Source: Inkl
Bitcoin is close to reclaiming the $100,000 threshold after rallying on non-identical optimism in the U.S. Federal Reserve’s decision to pause interest rates and renewed optimism around global trade developments. The flagship cryptocurrency was trading near the $99,400 mark on Wednesday and tapped its previous record highs. Strengthened bullish sentiment across financial markets
Fed’s Steady Hand Generates Confidence
The U.S Federal Reserve, led by Chairman Jerome Powell, held steady on interest rates and kept them in the range of 4.25%–4.50%, exhibiting confidence in the American economy. This ignited optimism in investors, reflected in gains among traditional equities and digital assets.
Bitcoin reacted and increased by over 2.6 percent only hours after the announcement. As a result, the market cap was boosted to $1.96 trillion, and Bitcoin increased its foothold in crypto dominance. According to CoinMarketCap, the cryptocurrency had a 24-hour trading volume of $50 billion, trading between the swings of $95,829 to $99,406.
Analysts See Momentum Building
Experts believe the rally is likely to continue. “The Federal Reserve’s decision signals a continued focus on controlling inflation, reinforcing a tight monetary policy stance,” said Piyush Walke, a derivatives research analyst at Delta Exchange
Edul Patel, CEO and co-founder of crypto investment platform Mudrex, attributed the bullish trend to a favorable global backdrop. The Fed’s cautious tone, coupled with China’s recent liquidity-boosting measures, has created an ideal environment for cryptocurrencies
Bitcoin ETFs Experience Unprecedented Inflows
Bitcoin exchange-traded funds (ETFs) have shown that they are an evolutionary step toward Bitcoin becoming a normal financial asset, with the latest cumulative inflow reaching an all-time high of $40.62 billion, signaling the continued growth of institutional interest in the cryptocurrency.
Bitcoin is being viewed less as a speculative gamble and more as a reliable store of value.
Geopolitical Developments Provide More Enthusiasm
Adding to the insights of the markets were developments out of Washington D.C. U.S. President Donald Trump teased an announcement of a big trade agreement. In a post on May 7, Trump said that we have a “major trade deal” with a “big, and highly respected, country,” which The New York Times later confirmed to be the United Kingdom. The news of a successful trade agreement could further develop investor confidence.
Wider Market Has Positive Ripple Effect
The rally is not just limited to Bitcoin. Ethereum, the second-largest cryptocurrency by market cap, increased by 3.96% to $1,899.90. The altcoins Solana (SOL), Cardano (ADA), and Ripple (XRP), also gained value, which suggests a pivot to the positive for crypto investors.
The last time Bitcoin broke above the $100,000 milestone was on February 1, 2025, trailing excitement surrounding proposed tariffs impacting China, Canada, and Mexico, and its all-time high is $109,026.02 on January 20, 2025.
As the $100K milestone draws near once again, it’s becoming increasingly difficult to ignore Bitcoin for what it is: a legitimate financial asset.
