UPDATE: Bitcoin (BTC) is experiencing a significant rally tonight, with its price reaching over $98,000. Currently, BTC is trading at $97,989.29 as of 10:15 PM ET on Wednesday, May 7, 2025.

This surge is attributed to a combination of factors, including institutional investments, macroeconomic developments, and favorable market sentiment.

1. Institutional Investments Bolster Confidence

Japanese firm Metaplanet recently acquired 555 BTC, valued at around $53.5 million, as part of its “Bitcoin Financial Strategy”. Additionally, BlackRock’s iShares Bitcoin Trust reported a net inflow of $421 million in a single day, highlighting growing institutional interest

2. Federal Reserve Maintains Interest Rates

The U.S. Federal Reserve’s decision to keep interest rates steady between 4.25% and 4.50% has contributed to Bitcoin’s appeal as an alternative investment. Analysts suggest that any future dovish signals from the Fed could further propel BTC towards the $100,000 mark.

3. Positive Developments in U.S.-China Relations

Upcoming trade talks between the U.S. and China have improved market sentiment, with Bitcoin’s price rising by 3.6% to $97,014 following the announcement . This optimism extends to the broader cryptocurrency market, with assets like Ethereum and XRP also experiencing gains.

4. On-Chain Metrics Indicate Strong Market Health

Bitcoin’s realized capitalization has reached an unprecedented $890 billion, signaling strong investor confidence and a potential rally towards the $100,000 mark.

With Bitcoin trading near $98,000, analysts are closely monitoring key resistance levels.

A sustained move above $98,000 could pave the way for BTC to test the psychological $100,000 threshold.

However, market participants remain vigilant, as any shifts in macroeconomic indicators or investor sentiment could influence short-term price movements.

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