$BTC

The sharp rise of Bitcoin in May 2025 is explained by a combination of several key factors:

1. Activity of institutional investors

After the approval of several new Bitcoin ETFs in the USA and Asia, large funds began actively buying Bitcoin, increasing demand in the market.

2. Macroeconomic instability

Investors are seeking safe-haven assets amid instability in traditional markets, including inflation risks and geopolitical tensions. Bitcoin is often viewed as a digital 'safe haven', especially in countries with devaluing currencies.

3. Halving in April 2024

The halving effect (the reduction of mining rewards by half) begins to take effect with a time lag. Historically, the price of BTC rises 6–12 months after the event. Currently, we are right in that window.

4. Limited supply on exchanges

An increasing amount of BTC is moving to long-term wallets and cold storage, while supplies on exchanges are decreasing. This creates a shortage and pushes the price up.

5. Optimism and psychological levels

The breakthrough of the $95,000 mark triggered a wave of FOMO (fear of missing out) among traders and retail investors, which intensified the upward momentum.