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Bitcoin is trading near its all-time high, driven by strong technical indicators and bullish market sentiment.
Standard Chartered Bank and major investors project Bitcoin could reach $200,000 by year-end.
The Strategic Bitcoin Reserve and regulatory clarity are boosting institutional confidence in cryptocurrency.
Bitcoin (BTC) is trading at approximately $105,600, reflecting a 3% increase over the past 24 hours. This surge positions Bitcoin just below its all-time high of $106,000, achieved in December 2024. The recent price movement is supported by a combination of macroeconomic factors, institutional interest, and technical indicators.
The Bitcoin price trajectory in May 2025 has been notably bullish. The cryptocurrency has broken out from a falling wedge pattern, a bullish formation that often precedes upward price movements. Additionally, Bitcoin has closed above its 200-day moving average, signaling a strong long-term uptrend. Key support levels are identified between $93,100 and $93,500, while resistance is anticipated around the $110,000 mark.
On-chain metrics further bolster this positive outlook. Approximately 88% of Bitcoin's circulating supply is currently in profit, indicating widespread investor confidence. Moreover, the Relative Profitability Level Ratio (RPLR) remains above 1.0, suggesting that the majority of holders are experiencing gains, which could encourage continued holding and reduce selling pressure.
Institutional interest in Bitcoin continues to grow. Notably, Anthony Scaramucci, founder of SkyBridge Capital, predicts that Bitcoin could reach between $180,000 and $200,000 by the end of 2025, citing increasing global adoption and the limited supply of Bitcoin as key factors. Similarly, Standard Chartered Bank projects a potential rise to $200,000, driven by institutional demand for inflation hedges and Bitcoin's role as a store of value.
Regulatory developments are also influencing market sentiment. The U.S. Congress is progressing with the Genesis Act, a bill aimed at regulating stablecoins pegged to fiat currencies. If passed, this legislation could strengthen institutional trust and drive broader crypto adoption. Additionally, the Trump administration's pro-crypto stance, including the establishment of a Strategic Bitcoin Reserve, underscores the growing acceptance of digital assets at the governmental level.
Also Read: Trump’s Strategic Bitcoin Reserve: All You Need to Know
Bitcoin's recent performance is also influenced by broader economic trends. Easing global tariffs and new U.S. trade agreements have contributed to a more favorable economic environment, boosting investor confidence in risk assets like cryptocurrencies. Furthermore, anticipation of potential U.S. interest rate cuts is encouraging investment in alternative assets, including Bitcoin.
The cryptocurrency's correlation with traditional financial markets is evolving. Analysts have observed Bitcoin's changing relationships with asset classes such as gold and equities, highlighting its potential as a diversified investment. This shift is attracting investors seeking alternatives to traditional assets amid economic uncertainties.
Also Read: Why is Dubai Leading in Crypto Investments?
Looking ahead, various analysts and institutions have provided optimistic price forecasts for Bitcoin. Bitfinex suggests that Bitcoin's price may approach $200,000 by mid-2025, with a minimum mid-year price around $145,000. BlackRock CEO Larry Fink has posited that Bitcoin could reach $700,000 if sovereign wealth funds allocate just 2–5% of their portfolios to the cryptocurrency. These projections underscore the potential impact of increased institutional investment on Bitcoin's price trajectory.
However, it's important to note that market volatility remains a characteristic of the cryptocurrency space. While the current trend is bullish, investors should remain cautious and consider the inherent risks associated with digital asset investments.
Bitcoin's price analysis for May 2025 indicates a strong bullish trend, supported by technical indicators, institutional adoption, favorable regulatory developments, and global economic factors. While optimistic forecasts suggest significant price appreciation, investors should remain aware of the potential for volatility and conduct thorough research before making investment decisions.
