Why Bitcoin is Rising - Top Reasons

Bitcoin has returned to levels of late January 2025. The cryptocurrency is trading above $100,000 again. BTC is rising due to a combination of positive factors.

We explain why Bitcoin has risen and what initiatives can support the positive dynamics of cryptocurrency.

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What is happening with Bitcoin

On May 8, 2025, Bitcoin once again broke through the psychologically important level of $100,000. The maximum BTC in 24 hours, according to CoinMarketCap, was recorded at $103,969. The last time the cryptocurrency was at such a level was on January 31, 2025. After updating the local maximum, Bitcoin corrected to $102,740.

Why Bitcoin is rising

Bitcoin has managed to return to levels above $100,000 amid another Fed rate decision. Despite the regulator's decision to keep the key rate at the same level, crypto reacted to the news with a rise. Investors believe that against the backdrop of signs of recession in the US, the Fed will be forced to switch to easing monetary policy. Printing and injecting new dollars into the economy may be necessary to support the market in tough times. Part of the freshly printed bills, as observations show, is likely to settle in crypto. As a result, the actions of the Fed may lead to an increase in the digital asset market.

The positive outlook is also boosted by expectations of a swift transition by the Fed to lowering the key interest rate. This initiative is being lobbied by U.S. President Donald Trump. Lowering the key rate could enhance the investment appeal of high-risk assets such as cryptocurrency.

There are other positive news for the cryptocurrency market:

• The U.S. Office of the Comptroller of the Currency (OCC) officially stated that banks under its jurisdiction can trade cryptocurrency "responsibly" and transfer asset custody operations to third-party providers.
• The Federal Deposit Insurance Corporation (FDIC) has released guidelines allowing banks to hold cryptocurrency assets and offer related services to clients.
• Laws in a number of states (, for example, Missouri ) now allow authorities to create strategic Bit reserves and even abolish capital gains tax.
• Market participants are recording a significant influx of funds into Bitcoin-based exchange-traded funds.
• The growing interest in cryptocurrency as a tool for saving savings during periods of economic instability.
• The decrease in market tension against the backdrop of a number of agreements between the USA and other countries within the framework of the trade war unleashed by Trump. For example, the market reacted positively to the news of possible trade deals between the USA and the UK ( including discussions on the removal of 10% tariffs ) and upcoming negotiations with China.

Let us remind you that Peter Brandt, a popular analyst in the crypto community, believes that the rise of Bitcoin will only stop at the end of summer or the beginning of autumn 2025.

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