Bitcoin has recovered a price level of $100,000 for the first time since January, reflecting new bullish sentiment among investors.
Bitcoin (BTC) regained UTC $100,000 at 3:22pm on May 8, surged 4.2% from its internal low of $95,967, according to Coingecko data.
It was the third time BTC has broken six-figure levels since it first achieved it on December 5, 2024.
Unlike its previous $100,000 hit, the Bitcoin market dominance surged beyond 60%, creating a new price spike, reflecting the altcoin bearish sentiment.
Bitcoin advantages of under 60% in past $100,000 breakthroughs
Bitcoin domination – the share of assets in the total cryptocurrency market – has been steadily rising over the past year. When it reached $100,000 during its first run in December 2024, BTC was 52%. By January 2025, that figure had risen to 54%.
Bitcoin Dominance’s latest spikes coincides with a historical level of over $60,000 in early 2021, with Bitcoin trading for around $36,000 in the past, exceeding the previous all-time high of $60,000.
“Bitcoin has been showing strength for weeks, surpassing other digital tokens and barely flinching at anything like geopolitical events in Asia and the Middle East that could have influenced the past.”
“With gold also runs all year round, there are cases where they say Bitcoin could have proven economic hedges and a storage space of long-term value,” he added.
Why is Bitcoin prices rising now?
Bitcoin’s latest $100,000 breakthrough occurred amid a combination of political, institutional and macroeconomic factors.
Some of the community linked Bitcoin’s latest bullish action with a potential trade deal between the US and the UK that Trump suggested in a true social post on May 7th.
“Bitcoin accounts for nearly $100,000, which is a critical psychological level for traders after Trump suggested a major trade deal with the UK,” Chronos’s Chief Research Investment Officer, Vincent Liu, told Cointelgraf.
Related: BLACKROCK BITCOINETF records 16-day influx as BTC collects 97K
Liu said the rally was also supported by a decline in bond yields, a weaker dollar, and a decline in facilities on the spot Bitcoin exchange, which saw a $1.8 billion inflow inflow over past trading weeks.
According to Liu, despite bullish momentum and the Crypto Fear & Greed Index being integrated in the “Green” area with current scores, it is expected to quickly predict Bitcoin’s movements.
“The momentum is strong, but the US budget data on May 12 and the May 13 CPI (Consumer Price Index) are important in determining whether BTC can break and hold above this level. For the rally to maintain, the trade deal narrative must evolve into concrete progress.”
According to Valr’s chief marketing officer Ben Caselin, there is a “good chance” for Bitcoin to chart a new high north of $110,000 as assets seek to consolidate value over $100,000.
“Retail is traditionally set to reach the second half of Bitcoin’s four-year cycle, which could potentially reach the macro top in the fourth quarter of this year,” Caintelin told Cointe Legra.
At the same time, given the continued advancements in global crypto regulations and multiple strategic Bitcoin reserve initiatives, Caselin also sees the opportunity for “long-term growth to accelerate and accelerate growth beyond 2025.”
Additional report by Amin Hakshana.
Magazine: From Bitcoin to $1 million by 2029, ‘CIA Tilts Hats to Bitcoin: Hodler’s Digest, April 27th – May 3rd
