A 4.3% decline in Bitcoin’s price has been recorded over the past three days, following an approach to nearly $97,900 on May 2. Although the $94,000 level demonstrated some resilience on May 5, disappointment has been expressed by certain traders over the inability of strong institutional inflows to sustain upward momentum. Nevertheless, various positive indicators continue to support the possibility of Bitcoin reaching a new all-time high in 2025.
The week began with a correction in Bitcoin’s price, yet sustained interest from institutional investors has kept the $100,000 target viewed as attainable.
Bitcoin’s dominance within the broader cryptocurrency market has been elevated to 70%, marking its highest level since January 2021. This increase has been observed despite the introduction of numerous new tokens, including several among the top 50 such as SUI, Toncoin (TON), PI, Official Trump (TRUMP), Bittensor (TAO), Ethena (ENA), and Celestia (TIA). As a result, riskier altcoins have been rendered less attractive to new participants in the market.
Between April 22 and May 2, net inflows totaling $4.5 billion were reported by spot Bitcoin ETFs. Simultaneously, the rising demand for Bitcoin futures has been seen as a sign of expanding institutional involvement, whether leveraged positions are being utilized for hedging against losses or for making optimistic market wagers.
As reported by CoinGlass, total open interest in Bitcoin futures markets has climbed to 669,090 BTC, reflecting a 21% rise since March 5. Despite Bitcoin’s price falling below $75,000 in early April, interest in leveraged positions has remained resilient. On the Chicago Mercantile Exchange (CME) alone, open interest in BTC futures has surpassed $13.5 billion, underscoring strong institutional involvement.
Multiple factors have been identified as reasons behind Bitcoin’s difficulty in regaining the $100,000 mark. Growing frustration has been expressed by traders who invested ahead of the U.S. Strategic Bitcoin Reserve bill introduced on March 6, as the government has not yet revealed its BTC reserves or confirmed intentions for additional acquisitions. Furthermore, similar Bitcoin-related legislative efforts at the state level have consistently faced rejection, with the most recent failure occurring in the state of Arizona.
Strategy Expands BTC Acquisition Plans Amid Global Trade Tensions
During the last three months, gold has delivered stronger performance than most other assets, gaining 16%, while Bitcoin has dropped by 5% and the S&P 500 has fallen by 6.5%. This trend has cast doubt on the perception of Bitcoin as a non-correlated asset, as it has consistently struggled to separate itself from the S&P 500 amid escalating economic uncertainty. The ongoing global trade conflict has caused investors to lean toward fixed-income instruments and cash holdings.
Bitcoin’s recent decline to $94,000 has raised concerns, especially following the announcement by Strategy, a U.S.-listed firm headed by Michael Saylor, regarding its purchase of 1,895 BTC on May 5. This acquisition came after the company doubled its capital expansion strategy to support further Bitcoin investments. Previously, doubts had been expressed by investors about Strategy’s capacity to secure additional funding; however, the unveiling of an $84 billion plan on May 1 has helped alleviate some of those concerns.
In order for Bitcoin to achieve a new all-time high, reassurance regarding improved trade relations between the U.S. and China will likely be required by investors, as tariffs have dampened overall risk sentiment. However, the essential conditions for a BTC rally surpassing $100,000 are believed to have already been established.
