Why is Bitcoin's Price Rising Today?

By: decrypt|2025/05/09 09:15:01
0
Share
copy
Why is Bitcoin's Price Rising Today? Bitcoin surged past $103,000 as traders bet on Fed rate cuts, welcomed signs of institutional inflows, and reacted to easing trade tensions. In brief CME FedWatch data shows a 70% chance of a July rate cut, with 95% odds of easing by October, as markets front-run the Fed despite no move this week. Ethereum rallied 20% as altcoins broadly outperformed, while Bitcoin breached the $100K milestone, triggering fresh upside positioning. Trump’s U.K. trade pact boosted sentiment across risk assets, though economists called the agreement symbolic and economically limited. Decrypt’s Art, Fashion, and Entertainment Hub. Bitcoin rallied sharply on Thursday, alongside major altcoins and equities, as traders responded to growing expectations of interest rate cuts, early signs of renewed institutional demand, and a tentative U.S.-U.K. trade agreement that injected fresh optimism into global markets. The move came despite the Federal Reserve’s decision Wednesday to leave interest rates unchanged. While Fed Chair 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% probability of at least one cut by October. President Donald Trump intensified his criticism of Powell, calling him a “fool” on Thursday, claiming that cutting rates “would be like jet fuel” for the economy. Bitcoin traded as high as $103,460 early Friday in Asia, rising more than 6% over 24 hours. Ethereum is leading altcoins, up 20%, after breaching $2,200 for the first time since March. Solana and Cardano each rose more than 10%, while gold fell over 2%, reflecting a rotation from traditional hedges into higher-risk assets. “The flow indicates growing optimism as traders position for further upside,” QCP Capital wrote in a note , pointing to strong demand for call options expiring in May and June. However, the firm cautioned that price confirmation was still needed: “Until Bitcoin can close above the $100,000 handle on the daily, we see limited reward in chasing momentum at current levels.” With Bitcoin now firmly above that coveted milestone, traders are repositioning for further potential upside as optimism for more trade deals between the U.S. and its allies grows. On Thursday, President Trump announced what he described as a “major” trade deal with the U.K.—his first since returning to office. The agreement includes minor tariff adjustments and quota relief for British auto and steel exports, but analysts were skeptical about its economic impact. “The economic reality of this is basically... very, very small,” economist Justin Wolfers told Australia’s public broadcaster, the ABC . Tapas Strickland, Head of Market Economics from one of the country’s big four banks, NAB, described the U.K.-U.S. trade pact as “only a framework.” Still, markets welcomed the prospect of easing trade tensions. U.S. equity indexes posted solid gains, with the S&P 500 up 0.6% and the Nasdaq rising 1.1%. The FTSE 100 slipped 0.3%, reflecting more muted sentiment in London. ARK Invest’s April report pointed to a strengthening base case for Bitcoin, citing 29,800 BTC in net inflows to U.S. spot ETFs—the highest since November—and a decline in exchange balances to 14%, the lowest level since 2018. “This price action strengthens the view that Bitcoin should be considered a safe-haven asset amid global uncertainty,” the firm said. Daily Debrief Newsletter

You may also like

Reflections and Confusions of a Crypto VC

As the tide recedes, crypto VCs face a life-and-death test. The bubble of blind token overvaluation has been burst, and the industry's valuation logic is returning to real revenue. In the face of increasingly savvy retail investors and dried-up liquidity, VCs that can only throw money around are des...

Morning News | Ether Machine terminates $1.6 billion SPAC deal; SpaceX holds approximately $603 million in Bitcoin; Michael Saylor releases Bitcoin Tracker information again

Overview of Important Market Events on April 12

Crypto ETF Weekly | Last week, the net inflow for Bitcoin spot ETFs in the U.S. was $816 million; the net inflow for Ethereum spot ETFs in the U.S. was $187 million

Bitwise updates Hyperliquid ETF application documents, with the trading code set as BHYP.

This week's news preview | The U.S. will release March PPI data; French President Macron will give a speech at Paris Blockchain Week

Highlights of the week from April 13 to April 19.

How Do Digital Assets Self-Custody? OpenAI Cofounder's 15-Step Checklist

It's time to outsource our memory to AI

Circle Product Management Director: The Future of Cross-Chain: Building an Interoperability Technology Stack for Internet Financial Systems

Building on the foundation laid by CCTP, Circle is increasing its investment in three main areas: settlement acceleration, broader asset interoperability, and orchestration, making cross-chain value flow more seamless and efficient, and achieving internet-level usability.

Popular coins

Latest Crypto News

Read more