8-5-2025 – Bitcoin has surged past the $99,000 threshold, edging tantalisingly close to the $100,000 milestone, a level that could ignite widespread investor enthusiasm. As of late Wednesday, the pioneering cryptocurrency was trading at $99,330, marking a robust 2.83% rise over the past 24 hours, with trading volumes soaring by nearly 50% to $47 billion. This upward trajectory follows a recent 10% correction from its January peak, yet the market’s optimism remains unshaken, buoyed by significant institutional and high-net-worth investor activity.
The cryptocurrency’s ascent is mirrored by a broader rally in the digital asset space. Ethereum, the second-largest cryptocurrency, climbed 4.26% to $1,904, while Solana gained 3.7%, reaching $151.61. Analysts suggest that breaching the $100,000 mark could trigger a surge of fear-of-missing-out (FOMO) among investors, both retail and institutional. Alex Thorn, a prominent crypto strategist, remarked, “Surpassing $100,000 isn’t merely a symbolic victory; it underscores Bitcoin’s growing legitimacy as a cornerstone of global investment portfolios.”
On-chain analytics from Glassnode reveal a striking trend: wallets holding between 10 and 10,000 BTC have amassed 81,338 BTC over the past six weeks, reflecting a renewed appetite among large-scale investors. Notably, the number of wallets containing over 1,000 BTC rose from 1,945 on 1 March to 2,006 by 7 May, the most significant 30-day increase this year. This accumulation echoes patterns observed in early 2024, which preceded Bitcoin’s prior record highs. Furthermore, Bitcoin’s realised capitalisation—a measure of total investment held—reached an unprecedented $890 billion, marking three consecutive weeks of record growth and signalling expectations of further price breakthroughs.
Institutional confidence is also evident in the performance of BlackRock’s spot Bitcoin exchange-traded fund (IBIT), which has attracted $6.96 billion in net inflows since January 2025. This influx has propelled IBIT past the SPDR Gold Trust (GLD), which recorded $6.5 billion in inflows, dropping to seventh place among funds. Eric Balchunas, a market analyst, noted that this shift highlights a growing preference for digital currencies over traditional safe-haven assets like gold, a trend that underscores Bitcoin’s evolving role in institutional portfolios.
Despite this bullish momentum, external factors have introduced volatility. In April, tariffs announced by President Donald Trump sparked a sell-off in riskier assets, including Bitcoin, as global trade tensions escalated. However, the cryptocurrency rebounded above $97,000 on 6 May, driven partly by short liquidations following news of resumed U.S.-China trade talks scheduled for 10 May. Meanwhile, the Federal Reserve’s decision on Wednesday to maintain its benchmark interest rate at 4.25%–4.5% aligned with market expectations. Fed Chair Jerome Powell cautioned that uncertainties surrounding Trump’s tariff policies persist, but traders, according to the CME FedWatch tool, now see a 76.8% likelihood of rates remaining unchanged in June, up from 69% the previous day.
Elsewhere, Ethereum’s Pectra upgrade, implemented on 7 May, introduced enhanced smart account features and improved scalability. However, market response has been muted, with ETH futures hovering at a subdued 3%, well below the neutral 5% threshold, suggesting limited enthusiasm among traders despite the technical advancements.
