Bitcoin Surpasses $100,000: What’s Behind the Latest Bullish Breakout?

Bitcoin Surpasses $100,000 Amid Rising Market Optimism

On May 8, 2025, Bitcoin (BTC-USD) reached an impressive $103,460, marking a significant rally with a 6% rise over the past 24 hours. This surge came after President Trump unveiled a new US-UK trade deal, which helped to fuel optimism across global markets. Despite Bitcoin's price volatility in recent months, the surge above the $100,000 threshold shows growing confidence in the cryptocurrency's future, with institutional demand and global trade optimism playing key roles in its recovery.

Ethereum (ETH-USD) Leads Altcoin Rally with 20% Jump

In tandem with Bitcoin's surge, Ethereum (ETH-USD) experienced a remarkable 20% rally, climbing to $2,200. This marked the first time Ethereum reached this level since March 2025, as market participants flocked to altcoins, bolstered by a broader risk-on sentiment across equities and digital assets. Ethereum's bullish momentum reflects a growing institutional interest in alternative cryptocurrencies, driven by both technological developments and favorable market conditions.

US-UK Trade Deal and Cryptocurrency Surge

The announcement of the US-UK trade deal, despite its limited immediate economic impact, injected optimism into global markets, including the cryptocurrency space. President Trump touted the deal as the first of many, promising billions in market access for US exports, particularly in agriculture and manufacturing. As a result, Bitcoin (BTC-USD) and other risk assets saw an uptick, with Bitcoin breaking the $100,000 mark, up 6% over the past 24 hours. This upward momentum came amid expectations that further trade deals, including those with China, could de-escalate tariffs and provide additional growth catalysts for both the stock market and digital currencies.

Bitcoin's Institutional Demand Grows Amid Economic Uncertainty

Bitcoin is gaining increasing traction among institutional investors, highlighted by a significant increase in inflows into Bitcoin ETFs. The BlackRock iShares Bitcoin Trust (IBIT) has attracted $6.96 billion in YTD inflows, surpassing the SPDR Gold Shares ETF (GLD), which has only garnered $6.5 billion. This shows growing confidence in Bitcoin's (BTC-USD) long-term value, even as gold has seen a 29% price increase in 2025. With Bitcoin ETFs seeing robust demand and liquidity, the cryptocurrency is increasingly seen as a viable store of value and a hedge against traditional assets, despite its price volatility.

Bitcoin Price Momentum and Rising Institutional Interest

Since its February 2025 low, Bitcoin (BTC-USD) has surged more than 40%, driven by both institutional inflows and broader market recovery. With Bitcoin’s price breaking above $100,000, market participants are repositioning for further potential upside. Institutional investors continue to pour capital into the asset, with large holders or whales accumulating significant amounts of Bitcoin in spot ETFs. The strong demand and upward momentum signal that Bitcoin's future price could surpass $120,000 in 2025, according to Standard Chartered’s Geoffrey Kendrick, driven by institutional and sovereign adoption of the asset.

Bitcoin's Bullish Outlook and Strong Demand

Bitcoin’s outlook continues to strengthen, with analysts predicting a potential price target of $120,000 by the second quarter of 2025. Bitcoin's institutional adoption is a key factor driving this rally, with ETFs seeing record inflows and large financial corporations increasing their exposure to the cryptocurrency. Additionally, the adoption of Bitcoin by sovereign entities, such as New Hampshire approving a Bitcoin strategic reserve, further supports the bullish outlook. Bitcoin's (BTC-USD) future growth is underpinned by these developments, signaling that it may become an integral part of diversified portfolios globally.

Bitcoin Hits $100,000 Amid Global Trade Optimism

On May 8, Bitcoin broke the $100,000 barrier, aided by Trump's announcement of a US-UK trade agreement and growing optimism over rate cuts. Bitcoin's price reached as high as $103,460, reflecting a 5% surge over the previous 24 hours. With global equities and cryptocurrencies rallying in tandem, Bitcoin's (BTC-USD) price could continue to rise, especially with more trade deals expected, including those with China. Analysts are watching the $107,000 to $120,000 resistance zones, which could mark the next milestones for Bitcoin's upward trend.

Bitcoin's Key Support and Resistance Levels to Watch

For traders and investors, Bitcoin's recent surge above $100,000 is an important technical milestone. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators point to a strong bullish trend, although caution is advised as the asset approaches overbought conditions. The $107,000 and $120,000 levels are crucial overhead areas to watch, with potential for a further breakout if Bitcoin can sustain momentum. Conversely, if Bitcoin faces short-term profit-taking, support levels near $100,000 and $92,000 will be important to monitor, as these levels provide strong technical backing from previous price action.

Institutional Demand and Bitcoin’s Growing Role as a Safe-Haven Asset

As global uncertainty drives demand for alternative assets, Bitcoin (BTC-USD) is increasingly viewed as a safe-haven asset. The institutional demand for Bitcoin is evident in the rising capital inflows into Bitcoin ETFs, which continue to outpace traditional assets like gold. Moreover, with Bitcoin’s adoption by sovereign entities, including New Hampshire's move to establish a Bitcoin strategic reserve, the digital asset is becoming an integral part of investment portfolios, adding further credibility to its position as a store of value.

Bitcoin’s Future: Projections Point to $120,000 in Q2 2025

Projections for Bitcoin’s (BTC-USD) price in 2025 are increasingly bullish, with some analysts forecasting $120,000 by the second quarter. This growth is expected to be driven by institutional adoption, sovereign recognition, and macro-economic factors such as trade deal optimism and easing tariff tensions. The institutional inflows into Bitcoin ETFs, coupled with whale accumulation and growing regulatory adoption, reinforce the outlook for a strong Bitcoin rally in the coming months.

Bitcoin and the Broader Crypto Market: Key Trends to Watch

As Bitcoin (BTC-USD) continues its ascent, the broader crypto market is also experiencing strong momentum. Ethereum (ETH-USD) and Ripple (XRP) are benefiting from increased institutional interest and bullish sentiment, with Ethereum reaching $2,200 and XRP targeting $2.50. The rise of altcoins is contributing to the overall market rally, reflecting a shift toward higher-risk assets as investor confidence grows in both traditional markets and cryptocurrencies.

Key Price Levels for Bitcoin’s Next Move

Traders should monitor key price levels for Bitcoin as it continues to push higher. The $107,000 and $120,000 resistance levels are crucial for determining the future trajectory, with potential for significant gains if these levels are breached. However, traders should also keep an eye on potential pullbacks, with support levels at $100,000 and $92,000, as these could provide buying opportunities in the event of short-term corrections.

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