Bitcoin Strongly Breaks Through $96,000, Multiple Positive Factors Propel the Market Towards $100,000
May 7, 2025 Real-time News
Today, the price of Bitcoin continues its strong upward trend, jumping 3% during the Asian trading session, reaching a high of $96,400, just a step away from the historic $100,000 mark. This wave of market movement is driven by multiple positive factors, including the People's Bank of China's reserve requirement ratio cut and interest rate reduction to release liquidity, U.S.-China trade talks boosting market confidence, and the continuous influx of institutional funds.
Core Driving Factors
1. China’s Easing Policy Stimulates Risk Appetite
The People's Bank of China announced a 0.5 percentage point cut in the reserve requirement ratio, releasing hundreds of billions in liquidity, while simultaneously lowering policy interest rates and housing fund rates, aimed at stimulating economic recovery. This move has pushed Asian stock markets and commodities higher, with Bitcoin, as a high beta asset, responding rapidly, gaining over 3% on the day.
2. Institutional Funds Accelerate Deployment
BlackRock's Bitcoin ETF (IBIT) saw a net inflow of $36.72 million in a single day, with total holdings exceeding 614,000 BTC, valued at nearly $58 billion, becoming an important support in the market. Additionally, the Japanese listed company Metaplanet added 555 BTC through bond issuance, bringing its total holdings to 5,555 BTC, indicating a significant trend in corporate-level allocation.
3. Technical Breakthrough of Key Resistance
Bitcoin's price has stabilized above $95,000, with the $75,000-$95,000 range forming structural support. Technical analysts indicate that breaking through the $97,000 resistance will open the channel for a surge towards $100,000; should there be a pullback, $93,000 serves as a key support level.
Market Sentiment and Derivatives Signals
The options market shows strong bullish sentiment: Deribit data reveals that the open interest value of $300,000 call options expiring at the end of June reaches $484 million, indicating investors' bets on mid to long-term upward trends.
- Surge in Leverage Trading: XBIT platform data shows a year-on-year increase of 200% in Bitcoin leverage trading volume, with institutions capturing short-term volatility opportunities through structured strategies (spot + leverage).
Risk Warning
Despite market optimism, the upcoming interest rate decision by the Federal Reserve may trigger volatility. The current market expects rates to remain unchanged at 4.25%-4.50%, but if “hawkish” signals are released, it may lead to price corrections. Furthermore, on-chain data shows an increase in activity from long-term holders, particularly ancient whales, which warrants caution regarding profit-taking.
