Bitcoin returns to $100,000, bullish sentiment returns strongly

On May 8, 2025, Bitcoin shocked the market again. According to Coingecko data, at 23:22 Beijing time, the price of Bitcoin (BTC) broke through $100,000, reaching $100,530, up 4.2% from the day's low of $95,967. This is the third time in Bitcoin's history that it has broken through the six-digit mark, following December 2024 and January 2025.Unlike the previous two times, this breakthrough is accompanied by a stronger market dominance. Data shows that Bitcoin currently accounts for more than 60% of the total market value of cryptocurrencies, a nearly four-year high, indicating that investors' confidence in BTC far exceeds that of altcoins, which are facing relatively cold market sentiment.Bitcoin dominance rises, market structure changesThe increase in Bitcoin's dominance is not accidental. When it first broke through $100,000 in December 2024, BTC's market value accounted for only 52%; it rose to 54% in January 2025; and this time it rose to more than 60%, which is close to the level at the beginning of 2021, when the price of Bitcoin was still at $36,000 and was heading towards the previous historical high of $60,000.Rising dominance usually means that funds are more concentrated in Bitcoin, the "blue chip among crypto assets", reflecting that investors prefer safe-haven assets amid the current geopolitical uncertainty and financial market turmoil.Institutional funds and political signals jointly drive the risePetr Kozyakov, CEO of Mercuryo, pointed out that Bitcoin's recent performance is "robust and strong", and it has been almost unaffected even in the face of geopolitical risks in Asia and the Middle East. He further emphasized: "Bitcoin has gradually established its position as a long-term store of value and economic hedging tool, just as gold has performed in the past year."This round of rise is not only supported by safe-haven demand, but also driven by multiple positive factors. Vincent Liu, chief investment officer of Kronos Research, analyzed that former US President Trump hinted through Truth Social on May 7 that he might reach an important trade agreement with the UK, which is widely regarded as a political catalyst for the rise of Bitcoin in the community.At the same time, the weakening of the US dollar, the decline in bond yields, and the strong return of institutional funds to the spot Bitcoin ETF also provide sufficient fuel for the rise. Data shows that in the past trading week, Bitcoin ETF attracted up to $1.8 billion in inflows.Short-term trends are still affected by macro dataDespite the high market sentiment and the crypto fear and greed index firmly in the "greed" area (currently 65), Vincent Liu also pointed out that there are still important variables that may affect the trend in the short term. In particular, the upcoming US federal budget data on May 12 and the consumer price index (CPI) on May 13 may change market expectations."If these macro data are strong and accompanied by progress in specific trade agreements, then Bitcoin is expected to truly stand firm at the $100,000 mark," Liu said.Next stop: $110,000?Ben Caselin, chief marketing officer of VALR, believes that it is "only a matter of time" for Bitcoin to break through $110,000. He pointed out that retail investors tend to enter the market at the end of the four-year cycle of cryptocurrencies, which will provide impetus for the possible macro top in the fourth quarter of 2025."If global crypto regulation continues to advance and Bitcoin strategic reserves are adopted by more institutions, it is likely to usher in long-term accelerated growth after 2025," Caselin added.Bitcoin once again stands at $100,000, symbolizing not only a breakthrough in price, but also an increase in its global financial influence. From political signals to institutional behavior to changes in market structure, this round of increases may indicate that Bitcoin's role in global asset allocation is gradually consolidating. The next key question is: how far can it go?