*Bitcoin (#BTC ) Crosses $104,000: What’s Driving the Surge?** *Date: May 9, 2025*
Bitcoin (#BTC☀ ), the world’s leading cryptocurrency, has surged past the $104,000 mark today, reaching its highest level since February 2025. The current price stands at approximately **$103,764**, showing a **4.5% gain** in the last 24 hours. This rally marks a significant milestone for Bitcoin and indicates strong market momentum driven by multiple global factors.
### Key Reasons Behind the Rally
1.
**US-UK Trade Deal Boosts Global Markets** A newly signed trade agreement between the United States and the United Kingdom has injected optimism into global financial markets. This has encouraged investors to move into riskier assets like Bitcoin, helping drive up its price.
2.
**Federal Reserve Rate Cut Expectations** Investors are increasingly expecting the Federal Reserve to cut interest rates in the coming months. Lower interest rates make traditional assets less attractive and increase the appeal of alternative investments like cryptocurrencies.
3.
**Massive Institutional Inflows** Bitcoin ETFs and other institutional investment products have seen record inflows this week, totaling over **$40 billion**. This shows growing confidence among large-scale investors in Bitcoin’s long-term potential.
4.
**Short Squeeze and Liquidations** The sudden price increase has triggered over **$400 million** in short position liquidations. This type of market movement, known as a short squeeze, adds further upward pressure on the price.
### Technical Outlook
Market analysts suggest that Bitcoin may face resistance near the **$107,000** level. If it breaks through, the next major target could be around **$120,000**. On the downside, Bitcoin is expected to find support at **$100,000**, with further support at **$92,000** if a pullback occurs.
### Long-Term Prospects
In March 2025, President Trump announced the creation of a **Strategic Bitcoin Reserve**, signaling strong governmental interest in digital assets. This move has been widely interpreted as a bullish sign for Bitcoin and has contributed to the current positive sentiment in the market.
# Final Thoughts of #BTC
Bitcoin’s recent rise reflects a combination of favorable global developments, increased institutional interest, and positive market momentum. While the outlook remains optimistic, investors are advised to stay cautious of volatility and sudden price shifts.
