Bitcoin hits 100k again, reaching a high of $100,500 on some exchanges before settling just below this significant level. Are we throwing another 100k party? This movement indicates strong market momentum, though the psychological barrier of $100K remains a point of contention.
Macro Events: Macro Events Driving the Momentum
It’s not just charts that matter — global events are helping too.
One of the biggest recent catalysts? Donald Trump’s tariff announcements. His latest statements on trade restrictions with China and Europe have stirred fear in traditional markets. As always, Bitcoin shines during uncertainty. Investors are looking for safe havens again — and BTC is leading the charge.
Related: $TRUMP coin is making moves as well.
On May 7, 2025, the Federal Reserve decided to keep interest rates steady at 4.25%–4.5%, despite mounting pressure from President Trump to cut them. Fed Chair Jerome Powell emphasized a cautious approach, citing uncertainties stemming from ongoing trade tensions and tariff policies. He stated, “We don’t have to be in a hurry,” highlighting the need to assess the economic impact of these factors before making policy changes.
The Fed’s decision reflects concerns about rising inflation and potential economic slowdown due to the administration’s tariff strategies. This cautious stance has influenced investor behavior, with many turning to assets like Bitcoin as a hedge against economic uncertainty.
Also, with inflation still lingering and the U.S. dollar facing pressure, more money is flowing into hard assets. Gold has hit all-time highs, and Bitcoin is tagging along. The “digital gold” narrative is playing out once more.
Meanwhile, the approval of multiple Bitcoin ETFs has opened the floodgates for institutional money. BlackRock, Fidelity, and others continue to attract billions in inflows — and much of that capital is driving this new push above $100K.
Bitcoin 100k Again Technical Analysis
Bitcoin’s recent price action shows a strong upward trend, with the price tapping $100,500 before experiencing a slight pullback. Technical indicators suggest bullish momentum, but the market is closely watching to see if Bitcoin can establish support above the $100K level.
The Relative Strength Index (RSI) remains in a healthy range, indicating that the asset is not yet overbought. Moving averages are trending upwards, supporting the bullish outlook. However, traders should remain cautious, as the market could experience volatility around this key psychological level.
Potential Upside: Eyes on New Highs
If Bitcoin can solidify its position above $100K, the next resistance levels to watch are $110K and $120K. Breaking through these could pave the way for a move towards the previous all-time high of $109K and beyond.
Market sentiment remains positive, bolstered by institutional interest and macroeconomic factors favoring alternative assets. Analysts suggest that sustained momentum could lead to new record highs in the coming months.
Potential Downside: Navigating Volatility
Despite the bullish outlook, Bitcoin’s path forward is not without risks. Failure to maintain support above $100K could lead to a retracement to support levels around $92K or even $88K.
External factors, such as unfavorable regulatory developments or shifts in macroeconomic conditions, could also impact Bitcoin’s price trajectory. Investors should remain vigilant and consider risk management strategies to navigate potential volatility.
Altcoins Riding the Wave: Top Performers This Week
As Bitcoin approaches the $100K milestone, several altcoins have posted impressive gains:
- PEPE: Up 5.11%, benefiting from renewed interest in meme coins.
- Solana (SOL): Gained 4.63%, driven by increased activity in its ecosystem.
- Stacks (STX): Rose 8.16%, as Bitcoin Layer 2 solutions gain traction.
- Toncoin (TON): Increased by 2.14%, following developments in its network.
- Injective (INJ): Up 10.27%, fueled by DeFi sector growth.
- FLOKI: Surged 9.33%, amid a resurgence in meme coin popularity.
These movements suggest a broader market optimism, with investors exploring opportunities beyond Bitcoin.
Final Thoughts: The Road Ahead
Bitcoin’s reaching 100K again underscores the dynamic nature of the cryptocurrency market. While the asset shows strong bullish tendencies, investors should remain aware of potential volatility and external factors influencing the market.
As always, staying informed and employing sound risk management practices are key to navigating the evolving landscape of digital assets.
If you enjoyed this blog, check out our recent blog about Ethereum’s price.
As always, don’t forget to claim your bonus below on Bybit. See you next time!
