Bitcoin Surpasses $100,000 While Ether Posts Its Best Weekly Performance Since 2021
Cryptocurrency markets rallied this week, with Bitcoin maintaining a price above the significant $100,000 mark, and Ether experiencing its strongest gains in nearly four years.
Published: May 9, 2025
By Tanaya Macheel
In a promising week for cryptocurrency enthusiasts, Bitcoin remained robust, closing at approximately $103,144 on Friday, showing an increase of nearly 2% from the previous day. Earlier in the trading session, Bitcoin even peaked at $104,324, marking its highest level since January 31, 2025. Over the course of the week, Bitcoin has appreciated more than 6%, signaling a potential fourth consecutive week of gains—a noteworthy achievement not seen since November 2024. ### Factors Behind Bitcoin’s Surge
Gadi Chait, head of investment at Xapo Bank, suggested that Bitcoin’s rise is indicative of a significant shift in market dynamics rather than just a fleeting moment of excitement. Chait highlighted that large investors, often referred to as "whales," have been actively accumulating Bitcoin, alongside a surge in demand driven by exchange-traded funds (ETFs). He noted that as investors seek "neutral" assets in light of ongoing macroeconomic uncertainties, including tariff issues, the demand for Bitcoin continues to climb.
Recent geopolitical developments, such as a "mini-deal" between the United States and the United Kingdom and expectations of reduced tariffs with China, have contributed to a decrease in risk aversion, positively impacting not only Bitcoin prices but also equities and oil.
Ether’s Impressive Week
Parallel to Bitcoin’s success, Ether experienced a remarkable rebound, climbing as much as 11% in a single day, thus marking its best weekly performance since May 2021. Ether’s week-to-date gain stands at an impressive 26%, and it becomes one of the standout performers in the altcoin category, as the token continues to recover momentum after a challenging start to the year.
The Ethereum network recently completed its latest technological upgrade, known as "Pectra," which has led to lower network fees, improved Ether staking capabilities, and enhanced support for smart wallets—a contributing factor to Ether’s recent surge.
Altcoin Market Dynamics
While the sharp uptick in prices for Ether and other altcoins, such as Solana—which saw a 17% increase over two days—highlights a positive trend, the broader year-to-date performance reveals a different picture. Bitcoin’s year-to-date performance shows an increase of 11%, while Ether and Solana have each recorded declines, down 30% and 11% respectively.
Eric Chen, co-founder of Injective, noted that Bitcoin’s market structure has benefited from the introduction of spot Bitcoin ETFs in 2024, attracting a diversity of investors ranging from retirement accounts to large macro funds. In contrast, most altcoins continue to rely heavily on crypto-specific, risk-oriented capital, which has not seen substantial growth amidst the current interest rate environment.
Strategic Perspectives for Investors
Analyst Read Harvey from Wolfe Research advised that, given the current market conditions, investors may benefit more from focusing on Bitcoin rather than altcoins until the market for traditional investments stabilizes. “The coin continues to dominate the rest of the space on a relative basis,” Harvey remarked.
As cryptocurrency markets evolve, Bitcoin’s position as a leading asset appears secure, prompting discussions on whether it can maintain its recent outperformance compared to equities or whether existing market dynamics will pivot towards gold.
This week’s developments reaffirm Bitcoin’s strength and Ether’s resurgence, setting the stage for an engaging continuation in the cryptocurrency markets.
Additional Insights
For further updates and expert analyses on cryptocurrency trends, stay tuned to CNBC. The week has concluded with significant developments, and investors are keenly watching as the market shifts under evolving economic circumstances.
—Reported by CNBC’s Nick Wells and contributed by Tanaya Macheel.
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