The cryptocurrency market witnessed a strong upward movement on Thursday, with Bitcoin and most major altcoins posting significant gains. Market optimism surged following a series of macroeconomic developments and strategic industry moves that reignited investor confidence across digital assets.
At the time of writing, Bitcoin (BTC) climbed to $99,415, edging dangerously close to the psychologically significant $100,000 threshold. A successful breakout above this level could open the door for a retest of Bitcoin’s all-time high of $109,300, last seen during the 2024 bull run. The broader market momentum pushed the total crypto market capitalization above **$3.10 trillion**, signaling renewed risk appetite among traders and institutions alike.
Key Drivers Behind the Crypto Rally
Several interrelated factors contributed to today’s bullish surge. While no single event can fully explain the rally, a combination of favorable macroeconomic signals, geopolitical trade developments, and major industry acquisitions created the perfect storm for upward price action.
1. Federal Reserve’s Steady Interest Rates
The U.S. Federal Reserve held its benchmark interest rates steady at 4.25%–4.50%, as expected. Despite maintaining a hawkish tone, the central bank’s decision to keep rates unchanged was interpreted positively by crypto markets. When monetary policy remains predictable, investors often view risk-on assets like cryptocurrencies more favorably.
Most financial analysts believe the first rate cut could come in September 2025, with ING forecasting that the Fed may maintain its wait-and-see approach until then. Polymarket data also reflects low expectations for rate cuts in June or July, suggesting markets are pricing in stability.
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This clarity reduced uncertainty, allowing capital to flow into alternative assets such as Bitcoin, which many investors see as an inflation-resistant store of value during periods of monetary tightening or transition.
2. New U.S.-UK Trade Agreement Boosts Market Sentiment
A newly announced trade deal between the United States and the United Kingdom provided another catalyst for the rally. Under the agreement:
- The U.S. will reduce tariffs on UK steel and automobile imports.
- The UK will eliminate its $800 million digital services tax targeting major American tech companies.
This bilateral move signals a broader shift toward trade liberalization and improved international economic cooperation. Reduced regulatory friction often correlates with increased investor confidence—not just in equities but also in digital assets.
Moreover, the timing is significant. U.S. and Chinese officials are scheduled to meet in Switzerland for renewed trade discussions, sparking hopes of easing long-standing tensions between the world’s two largest economies. Any progress toward lowering U.S.-China tariffs could further stimulate global markets—including cryptocurrencies—by improving supply chain stability and corporate earnings outlooks.
Such developments enhance the macro backdrop for risk assets, reinforcing Bitcoin’s role as a hedge against economic volatility.
3. Coinbase’s Acquisition of Deribit Accelerates Institutional Adoption
In a landmark move for the crypto derivatives space, Coinbase announced its acquisition of Deribit, a leading platform for Bitcoin and Ethereum options and futures trading, in a reported $2.9 billion deal.
Deribit handles billions in daily trading volume and is widely regarded as the go-to exchange for institutional-grade derivatives trading in crypto. Unlike many competitors, it has never issued a native token and manages over $4 billion in assets under management (AUM)—a testament to its operational integrity and market trust.
Spencer Yang, Core Contributor of Fractal Bitcoin, commented on the acquisition:
“Global derivatives trading is a key driver of growth for Coinbase. Deribit is the platform of choice for global traders for Bitcoin and Ethereum options. Their platform has a strong operating history and is the only major independent company with similar DNA to Coinbase. They’ve not launched a token and have an AUM of $4B.”
This strategic integration strengthens Coinbase’s position as a full-stack financial services provider in the digital asset ecosystem, bridging spot markets with sophisticated derivatives tools—critical infrastructure for attracting traditional finance players.
👉 Learn how institutional-grade trading platforms are shaping the future of crypto finance.
Strong Institutional Demand Fuels Continued Inflows
Beyond macro and structural catalysts, on-chain and fund flow data reveal robust institutional participation driving today’s rally.
Spot Bitcoin ETFs saw $142 million in net inflows** on Wednesday alone, bringing the weekly total to **$482 million. Since the start of 2025, these exchange-traded funds have accumulated over $5.7 billion in net inflows, underscoring sustained demand from regulated investment vehicles.
Such consistent buying pressure from ETFs reduces available supply in the open market—a classic bullish dynamic known as "supply shock." With fewer Bitcoins available for trading at current prices, even modest increases in demand can trigger outsized price movements.
Top Performing Altcoins Riding the Wave
While Bitcoin leads the charge, several altcoins have outperformed during this rally:
- Pudgy Penguins (PENGU) – Gaining traction due to expanding NFT utility and brand partnerships.
- Virtuals Protocol (VIRTUAL) – Seeing increased usage in decentralized identity and social layers.
- Brett (BRETT) – Riding viral momentum from meme culture and community engagement.
- Pepe (PEPE) – Benefiting from speculative trading amid renewed meme coin enthusiasm.
These tokens reflect diverse narratives—from digital collectibles to decentralized social infrastructure—demonstrating that investor interest extends beyond pure monetary use cases.
Core Keywords Driving Market Conversation
Key terms dominating today’s crypto discourse include:
Bitcoin price surge, crypto market rally, Federal Reserve interest rates, institutional crypto adoption, Bitcoin ETF inflows, Deribit acquisition, U.S.-UK trade deal, and altcoin performance.
These keywords not only reflect real-time trends but also align with high-volume search queries from users seeking timely insights into market movements.
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Frequently Asked Questions (FAQ)
Q: Why is Bitcoin approaching $100,000 now?
A: A confluence of factors—including stable Fed policy, positive trade news, institutional inflows, and major exchange developments—has created strong bullish momentum pushing Bitcoin toward the $100K milestone.
Q: Do interest rate decisions directly affect cryptocurrency prices?
A: Not directly, but they influence investor sentiment. Lower or stable rates tend to increase appetite for risk assets like crypto, while rising rates can suppress speculative investments.
Q: What impact does Coinbase’s Deribit acquisition have on traders?
A: It enhances access to advanced derivatives products through a regulated U.S.-based platform, potentially increasing liquidity and attracting more institutional capital into crypto options and futures markets.
Q: Are altcoins safe to invest in during a Bitcoin-dominated rally?
A: Altcoin investing carries higher volatility and risk. However, strong fundamentals, active development, and ecosystem growth can make certain projects compelling during bullish cycles.
Q: How do trade agreements affect cryptocurrency markets?
A: While indirect, improved international trade relations reduce macroeconomic uncertainty, boost investor confidence, and often lead to broader financial market gains—including digital assets.
Q: Where can I track real-time crypto price movements and market trends?
A: Reliable platforms offering live data, charting tools, and market analysis can help you stay informed—especially those integrating both on-chain metrics and macroeconomic indicators.
This rally underscores the growing maturity of the cryptocurrency market, where price movements are increasingly shaped by real-world economic events, regulatory clarity, and institutional infrastructure development—not just speculation. As these forces continue to converge, Bitcoin and select altcoins may sustain upward momentum throughout 2025 and beyond.