#CryptoComeback$BTC #TradeOfTheWeek
Why is the price of Bitcoin rising today?
The value of Bitcoin rose to over $103,000 as traders bet on a Federal Reserve rate cut, welcomed signs of institutional inflows, and responded to easing trade tensions.
In summary
CME FedWatch data shows a 70% chance of a rate cut in July, with 95% odds of easing by October, as markets are ahead of the Federal Reserve despite it taking no action this week.
Ethereum rose by 20% as alternative coins broadly outperformed, while Bitcoin broke the $100,000 barrier, leading to new upward movements.
The trade agreement that Trump made with the UK has boosted investor sentiment in risky assets, although economists described the agreement as symbolic and economically limited.
The value of Bitcoin sharply increased on Thursday, alongside major alternative coins and stocks, as traders reacted to growing expectations for rate cuts, early signs of renewed institutional demand, and the temporary trade agreement between the U.S. and the U.K. that injected new optimism into global markets.
This move came despite the U.S. Federal Reserve's decision on Wednesday to keep interest rates unchanged.
While Federal Reserve Chairman Jerome Powell declined to commit to a timeline for potential easing, futures markets are already pricing in a 70% chance of a rate cut in July, with CME's FedWatch tool showing a 95% chance of at least one cut by October.
President Donald Trump intensified his criticism of Powell, calling him a "fool" on Thursday, claiming that cutting interest rates "would be like jet fuel" for the economy.
The price of Bitcoin reached $103,460 at the start of trading on Friday in Asia, rising by more than 6% in 24 hours. Ethereum leads the altcoins, up 20%, after surpassing $2,200 for the first time since March.
President Donald Trump. Photo: Shutterstock
Trump says the Federal Reserve Chairman is "not in my favor" with the rise of the cryptocurrency market
The value of Bitcoin and other cryptocurrencies rose on Thursday, along with other high-risk assets, supported by the trade agreement between the U.S. and the U.K., despite President Donald Trump's recent criticisms of Federal Reserve Chairman Jerome Powell for lowering interest rates. The largest cryptocurrency by market capitalization surpassed $100,000 for the first time since February on Thursday morning New York time. Bitcoin's value recently exceeded $101,289 after jumping more than 5% in the past 24 hours, according to data from CoinGecko, a cryptocurrency market data platform. On Wednesday...
May 8, 2025
Both Solana and Cardano have risen by more than 10%, while gold has fallen by more than 2%, reflecting the shift from traditional hedges to higher-risk assets.
QCP Capital wrote in a note: "The flow indicates increasing optimism as traders prepare for further upside," noting strong demand for call options expiring in May and June.
However, the company warned that price confirmation is still necessary: "Until Bitcoin can close above the $100,000 level daily, we see limited reward in chasing momentum at current levels."
With the price of Bitcoin now strongly surpassing this desired level, traders are repositioning themselves in anticipation of further potential rises as optimism increases regarding more trade deals between the United States and its allies.
Both Solana and Cardano have risen by more than 10%, while gold has fallen by more than 2%, reflecting the shift from traditional hedges to higher-risk assets.
QCP Capital wrote in a note: "The flow indicates increasing optimism as traders prepare for further upside," noting strong demand for call options expiring in May and June.
However, the company warned that price confirmation is still necessary: "Until Bitcoin can close above the $100,000 level daily, we see limited reward in chasing momentum at current levels."
With the price of Bitcoin now strongly surpassing this desired level, traders are repositioning themselves in anticipation of further potential rises as optimism increases regarding more trade deals between the United States and its allies.
