Why is Bitcoin Up Today? BTC Smashes Through $100k Ceiling as Bears Face $400M Wipeout
By: coin central|2025/05/09 17:15:02
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TLDRBitcoin price surged to nearly $104,000, reaching a three-month highThe rally followed Trump’s UK trade deal announcement and hints at potential China tariff reductionsAlmost $400 million in bearish BTC short positions were liquidated during the price surgeSpot Bitcoin ETFs have now received over $40 billion in total inflowsEthereum also rallied strongly, up 16.5% following its Pectra upgrade activationBitcoin extended its rally on Friday, pushing past the $100,000 mark to reach nearly $104,000. This price movement comes amid improved market sentiment following trade announcements from US President Donald Trump.The world’s largest cryptocurrency reached $103,885.4, its highest level in three months. It rose 4.1% to $102,762.8 by 01:30 ET (05:30 GMT).Bitcoin is now positioned for its third straight week of gains, continuing a rally that began in late April. This recent price surge has been well-timed with the overall improvement in risk appetite across markets.President Trump’s announcement of a trade deal with the UK served as a catalyst for the latest price movement. While the economic impact of the UK deal may be limited, Trump’s comments about potentially lowering tariffs on China boosted market sentiment.The positive outlook was further enhanced by Commerce Secretary Howard Lutnick’s statement that the US plans to announce dozens of trade deals in the coming month.Bitcoin (BTC) PriceMarket Impact and LiquidationsThe rapid price increase caught many traders off guard, particularly those holding bearish positions.Nearly $400 million in Bitcoin short positions were liquidated in the past 24 hours—the highest single-day total since at least November. This suggests that leverage was heavily weighted toward the bearish side.Only $22 million in long positions were wiped out during the same period, highlighting the significant imbalance in market positioning.The total market cap of all cryptocurrencies excluding Bitcoin surged by 10% to $1.14 trillion, reaching its highest level since March 6.#Bitcoin is set to continue its surge in the coming weeks Previous breakouts of same kind have resulted in gains of 63% to 143% over 9-26 weeks.How high do you think this $BTC surge will go? pic.twitter.com/uQlmEnjYX1— Trader Tardigrade (@TATrader_Alan) May 8, 2025ETF Milestone and Wider Market EffectsBitcoin’s rally coincided with a major milestone for spot Bitcoin ETFs, which have now accumulated over $40 billion in total inflows.These investment vehicles, approved earlier this year, have provided institutional investors with regulated exposure to Bitcoin.Cryptocurrency exchange Coinbase reported its first-quarter earnings on Thursday, showing a drop in profit that missed analyst expectations. Despite this, the company’s transaction revenue rose 17.3%, indicating its core retail trading business remains strong.Coinbase also announced plans to acquire crypto derivatives platform Deribit for $2.9 billion in cash and equity.Ethereum, the second-largest cryptocurrency, outperformed the broader market with a 16.5% rally to $2,209.41. This surge followed the activation of Ethereum’s Pectra upgrade, its most significant overhaul since the Merge in 2022.Other altcoins also posted strong gains, tracking Bitcoin’s upward movement as risk appetite improved across the cryptocurrency sector.US officials are preparing to meet their Chinese counterparts in Switzerland this weekend, which could further impact market sentiment depending on the outcome of trade discussions.A New York Post report suggested that Trump could reduce his China tariffs to 50% from 145%, representing a major de-escalation in the ongoing trade tensions between the two countries.Bitcoin’s price now sits firmly above the coveted $100,000 level, a milestone that many cryptocurrency enthusiasts have anticipated for years.The post Why is Bitcoin Up Today? BTC Smashes Through $100k Ceiling as Bears Face $400M Wipeout appeared first on CoinCentral.
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