Bitcoin remains above $94K, driven by institutional investments and strong market confidence. Major players continue accumulating Bitcoin, with capital inflows into ETFs highlighting demand. Bitcoin’s market share has hit 70%, making altcoins less attractive. Predictions suggest Bitcoin could potentially reach between $155,000 and $250,000 in the long term, aided by its historic correlation with gold.
Bitcoin has managed to stay above the crucial $94,000 mark, demonstrating a robust performance despite some fluctuations over the past few days. Institutional interest is driving this rally, even as it recently dipped near $93,500 following a peak of around $97,900 earlier this month, on May 2. Analysts note that several factors are currently playing in favour of Bitcoin’s future.
Institutional investors continue to strategically accumulate Bitcoin, underscoring a strong sense of market confidence. For instance, Michael Saylor’s company has recently acquired nearly 1,900 BTC, reflecting a major capital increase to fund continued Bitcoin purchases. Their portfolio now totals about $84 billion, signalling a solid long-term trust in Bitcoin’s intrinsic value, which is crucial for sustained price growth.
Recent capital inflows have been impressive as well. Between April 22 and May 2, Bitcoin ETFs recorded nearly $4.5 billion in net investments, amidst a total market inflow of around $18.77 billion. These major sums, diving into both Bitcoin and Ethereum, suggest a solid foundation for the price uptick, as recent on-chain data suggests an alignment with current monetary trends.
Diving deeper into Bitcoin’s technical details, 88% of its supply is currently profitable, with most losses observed in buyers from the $95,000 to $100,000 duff. This indicates a significant shift in investor sentiment, especially given the usual norm of 75%. Notably, the Market Value to Realised Value (MVRV) Ratio has returned to its historical mean, suggesting that the groundwork for future increases is being laid.
Bitcoin’s dominance has surged to a notable 70%, a figure not witnessed since January 2021. This commanding market share means that many new investors are shying away from alternative cryptocurrencies, despite recent launches of numerous projects. Interestingly, open interest in Bitcoin futures has also risen by 21% since early March, making it clear that institutional participation is increasing significantly.
When observing correlations between Bitcoin and gold, some analysts speculate that Bitcoin could potentially hit between $155,000 to even $250,000 in the long term. Historical trends show that Bitcoin often outpaces gold during uptrends; if those trends hold, we could witness some eye-popping returns. Currently priced around $94,400, this projection is backed up by significant institutional investments and ongoing positive market sentiment.
While challenges remain, such as global economic concerns and trade tensions, the fundamental indicators for a sustained Bitcoin bull run are gathering momentum. The road to achieving new all-time highs could still very well be on the horizon, particularly with the strong institutional support in place and encouraging on-chain data surfacing.
