Bitcoin has recently hit a two-month high, nearing $99,000, leading to increased market optimism about the cryptocurrency breaking past the $100,000 barrier soon. Significant capital inflows have been observed, particularly from ETFs, while legislative support grows. Analysts suggest minimal resistance above $95,000, fuelling bullish sentiment.
Bitcoin (BTC) has surged to nearly $99,000, the highest it’s been in two months, and the market is buzzing with optimism. Analysts believe a breakout past the $100,000 mark could be on the horizon. In fact, the cryptocurrency’s value has jumped by an impressive 31.8% over the last month, bouncing back sharply from its lows seen earlier in April.
In the early hours of trading in Asia, Bitcoin saw its value peak at $99,388. As of the latest updates, the price adjusted slightly lower to around $98,874, reflecting a minor 0.3% decline in the past hour. But despite that drop, the sentiment in the market remains hopeful. Social media reactions, especially on X (formerly Twitter), indicate a positive outlook. Anthony Pompliano tweeted, “Bitcoin is knocking on the door of $100,000 again. Tick, tock…”.
Earlier predictions from Bitfinex suggested that should Bitcoin stay above $95,000, it’s likely to revisit its all-time highs. That scenario seems to be unfolding, as Bitcoin continues to trade well above that point. Moreover, recent analysis indicates that Bitcoin has effectively moved past a price point that was previously dominated by high-leverage short positions. As one analyst pointed out, there doesn’t appear to be major resistance until the $100,000 mark.
In the latest weekly newsletter from Glassnode, it was noted that Bitcoin’s realised market cap hit a record $889 billion, with a 2.1% increase over the month. This surge is a telltale sign of rising investor confidence and increased capital flows into Bitcoin. Glassnode reported a significant influx into Bitcoin investment through ETFs in the last fortnight, exceeding $4.6 billion. They highlighted that total assets under management within US spot ETFs have amassed over 1.171 million BTC, just shy of breaking previous records.
These inflows have largely turned around previous outflows, signalling robust demand for Bitcoin. In their analysis, Glassnode concluded that the outpour of ETF capital and enhanced investor confidence is contributing to a much stronger Bitcoin market.
Additionally, a report from CryptoQuant has indicated a notable increase in stablecoin deposits to Binance, with nearly $1 billion coming in on May 6, the largest single-day tap since April. According to them, rising stablecoin inflows typically suggest that investors are gearing up to enter the market, pushing assets onto exchanges in anticipation of buying.
In contrast, recent disclosures from Binance revealed a decline in the reserves of several major cryptocurrencies, including Bitcoin, Ethereum (ETH), BNB, and Solana (SOL), while Tether (USDT) reserves saw a 2.6% rise. This indicates an increase in liquidity, which allows traders to prepare for future market activities. Interestingly, the dominance of Tether (USDT.D) has also dipped, suggesting investors are reallocating funds from stablecoins to other cryptocurrencies, potentially fuelling further market gains.
On a legislative front, there has been notable progress as two Bitcoin-reserve bills have passed, with several others making headway through the system. This signals a growing acceptance of Bitcoin among institutions and governments alike.
As Bitcoin hovers just below the $100,000 threshold, investors are on the lookout to see if it can maintain this momentum or if obstacles will emerge. With conditions seemingly favouring the crypto market, the community holds its breath for what may well become a key milestone in Bitcoin’s journey.
