Bitcoin has once again crossed the $100,000 price threshold, marking a significant milestone in the cryptocurrency's journey. This recent surge in value, which occurred on May 8th at 3:22 pm UTC, saw Bitcoin rise by 4.2% from its intraday low of $95,967, according to data from CoinGecko. This is the third time that Bitcoin has surpassed the six-figure mark, with the previous instances being in December 2024 and January 2025.
Unlike previous occasions when Bitcoin reached $100,000, this latest spike in price coincided with a surge in Bitcoin market dominance, which climbed above 60%. This shift in dominance suggests a potential bearish sentiment for alternative cryptocurrencies, commonly referred to as altcoins.
Bitcoin dominance, which represents the share of the total cryptocurrency market held by Bitcoin, has been steadily increasing over the past year. During Bitcoin's initial run to $100,000 in December 2024, its dominance stood at 52%, rising to 54% by January 2025. The current spike in dominance aligns with levels last seen in early 2021 when Bitcoin was trading around $36,000 and heading towards its previous all-time highs above $60,000.
Various factors have been attributed to Bitcoin's recent surge in price. Political developments, institutional interest, and macroeconomic conditions have all played a role in driving investor sentiment towards the cryptocurrency. Speculation around a potential trade deal between the US and the UK, hinted at by former US President Donald Trump, has also been linked to the bullish momentum in the Bitcoin market.
Additionally, falling bond yields, a weakening dollar, and renewed institutional inflows into spot Bitcoin exchange-traded funds have further supported Bitcoin's upward trajectory. Institutional investors have shown increased interest in Bitcoin as a potential hedge against economic uncertainty, further solidifying its position as a long-term store of value.
Despite the positive momentum, market experts remain cautious, highlighting upcoming US economic data releases as critical factors that could influence Bitcoin's future price movements. Events such as the US budget data release on May 12 and the Consumer Price Index (CPI) report on May 13 are expected to provide insights into Bitcoin's trajectory in the coming weeks.
Looking ahead, analysts foresee the possibility of Bitcoin surpassing $110,000 in the near future, with potential for sustained growth beyond 2025. As global crypto regulations evolve and strategic Bitcoin reserve initiatives continue to unfold, the outlook for Bitcoin
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