Bitcoin Surges 45% Year-to-Date, Breaks $100,000 Mark

Coin WorldThursday, May 8, 2025 12:47 pm ET
2min read

Bitcoin (BTC) has surged past the $100,000 mark for the first time in over two months, driven by a confluence of factors including bullish market sentiment, rising institutional adoption, and renewed macroeconomic confidence. The flagship cryptocurrency hit an intraday high of $101,493, extending a broader rally that has gained significant momentum in recent weeks. This surge has pushed Bitcoin's year-to-date gains to over 45%, reclaiming ground after a steep pullback to $74,000 in the first quarter.

The rally in Bitcoin has been accompanied by a broader uptick in the crypto market, with most of the top 10 digital assets posting double-digit percentage gains over the past day. Ethereum (ETH) climbed above $2000 for the first time since falling below it earlier in the year, trading at $2053 as of press time. Solana (SOL) was up over 10% and trading around $160, while BNB was trading at $621 after more modest gains of roughly 3.5% over the past day. XRP was up 6.4% and trading at $2.25, while Dogecoin (DOGE) was up over 10% and trading a little above $0.19.

The announcement of a comprehensive trade deal between the US and the UK, aimed at reducing tariffs and boosting financial cooperation, provided a fresh tailwind to already-rising markets. The easing macroeconomic landscape, combined with the expectation of the Fed easing monetary policy in the coming months, has reignited risk-on sentiment among investors. This has led to a broad-based uptick in equities, commodities, and risk assets, including crypto.

Capital inflows into Bitcoin exchange-traded products have continued to accelerate, with several spot Bitcoin funds in the US collectively attracting over $1.4 billion in new assets last week alone. Institutional portfolios, including pension funds and endowments, have been increasing exposure amid shifting inflation expectations and softening Federal Reserve rhetoric. Shares of companies tied to the digital asset space also climbed on the news, with Coinbase gaining over 5.6% in early trading.

Bitcoin’s new milestone follows a period of sideways consolidation that saw wild swings in price levels after reaching an all-time high of $110,000. While momentum had stalled amid concerns over US regulatory uncertainty, recent comments from lawmakers signaling support for clearer market structure have reignited optimism across the sector. Despite the enthusiasm, investors remain cautious that Bitcoin’s six-figure threshold is as much a psychological marker as a technical one. BTC would have to sustain itself above $102,000, which is currently a key resistance level.

Still, the milestone caps a remarkable run for Bitcoin, which was trading below $20,000 as recently as late 2022. The current rally is another showcase of how quickly sentiment can shift in digital asset markets and how deeply embedded crypto has become in the global financial system. The broader crypto market is also rallying, with most of the top 10 digital assets posting double-digit percentage gains over the past day. This surge in Bitcoin and the broader crypto market highlights the growing acceptance and integration of digital assets into the global financial landscape.