Bitcoin (BTC) has staged a strong recovery, rebounding 8% from its March 11 low of $76,703. This upward momentum is largely driven by institutional investors aggressively accumulating BTC using leverage. With improving macro liquidity conditions and increasing regulatory clarity, Bitcoin appears poised for further gains, potentially surpassing $105,000 by May 2025.

Key Factors Driving Bitcoin’s Price Forecast

1. Institutional Leverage and Margin Longs on the Rise

Recent data indicates a surge in leveraged long positions by institutional investors, signaling strong confidence in Bitcoin’s future price appreciation. Despite recent market volatility, these leveraged bets suggest that major players expect a continued uptrend.

Historically, similar bullish positioning has preceded major rallies. For instance, in September 2024, a comparable increase in leveraged longs helped drive Bitcoin’s price from $50,000 to $75,000 in just two months. If history repeats itself, BTC could see another significant price surge in the coming months.

2. Bitcoin’s Correlation with Global Money Supply (M2)

Bitcoin has demonstrated an 82% correlation with the global M2 money supply, according to analyst Pakpakchicken. This suggests that Bitcoin’s price movements are heavily influenced by global liquidity conditions.

If central banks begin easing monetary policies amid growing recession concerns, increased liquidity could further fuel Bitcoin’s price appreciation. Historically, periods of monetary tightening have reduced risk appetite, leading to slower BTC growth, while liquidity expansion has driven Bitcoin to new all-time highs.

What’s Next for Bitcoin?

With institutional leverage increasing and macroeconomic conditions shifting toward greater liquidity, Bitcoin’s upward trajectory appears strong. If these factors continue to play out as expected, BTC could surpass the $105,000 mark by May 2025, setting new highs in the process. However, investors should remain cautious, as market volatility and regulatory developments could still influence Bitcoin’s path forward.$BTC