Bitcoin’s Recent Dip: A Momentary Setback With 2025 Highs Possible

Bitcoin’s price recently fell to $94K after nearing $97,900 earlier this month. Despite institutional interest, some traders are disappointed that price gains haven’t followed. BTC dominance has increased to 70%, reflecting growing interest even amidst new token launches. A significant uptick in Bitcoin futures also indicates strong institutional backing, yet upcoming investor sentiment and trade relations remain uncertainties as the market looks ahead to potential peaks in 2025.

Bitcoin saw a price dip recently, slipping by 4.3% after almost hitting $97,900 on May 2, coming to rest at around $94,000 on May 5. This downturn has left some traders feeling a bit underwhelmed, particularly since institutionally driven inflows haven’t had the staying power to keep prices solidly bullish. Despite this, there are good indicators pointing towards a potential all-time high for Bitcoin in 2025, so it’s not all doom and gloom.

In a notable development, Bitcoin’s market dominance has surged to 70%, marking its highest since January 2021. This rise in BTC’s share comes as many new tokens launch, including top players like SUI and Toncoin (TON). Such dominance signals a shift; riskier altcoins might not look as appealing to fresh investors diving into the market.

Particularly noteworthy is the $4.5 billion net inflow into Bitcoin ETFs between April 22 and May 2. This influx, paired with heightened interest in Bitcoin futures, highlights how institutional adoption is on the rise. Whether institutions are leveraging positions for protection against drops or bullish outcomes is still up for debate, but the demand is certainly there.

According to data from CoinGlass, open interest in the Bitcoin futures market now stands at 669,090 BTC, which is a 21% uptick since early March. Even as Bitcoin’s price fell below $75,000 in April, demand for leveraged positions hasn’t wavered. Just the BTC futures open interest on the Chicago Mercantile Exchange (CME) surpasses $13.5 billion, indicating solid institutional backing.

However, Bitcoin’s efforts to reclaim the elusive $100,000 mark face some challenges. Traders who jumped in following the US Strategic Bitcoin Reserve bill announcement on March 6 are finding their hopes dashed, as there’s been little clarity from the government about its BTC holdings or future plans. Additionally, attempts at introducing state-level Bitcoin bills have repeatedly hit stumbling blocks, including a recent setback in Arizona.

Despite these complications, the firm Strategy, led by Michael Saylor, is doubling down on Bitcoin. They’ve just purchased 1,895 BTC and announced plans to significantly boost their capital for further acquisitions. Over the last few months, gold has outperformed, cementing its status as a haven asset against the economic backdrop, whereas Bitcoin’s pullback is raising eyebrows regarding its touted uncorrelation with traditional markets.

For any hope of Bitcoin setting a new record high, many analysts argue that an improvement in US-China trade relations is necessary. Tariffs and trade tensions have created a bearish atmosphere among investors, suppressing risk appetite. But, the groundwork could be laid for a BTC bull run above the $100,000 threshold.

As this story continues to unfold, it’s essential to note that the insights provided here are for informational purposes and should not be interpreted as investment advice. The author’s opinions here don’t necessarily align with those of Cointelegraph or any affiliated entities.