Bitcoin is trading above the significant $100,000 mark once again. After experiencing a lengthy decline, the cryptocurrency has surpassed this threshold for the first time since January, and the crypto Fear and Greed Index indicates a return to greed.
This rise above $100,000 coincides with Bitcoin’s market dominance exceeding 60%. This is the first instance where Bitcoin has reached this price point while demonstrating such market control, suggesting that the current upward trend may be sustainable.
Bitcoin’s Return to $100,000: A Shift in Market Dynamics
The resurgence of Bitcoin above $100,000 has invigorated the wider cryptocurrency market, which had seen several weeks of price stagnation. After a prolonged period of correction and stability, Bitcoin has successfully overcome various resistance levels recently, although more hurdles remain before it can achieve new records beyond $109,000.
While it might seem that Spot Bitcoin ETFs are the driving force behind this rally, the data tells a different story. ETF inflows have averaged only $129 million over the past two days, a stark contrast to the $700 million-plus daily inflows witnessed during the last surge in January. The current price increase appears to be fueled by a combination of macroeconomic factors and specific market trends rather than solely ETF activity.
A key factor boosting market sentiment is the recent U.S.-U.K. trade agreement announced on May 8, 2025. This deal keeps the existing 10% U.S. tariff on British goods while reducing U.K. tariffs to 1.8% and enhances access to American products. As fears of escalating trade tensions diminish, capital is once again flowing into riskier assets like Bitcoin, which had earlier plummeted to $74,000 in early April.
Can BTC’s Surge Above $100,000 Be Maintained?
Unlike previous spikes beyond the six-figure mark, this rally is occurring under distinctly different market circumstances. A notable difference is Bitcoin’s increased dominance, which is now over 60%.
This high level of dominance suggests a stronger support system for the current price trends. Analyst Rekt Capital has noted the potential for Bitcoin dominance to rise to 71% in the future.
On-chain metrics bolster the case for the sustainability of this rally. A decline in exchange balances has supported the upward trend. This trend aligns with inflows of stablecoins to exchanges, which typically signal increased buying activity.
As of now, Bitcoin is trading at $102,900, having reached an intraday high of $103,890. This places it 5.7% away from reclaiming its January peak of $108,780. According to data from Glassnode, approximately 3 million BTC have returned to profitability since April’s low of $74,000.
