Experts discuss factors influencing the price of Bitcoin and other cryptocurrencies. Is a new price high possible for BTC in the near future.
The price of Bitcoin is just a few percent away from its all-time high (around $110,000). Some investors are optimistic that it will break through the $110,000 mark, buoyed by easing trade tensions between the US and China and positive expectations for US macroeconomic indicators. Others believe that Bitcoin is overbought, which could lead to a reversal or sideways movement in prices.
“Bitcoin is hovering near historic highs, supported by strong technical momentum, trading above its 50- and 200-day moving averages. Growing institutional adoption and a favorable outlook for 2025 point to a likely path to another high,” said Vincent Liu, IT director at Kronos Research.
As of May 12, the price of Bitcoin (BTC) stands at $104,400. The price briefly approached $106,000 on the Binance exchange but fell back to $104,000 within an hour. Over the past week, the price of Bitcoin has risen by about 10% from around $94,000.
However, other analysts note that the relative strength index (RSI) indicates that the cryptocurrency is in an “overbought” zone. The importance of the $100,000 level for Bitcoin is also noted.
“This does not necessarily mean an immediate reversal, but it does increase the likelihood of some short-term cooling or sideways movement. Retesting and consolidation above the key psychological level of $100,000 would be a healthy development and could lay the foundation for further growth,” said BTC Markets analyst Rachel Lucas.
Geopolitics and macroeconomics
The rise in Bitcoin prices occurred amid easing trade tensions between China and the US. Experts suggest that this could lead to a flow of liquidity into other cryptocurrencies.
On the evening of May 11, US officials announced that they had reached a trade agreement with China after two days of talks in Geneva, according to a White House statement citing US Treasury Secretary Scott Bassett.
“The recent rise in the crypto market was driven by renewed optimism about trade negotiations between the US and China. We are now seeing a classic rotation as Bitcoin's dominance reaches levels last seen before the 2021 bull market, and capital begins to flow into altcoins,” said Presto Research analyst Min Jung.
Experts see macroeconomic expectations regarding inflation data (expressed in the consumer price index) in the US, which will be published on May 13 for April, as another factor for Bitcoin's growth.
According to 10x Research, the consensus among market participants is that the overall consumer price index is likely to remain unchanged at 2.4% in April.
“If these expectations are met, the market may view the inflation report as positive. Excluding negative headlines about tariffs, this week's inflation data could be a catalyst for growth,” Marcus Thielen, founder of 10x Research, said in an interview with CoinDesk, noting that this could prove to be a catalyst for growth to a new price high.
However, experts warn that caution should be exercised in such a highly volatile market.
“With macroeconomic events looming, such as the upcoming release of the consumer price index, investors should remain vigilant, manage risk prudently, and adhere to diversified strategies to navigate this highly volatile environment,” added Liu from Kronos.
