⬛ Bitcoin Crosses $100,000
On May 9, 2025, Bitcoin surged above $100,000, exciting the crypto community.
It jumped from $97,200 to a high of $103,900 within hours.
⬛ Why Did Bitcoin Pump?
➡️ China Injects $100B Liquidity
• China’s central bank cut lending rates by 15 bps
• Reduced bank reserves by 0.5%
• Released $100 billion liquidity to support economy
• BTC surged right after this announcement
➡️ U.S. Federal Reserve Holds Rates
• Fed kept rates at 5.25% on May 1
• No more rate hikes (for now) as inflation cools
• Boosts confidence in risk assets like Bitcoin
➡️ U.S.–China Relations Improve
• Diplomats met on May 2
• Formal trade talks start May 16
• Expected to ease capital & trade tensions
⬛ But Caution Signs Appear
➡️ Negative Coinbase Pro Premium
• U.S. buyers paid less than global BTC price
• First negative premium in 6 weeks — weak U.S. demand?
➡️ Record-High Institutional Shorts
• Hedge funds increased bearish bets on BTC
• Looks similar to setups before past short squeezes
➡️ Thin Liquidity Risk (Golden Week)
• Asia’s markets slow from May 10-16
• Low volume can amplify price swings (up or down)
⬛ Bulls vs Bears: The Battle
➡️ Bulls Believe:
• China’s liquidity boost = more upside
• U.S.–China trade talks = more capital flows
• Record shorts could trigger a violent short squeeze
➡️ Bears Warn:
• Negative premium = weak U.S. buying
• Heavy shorts show lack of confidence
• If policies disappoint, BTC could correct sharply
• Low volume can exaggerate downside risk
⬛ Key Things to Watch
• Will shorts be forced to cover?
• Post-Golden Week volume surge?
• Beijing’s next moves & Fed updates
• U.S.–China trade negotiations outcome
• FOMO vs Fear — which wins?
⬛ Current Price: $103,312 (-0.65%)
⬛ Watch for potential push towards $120,000 — but stay cautious.