether this momentum is truly sustainable or just a short-term flicker in an ever-volatile landscape.
