Bitcoin edges closer to $100K for the first time since February, trading at $99,300 on May 8. The rally is supported by increasing institutional inflows, declining derivatives risk, and better macro signals in global markets.
Spot Bitcoin ETFs have attracted $4.41 billion since late March. This inflow reflects renewed institutional demand and trust in digital assets.
While this was happening, liquidations in the derivatives market decreased 7% over a period of 24 hours, with the majority falling on short positions. The decrease in forced selling contributes to a healthier trading conditions and maintains strong price action. Ethereum also surged through $1,900 to an all-time monthly high. Altcoins like PEPE, BCH, and others trailed suit with over 10% gains. The capitalization of the crypto market gained over $100 billion overnight.
Investors Seek Macro As Trade Negotiations Loom
The recent rebound comes as investors expect a re-escalation in US-China trade negotiations, which are set to resume this weekend. Optimism for a breakthrough has brightened sentiment across both equity and crypto markets.
Moreover, the US Federal Reserve also kept interest rates unchanged at 4.25–4.50%, assuaging fears of further tightening. This move, along with weaker inflation data, has pulled capital back to risk assets such as Bitcoin. The Fear & Greed Index is also optimistic once again, and risk appetite is increasing in financial markets. Investors now perceive Bitcoin as a hedge against volatility in conventional markets.
BTC Outlook: Caution Remains Despite Price Appreciation
Although the momentum is robust, there are still prudent analysts. Coinotag reminds us that past volatility, like the January drop after the DeepSeek AI launch, is still fresh in traders’ minds.
If US-China negotiations collapse, or the Fed changes heart, Bitcoin can reverse to the $96,400 resistance level. But if ETF inflows keep pouring in and macro conditions remain, a sustained break above $100K can set the stage for fresh all-time highs.
