Bitcoin’s price declined 4.3% 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, certain traders expressed disappointment 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 reached 70%, marking its highest level since January 2021. This increase has occurred 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 become less attractive to new market participants.
Between April 22 and May 2, spot Bitcoin ETFs reported net inflows totaling $4.5 billion. Simultaneously, the rising demand for Bitcoin futures indicates expanding institutional involvement, whether investors are utilizing leveraged positions 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.
Strategy Expands BTC Acquisition Plans Amid Global Trade Tensions
Multiple factors have contributed to Bitcoin’s difficulty in regaining the $100,000 mark. Traders who invested ahead of the U.S. have expressed growing frustration. 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.
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, investors had expressed doubts 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.
For Bitcoin to achieve a new all-time high, investors will likely require reassurance regarding improved trade relations between the U.S. and China, as tariffs have dampened overall risk sentiment. However, analysts believe the essential conditions for a BTC rally surpassing $100,000 have already been established.
