Bitcoin surged back above the $100,000 mark this week for the first time since February, reflecting a broader return of an appetite for risk in the markets. U.S. stocks also rallied today (5/8/2025), extending a rebound off April lows, as investors responded positively to news of a preliminary trade agreement between the U.S. and the U.K.
Crypto analysts note that renewed optimism across global markets has encouraged investors to re-enter riskier assets.
Bitcoin had previously reached an all-time high of $109,225 in January 2025, only to decline sharply in early April when tariff tensions escalated. While it has rebounded strongly, the cryptocurrency continues to behave like a high-beta asset—meaning it tends to move more dramatically than the broader market in both directions. Bitcoin still mirrors broader investor sentiment and has not fully decoupled from traditional financial markets – meaning it is still a correlated asset.
What’s also fueling this most recent rally is news out of Arizona and New Hampshire, where governors signed legislation allowing the establishment of state-held bitcoin reserves. While these states haven’t yet purchased bitcoin, the symbolic support has added momentum to bullish sentiment.
From a technical perspective, bitcoin faces resistance around $106,500 and support near $93,780. If prices hold above $101,000, analysts say a retest of the January high is possible. However, if momentum fades, a retreat toward the $80,000 range isn’t out of the question.
At Asti Financial, we understand that headlines like these can stir up both excitement and anxiety. It’s tempting to feel like you’re missing out when asset prices spike—but it’s worth remembering that volatility is the nature of speculative investments like bitcoin. While crypto may have a place in a diversified portfolio for some investors, we encourage clients to remain grounded in their long-term goals.
If you’re curious about how (or if) cryptocurrency fits into your overall financial plan, we’re here to help you evaluate it in a strategic and informed way—without the hype.
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