Bitcoin has again been in the news, hitting $104000 on 12 May 2025 on Monday. This has created a new high for the world’s leading cryptocurrency since February, and it renews the currency as a key part of the world’s financial circuitry. Bitcoin was at $104,179.72 per token and a market capitalization of $2.07 trillion as of 10:30 a.m. IST so far. In Indian rupees, that works out to more than ₹88 lakh per Bitcoin.
The crypto market has gained new hope mainly because of geopolitical events and keen institutional interest. Bitcoin’s price increase also happens at a time when the crypto market is recording a broad recovery, with other coins such as Ethereum and BNB recording stunning gains.
What’s Fueling the Rally?
Bitcoin’s move over $100K has held for three days now. The analysts say one of the main stabilizers in this regard is President Trump’s declaration of a “total reset” in U.S.–Chinese trade ties, after diplomatic talks in Geneva. The news has placated global markets and seen investor confidence rise, especially in digital currencies such as Bitcoin.
More importantly, demand at institutions grows. According to CoinSwitch Markets’ desk, Bitcoin ETFs attracted over $1 billion in inflows last week as large-scale investors also take an interest. These exchange-traded products make it simpler for conventional investors to have a position on Bitcoin, thus supporting its price even further.
The larger crypto market was also in the green. The overall crypto market cap reached $3.49 trillion on Friday, the highest level in early 2025. Even as Bitcoin was on the rise, its dominance is gradually coming down, which indicates that investors are also moving capital into other coins, known as alternative coins, or “altcoins”.
Signs of Overheating?
Although the rally is exciting to crypto enthusiasts, some analysts are cautioning them. Basics, such as technical indicators such as the relative strength index (RSI), indicate that Bitcoin is in the zone of overbought levels. What this means is that a short-term correction or price consolidation might be just around the corner.
Recently, such steep rallies have preceded temporary, brief pullbacks prior to the further leg up. Through which direction this trend turns will depend on whether markets react to continued events happening globally, especially economic data and monetary policy decisions by U.S central banks.
Ethereum and Altcoins Join the Party
Notwithstanding the leadership in headline news by Bitcoin, Ethereum (ETH), and other altcoins have done well too. Ethereum surged 8% over the weekend as preparations for the Pectra upgrade and rising use cases in DeFi and NFTs pushed the coin.
Ethereum is experiencing a “resurgence,” which may kickstart the start of an altcoin season where altcoins (non-Bitcoin cryptocurrencies) outperform, says Avinash Shekhar, CEO of Pi42. Ethereum was up by nearly 40% in the last week, as confidence in its ecosystem continues to rise.
What This Means for Investors
Bitcoins pushing back above $104,000 denotes a bullish return within the crypto markets. For old players, this could be our opportunity to see where lines are drawn and where to make profits, or venture into altcoins. To new investors, it is a warning to watch the market carefully with caution, given how volatile it is.
Experts still recommend long-term investment and diversification between crypto and conventional assets. Although there is an upward trend, history reveals that steep increases are redeemed by corrections.
Final Thoughts
The price of Bitcoin’s recent rise above 104K is further proof of the crypto universe in 2025. With institutional involvement, geopolitical shifts, and healthy altcoin momentum behind it, the market is a lot more convinced than it has been for months. But investors should be watchful, because big profits often involve risk.
