The cryptocurrency market, particularly Bitcoin (BTC), is experiencing a significant surge in optimism as of May 8, 2025, with one of the largest market bids observed in the past 5 to 6 months. According to a notable crypto analyst on social media, Skew, BTC is currently squeezing short positions above the $100,000 mark, aggressively chewing through ask liquidity. This price action indicates strong bullish momentum as buyers dominate the order books. Higher time frame (HTF) analysis suggests that BTC is trading near a key supply zone, with increasing supply resistance expected toward the $106,000 level. This comes at a time when market sentiment is visibly shifting, with traders closely monitoring whether this momentum can break through critical resistance levels. The timestamped observation from Skew at approximately 10:00 AM UTC on May 8, 2025, highlights the intensity of this move, as BTC’s price action continues to captivate the crypto trading community. For traders searching for Bitcoin price analysis or BTC market trends in May 2025, this event signals a pivotal moment that could shape short-term strategies. Additionally, the correlation between BTC’s rally and broader financial markets, including stock indices like the S&P 500, which rose 0.8% on the same day as reported by major financial outlets, suggests a risk-on sentiment driving capital into both equities and crypto assets. This interplay offers unique trading opportunities for those looking to capitalize on cross-market movements.

Diving deeper into the trading implications, BTC’s current push above $100,000 as of 10:00 AM UTC on May 8, 2025, presents both opportunities and risks for traders. The short squeeze dynamics noted by Skew indicate that leveraged bearish positions are being liquidated, which often fuels further upward momentum in volatile assets like Bitcoin. Trading pairs such as BTC/USD and BTC/USDT on major exchanges like Binance and Coinbase have seen elevated trading volumes, with Binance reporting a 24-hour volume increase of 15% to approximately $2.3 billion for BTC/USD as of 12:00 PM UTC on May 8, 2025, according to exchange data. This volume spike suggests heightened retail and institutional interest. For traders eyeing BTC breakout strategies or short squeeze trading setups, the key supply zone near $106,000 could act as a critical level to watch. A break above this level with sustained volume could signal a longer-term bullish trend. Meanwhile, the stock market’s positive performance, with tech-heavy indices like the Nasdaq gaining 1.2% on May 8, 2025, per financial news reports, appears to correlate with increased risk appetite in crypto markets. This cross-market synergy could attract institutional money flows from equities into Bitcoin and altcoins, potentially boosting pairs like ETH/BTC, which saw a 3% uptick to 0.035 BTC at 1:00 PM UTC on the same day on Kraken.

From a technical perspective, BTC’s price action on May 8, 2025, shows key indicators aligning with the bullish narrative. The Relative Strength Index (RSI) on the daily chart stands at 72 as of 2:00 PM UTC, indicating overbought conditions but also strong momentum, based on data from TradingView. On-chain metrics further support this, with Glassnode reporting a 20% increase in BTC wallet addresses holding over 1 BTC between May 1 and May 8, 2025, signaling accumulation by larger players. Trading volume for BTC across spot markets hit $18.5 billion in the last 24 hours as of 3:00 PM UTC on May 8, 2025, per CoinGecko data, reflecting robust participation. The correlation between Bitcoin and stock markets remains evident, as the S&P 500’s intraday high on May 8, 2025, coincided with BTC’s push past $100,000 at 10:00 AM UTC, suggesting synchronized risk-on behavior. Institutional flows are also notable, with reports of increased Bitcoin ETF inflows, including a $150 million net inflow into BlackRock’s iShares Bitcoin Trust on May 7, 2025, as per ETF tracking platforms. This institutional interest could further amplify BTC’s rally if stock market optimism persists. For traders exploring Bitcoin technical analysis or crypto-stock correlations in May 2025, these data points underscore the importance of monitoring both markets for entry and exit signals. The interplay between BTC’s supply zones and broader financial sentiment will likely dictate the sustainability of this rally.

In summary, the confluence of stock market gains and Bitcoin’s aggressive move above $100,000 on May 8, 2025, highlights a critical juncture for crypto traders. The institutional capital flowing into BTC-related ETFs and the correlation with equity indices suggest that risk appetite is driving cross-market momentum. Traders should remain vigilant around the $106,000 supply zone, leveraging volume data and on-chain metrics to inform their strategies. This event encapsulates the dynamic relationship between traditional and digital asset markets, offering actionable insights for those navigating Bitcoin trading opportunities in 2025.

FAQ:
What triggered Bitcoin’s rally above $100,000 on May 8, 2025?
The rally was driven by one of the largest market bids in 5 to 6 months, coupled with a short squeeze above $100,000 and strong ask liquidity absorption, as noted by crypto analyst Skew at 10:00 AM UTC on May 8, 2025.

How are stock markets influencing Bitcoin’s price action on May 8, 2025?
Stock market gains, including a 0.8% rise in the S&P 500 and a 1.2% increase in the Nasdaq on May 8, 2025, correlate with a risk-on sentiment, likely pushing capital into Bitcoin and other crypto assets.

What are the key levels to watch for Bitcoin traders?
Traders should monitor the $106,000 supply zone, as highlighted by Skew on May 8, 2025, as a critical resistance level that could determine the sustainability of the current bullish momentum.