On May 9, 2025, Bitcoin (BTC) price strongly broke through $104,000, with a market cap exceeding $2.054 trillion, officially entering the global top five assets.
Meanwhile, Ethereum (ETH) saw a daily increase of 22%, breaking through $2,200, driving the entire crypto market up.
👉 The five core driving factors of this round of increase
1. Improved policy environment: Eased tariffs and favorable regulations
The Trump administration recently released positive signals on tariff policies, a trade agreement between the UK and US was reached, and expectations for US-China negotiations have risen, leading to an increase in market risk appetite.
Multiple states in the US are promoting Bitcoin strategic reserve bills, leading to a surge in institutional allocation demand.
2. Expectations for Fed rate cuts are rising
Although the May FOMC meeting kept interest rates unchanged, Powell hinted at a possible shift towards easing policies in the future, with the market betting on a 68% chance of a rate cut in September.
Expectations for liquidity easing are driving accelerated capital inflows into the crypto market.
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3. Institutional funds are strongly flowing back
The outflow trend of Bitcoin ETFs has ended, with a total net inflow of $40.207 billion on May 4, nearing historical highs.
MicroStrategy announced an $84 billion BTC accumulation plan, with companies like Metaplanet and Jetking continuously increasing their positions.
4. On-chain data verifies bull market signals
Bitcoin whales (holders of 10-10,000 BTC) have increased their holdings by 81,338 BTC below $100,000, with their share rising by 0.61%.
The stock of BTC on exchanges continues to decline, with long-term holders reaching a new high.
5. Technological upgrades and ecological expansion
The adoption rate of Bitcoin's Lightning Network is increasing, significantly reducing transaction costs.
The Ethereum Layer 2 ecosystem (such as Arbitrum) is booming, driving up ETH demand.
👉 Long-term value positioning of Bitcoin
The digital gold attribute is strengthened: Under global inflationary pressure, a fixed supply of 21 million coins makes it a core asset against inflation.
Institutional allocation is mainstreaming: Continuous buying by listed companies, state governments, and ETFs is shifting BTC from a speculative asset to a strategic reserve asset.
Global financial status enhancement: Market value surpasses traditional assets like silver and Tencent, entering the global top five assets.
👉 Risk warning
Despite the high market sentiment, investors should remain wary of short-term volatility risks:
The Fed's policy still has uncertainties; if economic data exceeds expectations, the pace of rate cuts may be delayed;
Bitcoin is prone to technical corrections near historical highs;
Altcoins are lacking momentum for upward movement, and caution is needed regarding capital rotation risks.
👉 Recommendations (for reference only)
Short term: Watch if BTC can hold above $100,000; if it retraces to the $95,000-$98,000 range, consider scaling in.
Long term: Accumulate core assets like BTC and ETH on dips, avoiding chasing MEME coins.
Risk control: Keep leverage within 3 times, and set dynamic stop-loss and take-profit levels.
Bitcoin's breakthrough marks a new phase for the crypto market, and investors should embrace opportunities while maintaining rationality and managing risks.
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