Bitcoin Surges Past $101,000 as Trade Deal Optimism Fuels Crypto Rally
Bitcoin $BTC soared past $101,000 on May 8, 2025, climbing from an overnight low of $96,000, driven by renewed optimism in global trade. The rally, which saw a 5% gain in 24 hours, was sparked by a U.S.-U.K. trade deal announced by President Trump and Prime Minister Starmer, maintaining a 10% U.S. tariff while Britain lowered its tariffs to 1.8%. Upcoming U.S.-China talks in Switzerland further boosted sentiment, with investors eyeing more favorable trade policies. Ethereum $ETH and Dogecoin $DOGE also surged, gaining 13.8% and 10.8%, respectively, as of 2:30 p.m. ET on Thursday.
The Federal Reserve’s decision to hold interest rates at 4.25% to 4.5% supported this risk-on environment, benefiting crypto alongside global equities. Ethereum’s blockchain upgrades and Dogecoin’s $6.9 million DogeOS project added fuel to their rallies, enhancing utility and speculative appeal. Institutional interest remains strong, with $5.3 billion in Bitcoin ETF inflows over the past three weeks, pushing BTC’s market dominance to 70%—its highest since January 2021. Crypto stocks like Coinbase and Riot Platforms also rose 6% and 7%, respectively.
However, traders should remain cautious. Bitcoin faces resistance at its January high of $109,350, and a failure to break this could keep it range-bound between $70,000 and $109,000 for weeks. The U.S.-China talks could introduce volatility, with negative outcomes risking liquidations. For trading, consider profit-taking on BTC near $109,350, while ETH’s momentum could target $2,500. DOGE’s gains are speculative—use tight stop-losses. Despite the bullish wave, the crypto market’s sensitivity to geopolitical risks calls for careful navigation. Stay updated on trade developments and ETF flows to gauge the next move in this dynamic market.
