#XRPETF New historical highs for Bitcoin price could occur in May
Data suggests that Bitcoin could reach new highs faster than most expect.
Market Analysis
Key Points:
Strong liquidations played a role in Bitcoin's return to $95,000.
The weakened correlation of Bitcoin with stocks highlights its growing independence as an asset.
The bullish positioning of institutional investors contrasts with the caution of retail traders, supporting a rally above $100,000.
It gained 11% between April 20 and April 26, showing resilience by staying close to its two-month high around $94,000. This relief rally followed signals from the Trump administration about relaxing import tariffs, as well as solid corporate earnings reports.
Investor confidence in Bitcoin was further bolstered by a record $3.1 billion in net inflows into spot Bitcoin exchange-traded funds (ETFs) over five days. However, a key BTC derivatives indicator showed signs of bearish momentum, raising questions about whether the $100,000 target remains realistic.
Perpetual Bitcoin futures contracts are favored by retail traders because their prices closely follow the spot market. A positive funding rate means that buyers pay to hold their positions, so a reversal in this rate is usually linked to bearish trends.
Annualized funding rate of perpetual Bitcoin futures. Source: Laevitas.ch
The pronounced negative funding rates recorded on April 26 are very unusual during bullish markets, as they indicate higher demand from sellers. This metric has been volatile since April 14, but sellers were caught off guard when the price of Bitcoin surpassed $94,000.
