Why Is Crypto Up Today? Three Reasons For Bitcoin’s Rise To $103k

Bitcoin has surged to $103,768.26 as of 9 May 2025, recording a 0.50% gain in the past 24 hours. The cryptocurrency market is enjoying significant upward momentum, with BTC firmly holding above the critical $100,000 threshold.

In the last 24 hours, the crypto market capitalization has risen by over 3%, now over $3trillion. 

Here are the three key factors driving this price rally. 

Record ETF inflows resume

Bitcoin Exchange Traded Funds (ETFs) have seen a notable resurgence in positive inflows, as reflected in recent ETF flow data. After experiencing several days of outflows in early May, the trend reversed sharply, with strong inflows recorded over the past 24 hours.

The latest data shows substantial green inflows, particularly on 8 May, continuing the positive momentum seen throughout April. During that month, multiple days recorded inflows exceeding $600m, showing sustained institutional demand.

This renewed confidence among institutional investors is providing significant and steady buying pressure, helping Bitcoin maintain its position well above the $100,000 mark.

Technical indicators signal continued strength

Bitcoin’s technical setup remains decisively bullish, with multiple indicators confirming the strength of the current uptrend:

• The Relative Strength Index (RSI) stands at 76.14, indicating overbought conditions. While this level typically suggests a potential pullback in strong bull markets, RSI readings can remain elevated for extended periods as buyers dominate the market.
• The MACD (Moving Average Convergence Divergence) indicator shows significant positive momentum, with a reading of 612.67. The MACD line continues to trend above the signal line, forming a classic bullish configuration that suggests upward momentum could persist.

Bitcoin’s price chart also confirms the bullish narrative. The cryptocurrency has been in a sustained uptrend since mid-April, forming higher lows and higher highs. After consolidating between $80,000 and $90,000 for much of April, Bitcoin decisively broke through resistance levels in early May, setting the stage for this latest rally.

Macroeconomic environment turns favorable

The broader macroeconomic landscape has shifted in Bitcoin’s favor in recent weeks, creating additional tailwinds for crypto markets.

The Federal Reserve has signaled a potentially more accommodative stance on interest rates, holding the benchmark rate steady between 4.25% and 4.5% amid growing economic uncertainty. In its latest statement, the FOMC acknowledged that

“uncertainty about the economic outlook has increased further” and noted “the risks of higher unemployment and elevated inflation have risen.”

This dovish tone has encouraged investors to seek alternative assets like Bitcoin, which is often viewed as a hedge against currency debasement and economic instability.

Market outlook: Can Bitcoin go higher?

While Bitcoin has already posted impressive gains in 2025, market analysts believe there could be more room for upside. Some forecasts project that BTC could reach $120,000 by mid-2025, driven by:

• Shrinking available supply on exchanges
• Continued institutional accumulation through ETF products
• A favorable macroeconomic environment

However, traders should remain mindful of potential short-term corrections. The elevated RSI levels suggest Bitcoin may experience some profit-taking or temporary pullbacks despite the broader bullish trend.

Final thoughts

The combination of record ETF inflows, strong technical indicators, and a supportive macroeconomic backdrop continues to fuel Bitcoin’s rise. With Bitcoin now firmly above the $100,000 level, the question isn’t whether the rally will continue but how far it might go.

As always, investors should closely monitor upcoming macroeconomic developments and market signals to navigate the space effectively. For now, Bitcoin’s climb shows no signs of slowing down, and $103,000 may be another stepping stone on the way to new all-time highs.