On May 9, 2025, Bitcoin jumped over $103,000, its highest point since January. This remarkable increase was fueled by massive inflows into Bitcoin ETFs listed on U.S. markets. The second part of the reason behind this surge is the weakening dollar and increasing macro uncertainty, making Bitcoin a very attractive hedge. The wider crypto market surged, too. Ethereum and a slew of other altcoins have been instrumental in driving the global market capitalization above $3.2 trillion.
The rally comes on the heels of an explosive week of inflows into U.S.-listed Bitcoin ETFs. These ETFs have seen a combined more than $5.3 billion in inflows over the last three weeks, indicating some serious enthusiasm from institutional players. The fact that more retail wallets are buying BTC and ETH proves the trend towards widespread adoption.
ETF Inflows Drive Bitcoin's Ascent
Bitcoin’s recent surge has everything to do with the launch of its first exchange-traded funds. BlackRock’s iShares Bitcoin Trust (IBIT) was at the forefront of the movement with $69 million in inflows. Fidelity’s Wise Origin Bitcoin Fund FBTC shot to the front with $35.3 million in inflows. In comparison, the ARK 21Shares Bitcoin ETF (ARKB) had $13.1 million of net inflows.
In fact on May 8 th 2025 Bitcoin ETFs reached cumulative inflows of $117.4 million. This latest wave is a testament to the insatiable appetite for these vehicles of investment. The recent strong inflows indicate that more believers are viewing Bitcoin as a rightful asset class. Both institutional and retail investors are piling onto this trend. Since the start of 2025, IBIT has led the SPDR Gold Shares (GLD) in net inflows. So far it has raised over $6.96 billion!
Whatever the cause, this shift indicates a potential turning of the tide in investor preferences. Increasingly, investors are seeing Bitcoin as a better alternative to traditional safe-haven assets such as gold. Strong ETF inflows are sending Bitcoin’s price surging. This buying spree has propelled Bitcoin over the $103,000 level in recent days.
Crypto Market Capitalization Rebounds
As we’ve seen with the strong rebound in total crypto market capitalization, that positive momentum seems to have spilled over beyond Bitcoin. After flirting with resistance around the $2.4 trillion market level, the market has blasted through the $3.2 trillion mark. Ethereum and many other altcoins have made huge gains during this altcoin season, helping to pull the entire crypto market up with them.
The rebound speaks to the positive investor sentiment that has returned to the crypto market. More importantly, it indicates that the market has absorbed and adjusted to past corrections and is once again set to continue growth. In part, that’s because the increasing variety of assets is increasing their market cap. This trend is positive, indicating a maturing ecosystem replete with a greater diversity of investment opportunities.
When total crypto market capitalization is increasing, it’s a clear indication that the market is on a healthy and positive growth track. It’s a reflection of the impact we’ve had, and the continued potential for innovation and development within the crypto industry.
Ethereum's Pectra Upgrade and Staking Surge
There’s some really exciting stuff happening on Ethereum. The total amount of unique retail wallets buying ETH has increased thousands of times since the beginning of this week. On top of that, the next Pectra upgrade has everyone buzzing in Ethereum circles.
More than 400,000 ETH have been added to staking in the three days since the Pectra upgrade was announced. Besides enhancing overall network performance with more frequent, stable blocks, the upgrade is intended to simplify and accelerate the staking process. By lowering the technical barriers, it hopes to bring more people into the fold and contribute to an even more decentralized network.
The rising ETH staking reflects the increasing belief that Ethereum will be what it sets out to be in the long run. The Pectra network upgrade will further enhance the network’s scalability, security, and overall usability. This will ensure its place as the most dominant and adopted blockchain platform.
