Key Takeaways:
Bitcoin breaks above $100,000 for the first time since January 2025, reaching $101,075.
BTC market dominance crosses 60%, its highest since early 2021, signaling stronger investor confidence in Bitcoin over altcoins.
Macroeconomic factors, renewed institutional inflows, and geopolitical news drive the rally.
Bitcoin Hits $100,000 Milestone Again, Fueling Bullish Momentum
Bitcoin has reclaimed the $100,000 price level for the first time in nearly four months, reaching $101,075 on May 8 at 3:22 pm UTC, according to CoinGecko. The move represents a 4.2% increase from the day’s low of $95,967.
This marks the third instance Bitcoin has crossed six figures:
First on Dec. 5, 2024.
Again on Jan. 20, 2025, ahead of Donald Trump’s inauguration.
Most recently on May 8, 2025.
Bitcoin Market Dominance Surpasses 60%
Unlike the previous two breakouts, this latest surge coincides with Bitcoin’s market dominance rising above 60%, reflecting growing investor preference for BTC over altcoins. By comparison:
BTC dominance was 52% in December 2024.
Rose to 54% by January 2025.
Surged to 60%+ in May, levels last seen in early 2021 when Bitcoin was climbing toward $60,000.
This surge in dominance signals that altcoins may underperform in the near term, as capital flows consolidate around Bitcoin.
Institutional Flows and Political Factors Drive the Breakout
The rally follows a series of macroeconomic and political catalysts:
Spot Bitcoin ETFs have seen $1.8 billion in inflows over the past trading week.
Falling U.S. bond yields and a weakening dollar have added to Bitcoin’s appeal as a hedge.
U.S. President Donald Trump hinted at a major trade deal, likely with the U.K., which analysts believe may be driving market optimism.
“With gold also running good all year, there’s now a case for saying that Bitcoin may have proven itself as an economic hedge and a long-term store of value,” said Mercuryo CEO Petr Kozyakov.
Analysts Eye $110,000 as Next Target
According to Ben Caselin, CMO at VALR, retail investors are still largely on the sidelines. This means the current rally is primarily institutional, which could drive a continued uptrend.
“There is a good chance that Bitcoin will chart new highs north of $110,000 sooner rather than later,” Caselin stated, adding that Bitcoin could see a macro cycle top in Q4 2025.
Key Events Ahead: CPI, Budget Data May Influence Momentum
Vincent Liu, CIO at Kronos Research, cautioned that upcoming U.S. macro data could influence BTC’s ability to sustain this breakout:
U.S. Budget Data – May 12
Consumer Price Index (CPI) – May 13
“For the rally to sustain, the trade deal narrative will need to evolve into concrete progress,” Liu said.
Bitcoin’s return to $100K signals growing investor conviction and renewed institutional interest. With dominance surging and ETF inflows accelerating, the foundation appears strong for a potential breakout beyond $110,000, barring macroeconomic surprises.
