Bitcoin Price Surpasses $100,000 Again After Three-Month Downturn

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For the first time in three months, Bitcoin has reclaimed the $100,000 mark, signaling renewed momentum in the broader cryptocurrency market. On the evening of May 8, digital asset prices surged across the board, reigniting investor enthusiasm and spotlighting growing institutional confidence in decentralized finance.

Bitcoin climbed to **$103,000**, marking a 24-hour gain of over **5.9%**. This milestone follows a prolonged consolidation phase that saw the flagship cryptocurrency dip below $80,000 in early April amid macroeconomic uncertainty and shifting trade policies. Now, its resurgence reflects a confluence of favorable market developments—from global trade breakthroughs to expanding state-backed crypto adoption.

Market-Wide Momentum: Altcoins Follow Bitcoin’s Lead

The rally wasn’t limited to Bitcoin alone. The broader crypto ecosystem saw significant gains:

This synchronized upswing underscores heightened risk appetite among traders and investors, who are increasingly viewing digital assets as part of a diversified portfolio strategy.

👉 Discover how top investors are positioning themselves in this new crypto cycle.

Geopolitical Clarity Fuels Investor Confidence

A key catalyst behind the market rebound was the announcement by U.S. and British officials on May 8 that they had reached a preliminary agreement on tariff and trade terms. Under the deal, the UK agreed to ease restrictions on American agricultural and food imports, while the U.S. committed to lowering tariffs on British automobile exports.

This resolution helped ease global trade tensions that had previously unsettled financial markets. As a result, equities rallied—and so did risk-on assets like cryptocurrencies. With reduced fears of economic disruption, investors turned back to high-growth potential instruments, placing Bitcoin at the forefront.

Institutional Accumulation Signals Long-Term Conviction

Beyond sentiment shifts, hard data reveals strong institutional demand. Strategy, the world's largest corporate holder of Bitcoin, recently disclosed its latest purchase activity between April 28 and May 4. During this period, the firm acquired 1,895 BTC at an average price of $95,167 per coin.

This strategic buy-in increased its total holdings to over 550,000 Bitcoin, purchased for more than $38 billion** cumulatively. At current valuations, the portfolio is now worth over **$57 billion, reflecting both substantial capital appreciation and long-term faith in Bitcoin’s store-of-value proposition.

Such consistent accumulation by major players sends a powerful signal to retail and mid-tier investors: confidence in Bitcoin’s fundamentals remains robust despite short-term volatility.

U.S. States Move Toward Government-Backed Crypto Reserves

Another bullish development comes from legislative advances within the United States. Recently, states like Arizona and New Hampshire have passed bills allowing state governments to explore establishing official cryptocurrency reserves.

While these initiatives are still in early stages and not yet implemented, they represent a pivotal shift in public-sector perception. Governments beginning to treat digital assets as legitimate treasury instruments could pave the way for wider regulatory clarity and mainstream financial integration.

This kind of policy evolution strengthens the narrative that Bitcoin is transitioning from speculative asset to institutional-grade investment.

👉 See how government adoption could reshape the future of digital finance.

A Historical Perspective: From First Breakthrough to Sustained Strength

Bitcoin first crossed the $100,000 threshold on **December 5, 2024**, marking a historic moment for decentralized finance. It later reached an all-time high near **$109,000** on the day of the U.S. presidential inauguration in January 2025—driven by optimism around pro-innovation policies.

However, subsequent concerns over protectionist trade measures led to a sharp correction. By early April, Bitcoin briefly fell below $80,000 as traders reacted to escalating tariff threats and regulatory scrutiny.

Now, its return above six figures suggests that market resilience has overcome earlier headwinds. The combination of macroeconomic stabilization, institutional support, and evolving policy frameworks has laid a foundation for sustained growth.

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Frequently Asked Questions (FAQ)

Q: What caused Bitcoin to rise above $100,000 again?
A: A mix of positive catalysts—including a U.S.-UK trade agreement reducing market tension, strong institutional buying, and supportive state-level legislation—helped restore investor confidence and drive prices upward.

Q: Is this rally sustainable?
A: While short-term volatility is always possible, the underlying fundamentals appear stronger than during previous rallies. Continued institutional accumulation and growing regulatory clarity suggest longer-term sustainability.

Q: Why are U.S. states considering crypto reserves?
A: Some state governments see digital assets as a way to diversify public finances and attract tech-driven economic growth. These moves reflect a broader trend toward recognizing crypto as a legitimate financial instrument.

Q: How does Ethereum’s performance relate to Bitcoin’s price movement?
A: Ethereum often follows Bitcoin’s lead in bull markets. Its recent 20% surge indicates broad market participation and renewed interest in smart contract platforms and decentralized applications.

Q: Was Bitcoin really below $80,000 recently?
A: Yes—due to concerns over trade policy impacts in early April, Bitcoin dipped briefly below $80,000 before recovering steadily through May.

Q: Could Bitcoin reach $150,000 or higher in 2025?
A: While no price prediction is guaranteed, many analysts believe that if adoption continues at its current pace—especially among institutions and governments—new all-time highs are within reach.

👉 Get expert insights on where Bitcoin might go next in 2025.