Bitcoin extends gains

9 Mayıs 2025

Bitcoin extends gains amid broadening risk appetite in financial markets

Written by Samer Hasn, Senior Market Analyst at XS.com

Bitcoin continues its upward trajectory today, steadfastly holding above the $104,000 threshold—a level unseen since late January.

The cryptocurrency’s rally aligns with a sustained revival of risk sentiment across broader markets, fueled by receding trade war tensions and incremental progress in Bitcoin’s adoption.

On the trade front, U.S. President Donald Trump announced—albeit with scant detail—his intent to finalize a trade agreement with the United Kingdom, touted as the “first in a series of deals.” The rushed nature of this pact may reflect a political maneuver to mitigate fallout from his administration’s global trade conflicts, according to the New York Times. This lends credence to the view that Washington is pivoting toward de-escalation, alleviating economic uncertainty and further buoying risk assets, from equities to cryptocurrencies.

Optimism also surrounds U.S.-China relations, with high-level communication channels bridged. Any breakthrough in negotiations could inject additional momentum into risk-driven markets.

This sentiment is mirrored in equity markets, where fear has receded: the VIX “fear index” has plunged to its lowest level since April 2nd’s “Liberation Day.” Declining equity volatility and resurgent risk appetite are critical catalysts for cryptocurrencies—the highest-beta assets—to extend their rally.

In a nod to crypto’s growing legitimacy, Arizona passed legislation authorizing a state-managed cryptocurrency reserve fund, becoming the second U.S. state (after New Hampshire) to formally integrate Bitcoin into its fiscal framework. However, the measure stops short of a more ambitious—and rejected—proposal that would have permitted state pension funds to allocate to cryptocurrencies, underscoring lingering concerns over retail investor exposure.

Investor capital continues flooding into spot Bitcoin ETFs, now poised for a fourth consecutive week of net inflows—albeit at a moderating pace. Since Monday, these funds have absorbed nearly $600 million in net deposits.

Futures markets echo this bullish momentum. Bitcoin futures open interest surged to $68 billion today, a January high per CoinGlass data. Buyers maintain dominance for a fifth straight session, with the futures long-short ratio holding firmly above parity. Meanwhile, the open-interest-weighted funding rate hit its highest since February, reflecting accumulating long positions and expectations of further upside.

 

Zaid Barem / ymm