We close one of the most important weeks for cryptocurrencies in which overnight the price of some altcoins such as Etherium have risen by more than 30% giving holders back hope of seeing a Season throughout 2025 And what is even more important this could be nothing more than the tip of the iceberg in which as the founder of Binance has signed, global adoption is about to catapult the price of Bitcoin and many altcoins to unknown levels In today's video we are going to analyze in depth everything that has happened in the market in recent days and especially the recent rise to see where the market could continue to evolve And finally we are going to take a magnifying glass to CZ's latest speech on the entire situation and possible future of the crypto market and especially Bitcoin
The best week of all of 2025
And to put everything into context, after a fairly good weekend where the price of Bitcoin managed to recover above 96,000, the week started off fairly quietly with no major news in the markets and with investors' attention focused on Wednesday, May 7, and the expected Fed decision. An event that, just as the markets predicted, ended up with the Fed continuing to keep interest rates unchanged and, despite pressure from Trump, refusing to lower rates for the time being given the strength the markets were showing. And if we review some of the highlights of Powell's speech, he stated the following.
Despite the increased uncertainty, the economy remained in a solid position. He added that the risks of inflation and unemployment appeared to have increased, but that despite not making any changes to rates, they were in a favorable position to respond in a timely manner if necessary.
On the other hand, in reference to Trump, he was quite clear and said:
That his pressure would not affect his work at all and that he has never had a meeting with a president and never will.
That is to say, despite the fact that inflation data has been much more positive than expected recently, especially considering that with the tariff crisis, many expected a rebound in prices and directly in inflation, the Fed is remaining firm in its position of lowering inflation to 2% and not reducing rates until they are 100% sure that prices will not spiral out of control. For this reason, for the time being, we will have to be a little more patient with rate cuts and wait for future meetings like the one in June to see if we can really reach that point.
Bitcoin Price Evolution
That said, returning to the price of Bitcoin, this Fed announcement and meeting did not cause a collapse in the price of Bitcoin, which, given the lack of interest rates, remained fairly stable in the hours following the event. However, this did not last long. Just a few hours later, the price of Bitcoin fully resumed its upward trend, catapulting more than 4% from $95,000 to nearly $100,000.
But why is it suddenly soaring? Well, there were several important reasons why the market rallied.
First, during the early hours of the 8th, Arizona officially approved the first state-level Bitcoin reserve fund in the United States. This law, while not yet allowing direct investment in Bitcoin, is a major step forward for the crypto market for several reasons.
Several states are currently seeking the approval of Bitcoin bills.
The fact that Arizona has already taken this first step is a major step forward for other states.
This legislation allows the state to hold unclaimed digital assets such as cryptocurrencies for a period of three years. If they are not claimed during that time, the state can manage them and add them to its strategic reserve.
fuente
Another factor that helped Bitcoin rise was Trump's tweet on May 8:
"Good news. At the 10 a.m. conference this morning, we will announce the closing of a major new trade agreement with a great and respected country, and it will be the first of many."
At 10 a.m., it was officially announced that the United States had reached a trade agreement with the United Kingdom. A deal that Trump claimed would be very beneficial for both countries, promoting trade and removing barriers.
Furthermore, the situation with China has also progressed, with rapprochement and Trump's intention to reduce tariffs on China. These developments were positive for the markets and greatly relaxed investors. Another third factor that has helped drive the price up has been liquidations. According to Coinglass, between May 8 and 9 alone, we saw a liquidation of over $11.1 billion in shorts. This figure significantly helped maintain Bitcoin's momentum.
There is still a significant amount of liquidation to be done above that. If Bitcoin breaks new highs, we could see a cascade of short liquidations generating further upward pressure. What's most interesting is that, despite being less than $6,000 away from breaking new highs, the spotlight hasn't been on Bitcoin, but on altcoins.
After many months of Bitcoin dominance, altcoins have once again shone.
Ethereum rose more than 28% in a matter of hours, from $2,000 to $2,400.
Projects like Solana also rallied.
Bitcoin's dominance fell from 65.3% to 63%, indicating that altcoins are gaining ground.
Although it's still too early to say this is the start of a trend reversal, these signs are positive.
Well, this post is coming to an end. I hope you find all this information useful, but be aware: I am not a financial advisor. All content provided on my blog is for educational purposes only, based on my own success and personal experience. Act responsibly and intelligently when spending and investing your money.
