Is the Bull Market Here? Analyst Predicts New All-Time High in May 2025

Bitcoin (BTC) has been showing signs of resilience, making a remarkable comeback as it surged by 11% from April 20 to April 26. This price action has raised hopes among traders and analysts, with some now predicting that Bitcoin could reach new all-time highs by May 2025. 

As of late April, the price hovered near $94,000, demonstrating strong momentum and offering an optimistic outlook for Bitcoin's price trajectory. 

However, despite recent bullish moves, several factors could influence whether the $100,000 target is attainable in the near future.

Also read:

What is Bitcoin Dominance? A Strategic Guide to Trading the BTC DOM for Maximum Profit

Bitcoin's Resilience Amid Global Economic Shifts

Bitcoin’s recent rally comes amid macroeconomic changes, including signals from the Trump administration regarding potential easing of import tariffs. Additionally, strong corporate earnings reports have further contributed to positive sentiment in the market. 

Bitcoin’s performance has been further buoyed by the introduction of Bitcoin exchange-traded funds (ETFs), which saw record net inflows of $3.1 billion over a span of five days. 

These developments have played a significant role in building investor confidence in Bitcoin as a store of value and potential growth asset.

However, despite these gains, there are some indicators of caution within the derivatives market. Bitcoin perpetual futures, which are widely favored by retail traders, showed some signs of bearish momentum. 

$450 Million BTC Short Position Liquidated

A negative funding rate in these futures contracts suggests that demand from sellers has been increasing. While this metric is often associated with bearish trends, the market has already seen over $450 million in BTC short positions liquidated since April 21. 

This reversal is significant, as it highlights the volatility and the potential for sharp price movements in either direction.

Decoupling from Traditional Markets: Bitcoin’s Independent Status

One of the most notable changes in Bitcoin’s performance is its decoupling from traditional markets, particularly the S&P 500. From March to mid-April, Bitcoin’s correlation with the S&P 500 stood at around 60%. However, by April 2025, this correlation dropped to 29%, suggesting that Bitcoin is increasingly being viewed as an independent asset, rather than a proxy for traditional stocks or technology assets. 

S&P 500 & BTC Price Correlation. TradingView CoinTelegraph

While Bitcoin’s value is still influenced by macroeconomic factors, such as inflation and global trade, this shift in its behavior indicates a growing maturation in its role as a store of value, akin to gold.

This increasing independence is also demonstrated by Bitcoin’s performance compared to other traditional assets like gold. Gold’s failure to maintain its bullish momentum after reaching an all-time high of $3,500 on April 22 contrasted sharply with Bitcoin’s ability to hold above the $90,000 level. 

This divergence has led some traders to view Bitcoin more favorably as a "digital gold," with potential for sustained growth.

BTC Strong Institutional Interest and the Path to $100,000

The future of Bitcoin’s price is not solely reliant on retail traders. Institutional involvement has been a crucial factor in recent price surges. The premium on Bitcoin’s two-month futures contracts, which rose to its highest level in seven weeks, signals a strong institutional interest in bullish positions.

At 6.5%, the premium remains within the neutral range of 5% to 10%, but it is moving away from bearish territory, indicating increased confidence from long-term investors.

While retail traders may still show caution due to the volatility seen in perpetual futures, institutional investors are more focused on long-term accumulation. This institutional interest could play a vital role in pushing Bitcoin’s price above the $100,000 mark, as these investors typically have a more patient approach and are less impacted by short-term price fluctuations.

Also read:

Bitcoin (BTC) Price Hit $200,000 – Scenario by Standard Chartered

Looking Ahead: Bitcoin’s Path to New Heights

Bitcoin’s journey to $100,000 is not without its challenges. The ongoing uncertainty in the global economy, regulatory concerns, and fluctuations in market sentiment could all impact the trajectory of Bitcoin’s price. However, several factors provide a solid foundation for optimism. 

The increased adoption of Bitcoin ETFs, its growing independence from traditional markets, and the continued accumulation by institutional players all point to a potential bull run in the near future.

BTC to USDT Bitrue

Furthermore, Bitcoin’s growing status as a digital store of value, especially in light of recent gold price stagnation, could position it as a leading asset in the digital economy. 

As more investors recognize Bitcoin’s potential for long-term growth, its price could break past the psychological barrier of $100,000, making new all-time highs a reality by May 2025.

Also read:

Top Altcoins to Watch as SoftBank and Tether Back $3B Bitcoin Fund and BTC Eyes $100K

Bitcoin Price (BTC), Market Cap, Price Today & Chart History

Bitcoin (BTC) Price Today

How to buy Bitcoin (BTC)

FAQs

What is driving Bitcoin's recent price surge?

Bitcoin's recent rally is fueled by favorable macroeconomic conditions, including easing import tariffs, strong corporate earnings, and significant inflows into Bitcoin ETFs.
 

What does Bitcoin’s decoupling from the S&P 500 mean?

A lower correlation with the S&P 500 indicates Bitcoin is increasingly viewed as an independent asset, suggesting growing investor confidence in its potential for long-term growth.
 

How does institutional interest affect Bitcoin's price?

Institutional investors, who typically focus on long-term accumulation, have shown increased interest in Bitcoin, helping to support its price and potentially push it above $100,000.
 

Will Bitcoin reach $100,000 in May 2025?

While several factors, including strong institutional interest and increasing adoption, point to a potential price surge, external market conditions and regulatory hurdles could impact Bitcoin’s path to new all-time highs.