Bitcoin has once again shattered expectations, soaring to an impressive $93,600 as of today, May 12, 2025. This marks a significant rebound for the cryptocurrency, which has experienced volatile swings in recent months. The surge comes in the wake of softened rhetoric from former President Donald Trump, who has notably eased his criticism of the Federal Reserve’s chair, Jerome Powell. Meanwhile, AI-related cryptocurrencies have also seen a meteoric rise, signaling a broader market rally.
Trump and Powell: A Softened Stance
In an unexpected twist, Donald Trump has toned down his usual sharp critique of Jerome Powell, leading to a fresh wave of optimism across financial markets. Crypto investors, always keen on macroeconomic cues, seem to have interpreted this détente as a green light for riskier assets. “It’s fascinating to see how political dynamics can sway market sentiment so dramatically,” notes crypto analyst Jane Kim. “Trump’s comments have seemingly injected a sense of calm, allowing room for growth in crypto assets.” This aligns with recent reports of Bitcoin Traders Eyeing Breakout to New Highs as Trump Says Tariff Deals Progressing, highlighting the influence of political developments on market movements.
Bitcoin’s Meteoric Rise and Its Ripple Effect
Bitcoin’s recent ascent has not only buoyed investor confidence but also catapulted it past Alphabet to become the fifth largest asset globally. According to data from Standard Chartered, BTC is increasingly being adopted as a hedge against systemic risks, a trend that could further propel its value in the coming months. This spike has led to a substantial $500 million in liquidations, highlighting the volatile excitement that continues to characterize the crypto market. As explored in Bitcoin Surges Past $94,000 as Institutional Interest and Market Optimism Grow, the role of institutional interest is pivotal in driving these price movements.
But here’s where it gets interesting: alongside Bitcoin, Ethereum has also enjoyed a notable uptick, climbing to $1,810. This isn’t just a Bitcoin story—it’s a broader crypto narrative. Ethereum and other Layer 1 coins like Solana and Sui are riding this bullish wave, bolstered by the largest inflow into BTC and ETH exchange-traded funds (ETFs) seen in months, totaling $913 million and $39 million, respectively.
AI Coins: The New Frontier?
Beyond the usual suspects, AI-linked cryptocurrencies have surged in popularity. Tokens like IMX and ENA have led the pack of top gainers, reflecting a burgeoning interest in blockchain applications that intersect with artificial intelligence. “The enthusiasm surrounding AI coins is palpable and may signify a new era of innovation within the crypto space,” suggests blockchain researcher Alex Thompson.
This surge in AI coins coincides with traditional finance giants such as Cantor and Softbank teaming up with Tether to create a $3 billion Bitcoin vehicle, a move that underscores the growing intersection between traditional and decentralized finance.
Implications and Look Ahead
As Bitcoin and its crypto counterparts continue their upward trajectory, questions linger about the sustainability of this rally. The European Central Bank has voiced concerns about the United States’ supportive stance on crypto, which they argue could pose risks for European markets. Meanwhile, developments like the XRP ledger hack serve as a stark reminder of the security challenges that persist in the digital asset space.
Looking ahead, the potential partnership between Trump Media and CryptoCom to launch their own ETFs could further reshape the landscape. And with the Malaysian Prime Minister engaging in crypto discussions with Binance’s CZ, global interest in digital currencies shows no signs of fading.
In sum, the crypto market is buzzing with activity and intrigue. While the current rally is exhilarating, investors and analysts alike remain vigilant, pondering whether this momentum can be sustained or if another twist in the tale is just around the corner. The only certainty in the crypto world? Change is the only constant.
Source
This article is based on: BTC back to $93K, Trump softens rhetoric, AI coins surge
Further Reading
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- Trump’s Crypto Sherpa Bo Hines Says Crypto Legislation on Target for Quick Completion
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
