On May 8, 2025, Bitcoin Hits $98K Milestone, propelled by the Federal Reserve’s decision to keep interest rates steady at 4.25%–4.5%, as confirmed in its latest FOMC meeting. The unchanged rates, alongside optimism from Trump administration policies, triggered a 5.3% BTC surge in 24 hours, elevating its market cap to $1.94 trillion within a $3.2 trillion crypto market. Bitcoin reaches $98,000, reflecting strong investor confidence. This article examines the drivers of this rally, its implications, and future opportunities.
Why Bitcoin Hits $98K Milestone
Bitcoin Hits $98K Milestone as the Fed’s rate stability calmed market fears. The FOMC’s cautious approach, despite concerns over Trump’s proposed tariffs on Canada, Mexico, and China, provided a favorable backdrop for risk assets like BTC. Jerome Powell acknowledged potential inflationary pressures from tariffs, but the decision to hold rates steady fueled crypto enthusiasm. Online sentiment shows excitement, with many anticipating further gains.
Bitcoin surpasses $98K, bolstered by institutional adoption and pro-crypto policy signals, overcoming earlier volatility from tariff uncertainties.
Details of the Market Surge
Bitcoin Hits $98K Milestone, soaring from $92,000 to $98,000 in a single day, with trading volumes reaching $153 billion. The rally coincides with MicroStrategy’s inclusion in the Nasdaq 100, amplifying BTC exposure. Ethereum and Solana also gained 3.2% and 5.7%, respectively, reflecting broad market optimism. Industry discussions highlight BTC’s outperformance over altcoins, with Ethereum experiencing a slight decline recently.
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Bitcoin reaches $98,000, driven by 83% of holders in profit and expectations of a dovish Fed stance. The crypto market’s resilience underscores BTC’s growing mainstream appeal.
Implications for the Crypto Market
Bitcoin surpasses $98K, cementing its dominance in a volatile market. The Fed’s rate stability could sustain BTC’s momentum, particularly if inflationary pressures subside. However, Trump’s tariff policies may introduce uncertainty, as Powell noted. BTC’s 60% year-to-date gain outpaces altcoins, with Solana and BNB trailing.
Market insights suggest the rally could spur DeFi and ETF growth, with Nasdaq’s Bitcoin ETF options trading reaching significant daily volumes. Bitcoin reaches $98,000, paving the way for potential record highs.
Opportunities for Investors
The BTC surge presents investors with opportunities to leverage crypto growth. With Bitcoin surpassing $98K, long-term holders, including those from 2010 with substantial profits, showcase BTC’s potential. Institutional players like MicroStrategy continue to accumulate BTC, signaling robust confidence. The DeFi market, projected to expand 20% by 2030, benefits from BTC’s stability.
Online sentiment reflects investor enthusiasm, with some targeting a $100,000 mark. Bitcoin reaches $98,000, encouraging diversified crypto investments.
Challenges Facing the Rally
Bitcoin price fluctuations over the past 7 days, screenshot from CoinMarketCap at 09 AM on May 8, 2025.
Despite its strength, Bitcoin faces hurdles. Trump’s tariffs could fuel inflation, delaying Fed rate cuts and pressuring BTC. Altcoin underperformance, with Dogecoin and Cardano declining, may shift capital away from BTC. Community concerns about potential market corrections linger, given BTC’s recent volatility.
Market insights caution against profit-taking, as seen in prior BTC peaks. Bitcoin must overcome these risks to maintain its $98K momentum.
Looking Ahead for Bitcoin Hits $98K Milestone
As Bitcoin Hits $98K Milestone, the crypto market awaits the Fed’s next steps. Investors should monitor tariff impacts, while traders eye $100,000. With BTC driving blockchain innovation, Bitcoin surpasses $98K, setting the stage for a transformative crypto future.
