Bitcoin Could Reach New All-Time Highs as Early as May
Bitcoin experienced a significant surge in the last week of April, increasing by 11% and surpassing the $94,000 mark. Several key factors contributed to this rise, including the easing of trade tariffs, strong corporate earnings reports, and a record-breaking inflow of investments in spot Bitcoin ETFs, which saw $3.1 billion poured in over just five days.
Despite some indications of a short-term correction within the derivatives markets, Bitcoin has managed to maintain its position near two-month highs, signaling continued strength in its performance.
An important development is the decreasing correlation between Bitcoin and the S&P 500 stock index, which has dropped to 29%. This decreasing correlation highlights Bitcoin’s growing independence as a distinct asset class, separate from traditional equities. Meanwhile, retail traders are showing an increased demand for bearish positions, contrasting with the optimistic outlook of institutional investors. These institutional players are actively accumulating long-term positions through futures contracts, reflecting their bullish confidence in Bitcoin’s future.
Analysts suggest that if the heightened interest from major market participants persists, Bitcoin could exceed the $100,000 level within the upcoming weeks. Such a milestone would mark a new all-time high, potentially triggering further growth fueled by increased institutional adoption and favorable market dynamics.
