The new Bitcoin price could reach an all-time high in May — Here’s why
Data shows that Bitcoin could reach a new high faster than most investors expect.
Key points to remember:
The strong liquidation has impacted Bitcoin's price level of $95,000.
The weakening correlation of Bitcoin with stocks highlights its increasing independence as an asset.
The optimistic position of institutional investors contrasts with the caution of retail traders, supporting the price momentum above $100,000.
Bitcoin increased by 11% from April 20 to April 26, demonstrating resilience by staying close to a two-month high of around $94,000. This slight relief rally came after signals from the Trump administration regarding easing import taxes, as well as strong corporate earnings reports.
Investor confidence in Bitcoin was further boosted by a record net inflow of $3.1 billion into Bitcoin exchange-traded funds (ETFs) over five days. However, a key BTC derivatives indicator shows signs of a downturn, raising questions about whether the $100,000 target is still realistic.
Perpetual Bitcoin futures are favored by retail traders because their prices closely track the spot market. A positive funding rate means buyers are paying to maintain their positions, thus a reversal in this rate is often associated with a bearish trend.
A strong negative funding rate recorded on April 26 is very unusual in a bullish market, as it indicates stronger demand from sellers.