BTC Surges Past $100K on Trump Trade Talk, ETF Inflows, and Renewed Market Optimism

Bitcoin surged past $100,000 for the first time since February, reaching over $103,000 amid renewed demand for risk assets. The rally followed comments from U.S. President Donald Trump, who hinted at a potential trade deal with the U.K. 

Additional tailwinds included: 

• Inflows into ETFs 
• Accelerating gains in Ethereum 
• A rally across crypto-related stocks

Bitcoin reclaimed six-figure territory for the third time in six months, following previous rallies in December 2024 and January 2025 amid Trump’s inauguration. 

However, this time, the rally shows stronger fundamentals. In addition to price gains, Bitcoin’s market dominance rose above 60%, its highest level since early 2021.

Despite the current momentum, BTC remains below its all-time high of $109,350, set in January. After falling to $74,000 in April, the latest rebound marks a strong attempt at recovery.

Read previous coverage: Bitcoin Clears $96K Resistance as Traders Brace for Fed Update

Ethereum, which had faced sustained pressure, also broke above the $2,000 mark for the first time since March. The asset surged more than 20% in 24 hours, signaling renewed interest in large-cap altcoins.

BTC and ETH Price Analysis for May 9, 2025

Bitcoin’s breakout above $100,000 marks a key technical milestone. The level, which previously acted as strong resistance, could now flip to support. The next upside target is the January high near $109,000. 

Could BTC retest $100,000? A pullback remains possible, especially given the psychological weight of the level and uncertainty ahead of upcoming U.S. macroeconomic data.

Ethereum also posted a strong move, breaking above $2,000 for the first time in six weeks. Still, the asset remains within a broader resistance zone. To escape the prolonged consolidation phase, ETH will need to hold above $2,000 and confirm its upward momentum.

Fundamentals Behind Bitcoin’s Rally: What’s Driving BTC Past $100K

Bitcoin’s surge is underpinned by several key factors. 

• On the geopolitical front, easing tensions have improved sentiment. The U.S. is engaged in talks with China, while Donald Trump has hinted at a potential trade agreement with the U.K. Both developments have pushed investors toward risk-on assets.

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• The macroeconomic backdrop is also favorable. Treasury yields are falling, the dollar is weakening, making BTC more attractive as an alternative to traditional assets.

• Institutional interest continues to rise, primarily through spot Bitcoin ETFs, which recorded $1.8 billion in inflows over the past week.

The regulatory environment in the U.S. is also evolving: 

• In states like Arizona and New Hampshire, newly passed laws are setting precedents for the custody of digital assets at the state level. 
• The U.S. Senate is reviewing the GENIUS Act, the first federal bill aimed at establishing clear rules for the stablecoin market. If passed, it could provide a regulatory foundation for growth and strengthen institutional trust in the space.
• Another market-moving catalyst came from Coinbase, which announced a $2.9 billion acquisition of crypto derivatives exchange Deribit. The deal signals the company’s push to expand in the sector. Following the news, crypto-related stocks rallied: spot ETFs gained over 5%, while COIN rose 5%.

Bitcoin Breaks $100K, but Market Still Moves on Headlines and Expectations

Bitcoin established support above $100,000, driven by a convergence of key catalysts: 

• Political signals 
• Macroeconomic tailwinds 
• Rising institutional participation

Nonetheless, market sentiment remains fragile. Upcoming U.S. inflation and budget reports could easily disrupt the current momentum.

Investor interest in Bitcoin is not limited to capital inflows. Regulatory and technological developments are also gaining traction. While price remains the first to react, the broader ecosystem follows suit.