Bitcoin Surges Over 23% in a Month, Breaches $99,000: Understanding the Crypto Rally

Bitcoin (BTC) has demonstrated significant upward momentum, crossing the $99,000 mark today, May 8, 2025. This represents a substantial 23.34% increase from its price of $79,475.31 just a month ago, on April 8, 2025.

On Thursday, Bitcoin climbed by 2.59% to reach $99,025, fueled by positive market sentiment surrounding discussions of a potential US-China trade deal and an announcement by Donald Trump regarding a ‘major trade deal’ with the UK. This surge underscores the strong investor confidence currently present in the market.

As of 10:29 am today, the price of Bitcoin stood at $99,025.59, boasting a market capitalization of $1.97 trillion. Its 24-hour trading volume was $48.34 billion, according to binance.com. Bitcoin’s price has risen by 2.59% in the last 24 hours, with a circulating supply of 19.86 million coins.  

The broader cryptocurrency market also experienced gains, with Ethereum (ETH) jumping by 3.56%, XRP rising by 1.71%, and Solana (SOL) increasing by 3.27% on Thursday.

Why Is Bitcoin Experiencing This Bullish Trend?

Avinash Shekhar, co-founder and CEO of Pi42, attributes this rebound in Bitcoin and the positive performance of altcoins to the market’s sensitivity to macroeconomic factors, particularly the optimistic sentiment surrounding US-China trade talks.

Shekhar further noted that Bitcoin’s swift return above the $99,000 level indicates strong investor confidence. He also highlighted the strong performance of altcoins like LTC and HYPE, suggesting a rotation of capital by traders into high-potential alternative cryptocurrencies amid renewed bullish momentum.

“As regulatory developments and global economic cues continue to unfold, we expect heightened volatility but with a bullish undertone in the near term,” Shekhar advised traders.

According to the CoinSwitch Markets Desk, Bitcoin’s move past $99,000 is its highest point in 75 days, marking a 2.56% gain over the last 24 hours. The price is currently well-supported, trading above its 50-day, 100-day, and 200-day moving averages.

The CoinSwitch Markets Desk also pointed to continued institutional momentum, with US spot Bitcoin ETFs recording net inflows of $105 million the previous day. Additionally, Tokyo-based Metaplanet acquired 555 BTC as part of its ongoing accumulation strategy. Among altcoins, Sui saw a gain of 5.1%, followed by ADA and SOL, which rose by 3.1% and 2.3%, respectively.  

In traditional markets, US equities closed higher on Wednesday as traders absorbed signals from US-China trade discussions and the Federal Reserve’s decision to maintain interest rates. The S&P 500 increased by 0.4%, the Nasdaq added 0.3%, and the Dow climbed by 0.7%.

Should You Consider Buying?

The current bullish momentum in Bitcoin and select altcoins is influenced by a combination of macroeconomic factors, institutional interest, and positive regulatory signals. However, the cryptocurrency market remains inherently volatile.

Analysts suggest that while the near-term outlook may be bullish, traders should be prepared for potential volatility as global economic cues and regulatory developments continue to unfold.

Disclaimer: This is not financial advice. The cryptocurrency market is highly volatile, and past performance is not indicative of future results. Any investment decisions should be based on your own thorough research and risk assessment.