Bitcoin surged past $103,000 on May 9, 2025, driven by traders' growing expectations of interest rate cuts by the Federal Reserve, signs of renewed institutional demand, and optimism surrounding a U.S.-U.K. trade agreement. Despite the Fed's decision to maintain current interest rates, futures markets show a 70% chance of a rate cut in July and a 95% probability by October. Bitcoin's rally coincided with a 20% rise in Ethereum and a broader outperformance of altcoins, indicating a positive market sentiment towards riskier assets. Trump's announcement of a trade deal with the U.K. was met with skepticism regarding its economic impact, yet it improved market sentiment overall. Analysts note that demand for call options is growing, suggesting optimism for further price increases. Dogecoin also saw significant gains, jumping 14% as Bitcoin reclaimed its position above $100,000, demonstrating a shift from traditional assets to cryptocurrencies amidst current market conditions.

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