Mike Smith
8 days ago
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The world's main cryptocurrency entered May 2025 with strong bullish momentum. Over the past 30 days, Bitcoin has strengthened its position by almost 14%, reducing the distance to the psychologically important $100,000 mark to a minimum of 6.3%.
The market is showing signs of recovery after a difficult period. Particularly noticeable are the changes in the indicator of apparent demand for BTC, which for the first time in two months has been steadily in the positive zone. Over the past month, this indicator reached the level of 65,000 BTC, which means a decisive rebound from the March minimum of -311,000 BTC.
The turning point occurred on April 24, when apparent demand for Bitcoin moved into the positive zone and remained there for six days in a row. However, the current indicators are still below the peak values of last year.
Analysts note that the recent rally is likely driven primarily by existing holders rather than fresh capital inflows. A sustained move higher would require a synchronous increase in both demand and momentum.
Institutional investor activity via US spot BTC ETFs remains relatively subdued. Since late March, daily inflows have fluctuated between -5,000 and +3,000 BTC, significantly lower than the levels seen in late 2024, when daily purchases often exceeded 8,000 BTC.
However, the first signs of institutional interest are already visible – inflows into ETFs have begun to gradually increase. A return to previous, higher levels of investment activity would be required for a sustainable rally to develop.
Tracy Jin, COO of MEXC, notes the changing role of Bitcoin in the global financial system: "BTC is increasingly being used as a hedge against inflation and the traditional financial model. Its liquidity, scalability, programmability, and global availability create a reliable modern alternative to traditional financial instruments for many corporations."
According to Jin, the cryptocurrency has a chance to reach the $150,000 mark this summer. The expert believes that the $95,000 level will be the launching pad for overcoming the $100,000 barrier in the coming days.
Notably, Bitcoin has demonstrated enviable resilience amid macroeconomic instability, including the turmoil caused by the Trump administration's trade tariffs. This quality further enhances its appeal as an alternative asset class.
