Following a brief pullback, Bitcoin $BTC remains on a solid long-term trajectory. Strong institutional inflows and rising market dominance support the outlook for a potential new all-time high in 2025.

Market Overview: Resilient Momentum Amid Short-Term Correction

The week began with a 4.3% dip in Bitcoin’s price, declining from a near peak of $97,900 on May 2 to $93,500. By May 5, the price had modestly rebounded to around $94,000. While some traders remain cautious, citing a temporary slowdown in institutional buying, broader market indicators continue to signal bullish momentum.

Bitcoin Market Dominance Surges

Bitcoin now commands 70% of the total cryptocurrency market capitalization — its highest level since January 2021. This dominance persists despite the launch of several high-profile altcoins, including SUI, Toncoin $TON (TON), PI, Official Trump $TRUMP (TRUMP), Bittensor (TAO), Ethena (ENA), and Celestia (TIA). These projects, while notable, have yet to shift investor focus away from Bitcoin’s established market position.

Institutional Demand Remains Robust

Between April 22 and May 2, spot Bitcoin ETFs recorded net inflows of $4.5 billion, highlighting continued interest from institutional investors. Simultaneously, Bitcoin futures demand has surged. According to CoinGlass, total open interest in Bitcoin futures reached 669,090 BTC — a 21% increase since March 5. At the #TradeStories Chicago Mercantile Exchange (CME), open interest now exceeds $13.5 billion, reinforcing the trend of institutional participation.

Regulatory Developments Pose Short-Term Uncertainty

Some legislative uncertainties remain. Although the U.S. Strategic Bitcoin Reserve Bill was introduced on March 6, the government has yet to reveal its Bitcoin holdings or outline a purchase strategy. Meanwhile, several Bitcoin-related bills at the state level — including in Arizona — have failed to gain traction, creating minor headwinds for market sentiment.

Outlook: Path Toward a New All-Time High

Despite short-term fluctuations and regulatory ambiguity, market data indicates that Bitcoin is in a healthy accumulation phase. If the current pace of institutional capital inflows continues, the foundation is set for a potential new all-time high in 2025.