Bitcoin Surges 6% to $103K: What’s Driving the Bullish Momentum?

Portalkripto.com – Bitcoin has surged since late Thursday trading, May 9, 2025. The world’s largest cryptocurrency briefly topped $103,965, marking a 6% gain in the last 24 hours.

The rally is fueled by expectations of interest rate cuts from the Federal Reserve, rising institutional interest, and a new US-UK trade agreement that has sparked positive sentiment across global markets.

Ethereum followed suit with a 20% jump, trading above $2,200—its highest level since March 2025. Major altcoins like Solana and Cardano also posted double-digit gains of over 10%.

Rate Cut Hopes Fuel Market Optimism

While the Fed decided to keep interest rates unchanged at its Wednesday meeting, investors are increasingly confident that rate cuts are on the horizon. According to CME FedWatch, there’s a 70% probability of a rate cut by July, and a 95% chance of at least one cut before October.

President Donald Trump, in a Thursday statement, renewed his sharp criticism of Fed Chair Jerome Powell, calling him “stupid” and stressing that cutting rates would be “jet fuel for the economy.” “Powell doesn’t love me,” Trump quipped while announcing his new trade deal with the United Kingdom.

Risk Assets Rise, Gold Weakens

The crypto rally coincided with gains in US equities. In contrast, gold prices fell over 2%, indicating a shift in investor appetite from traditional safe-haven assets to higher-risk plays.

QCP Capital noted strong demand for Bitcoin call options expiring in May and June as a sign of bullish market sentiment. However, they cautioned against chasing the rally too aggressively.

“As long as Bitcoin hasn’t consistently closed above $100,000, there’s still a considerable risk of a pullback,” their note stated.

US-UK Trade Agreement Announced

Trump also unveiled a new trade agreement with the United Kingdom, calling it the “first big deal” since returning to office. The deal includes eased quotas and tariffs on British car and steel exports to the US. However, economists remain skeptical about its broader economic impact.

“The economic effect is quite minimal,” said Justin Wolfers, an economist at the University of Michigan, quoted by ABC.