Bitcoin Strongly Breaks Through $99,000, Aiming for the $100,000 Mark!

May 8, 2025 Real-Time Dispatch

In the early hours of today, the price of Bitcoin surged past $99,000, reaching a high of $99,500, setting a new high since December 2024, and is just one step away from the historic $100,000 threshold! The following are the core factors driving this round of increase and market dynamics analysis:

1. Macroeconomic Policies and Geopolitical Resonance

China's Eased Policies Intensified: The People's Bank of China announced a reserve requirement ratio cut and interest rate reduction on May 7 (a decrease of 0.5 percentage points in the reserve requirement ratio and a policy rate down to 1.4%), releasing hundreds of billions in liquidity, stimulating a rebound in risk appetite in Asian markets, with Bitcoin jumping 3% during the Asian trading hours.

Federal Reserve's 'Hawkish Pause': Although the Federal Reserve maintained interest rates at 4.25%-4.5%, market expectations for a rate cut in July have heated up; the strengthening dollar did not suppress Bitcoin's upward momentum, demonstrating its decoupling resilience from traditional assets.

Geopolitical Safe-Haven Demand: The escalation of conflict between India and Pakistan has increased the safe-haven attributes of gold and Bitcoin, but Bitcoin has benefited more from institutional speculation and short squeezes.

2. Influx of Institutional Funds and ETF Frenzy

Spot ETFs Continue to Attract Funds: On May 7, the net inflow for a single day was $142 million, with BlackRock's IBIT ETF accumulating a net inflow of over $44.2 billion, asset management scale reaching $58 billion, holding 597,000 BTC, accounting for 2.38% of Bitcoin's total supply.

Corporate Strategic Holdings: The Japanese listed company Metaplanet increased its holdings by 5,555 BTC, while Nasdaq company Thumzup plans to raise $500 million for Bitcoin acquisition, highlighting the trend of corporate-level allocation.

3. Technical Aspects and On-Chain Data Support

Key Resistance Breakthrough: Bitcoin has stabilized above all major moving averages (20-day, 50-day, 200-day), with a dense liquidity pool forming in the $97,000-$99,500 range, and a breakout could directly target $100,000.

On-Chain Health Signals: 88% of Bitcoin supply is in profit, the MVRV indicator has returned to its long-term average, and unrealized gains are resetting to build momentum for future increases.

Future Outlook: FOMO Sentiment May Ignite New Highs

If Bitcoin stabilizes above $100,000, it may trigger a rapid influx of retail and institutional funds, pushing the price towards $120,000. In the short term, attention should be paid to the details of Federal Reserve policies, Sino-U.S. economic and trade talks (May 9-12), and the technical resistance levels' dynamics.