Bitcoin has once again captured the attention of investors as its price resumed an upward trajectory, crossing vital resistance levels. As of May 3, 2025, Bitcoin (BTC) was trading around $96,500, marking an impressive increase of 30% from its lowest numbers in April. Analysts are buzzing with excitement as they highlight three compelling reasons why Bitcoin may soon hit a new all-time high.
One of the primary factors fueling Bitcoin’s bullish sentiment is the notable decrease in the supply of Bitcoin available on exchanges. Currently, the supply has fallen to 1.42 million BTC, the lowest it has been in over six years. This sharp decline indicates that investors are holding onto their assets rather than selling.
- Supply on exchanges peaked at 3.21 million BTC in 2018.
- Conversely, Bitcoin held outside of exchanges has surged to 18.43 million BTC.
This trend suggests a potential supply squeeze looming on the horizon, as demand continues to grow. Major holders, such as Michael Saylor’s strategy which controls over 2% of Bitcoin’s total supply, are still buying, indicating a long-term bullish outlook.
The second factor indicating an impending surge in Bitcoin prices is the rising demand from both retail and institutional investors. Data shows that Bitcoin exchange-traded fund (ETF) inflows have remained robust since their inception in January 2024, with only four months of outflows recorded to date. This consistent influx signifies increasing institutional investment interest.
- Bitcoin ETFs have collectively attracted over $40 billion in assets.
- Some prominent funds include Blackrock’s IBIT with $60 billion and Fidelity’s FBTC with $20 billion.
Moreover, international interest is anticipated as countries look to diversify their reserves away from the U.S. dollar. This growing demand underscores why many analysts remain optimistic about Bitcoin’s future performance.
From a technical standpoint, Bitcoin is demonstrating robust momentum, reinforcing the bullish outlook. BTC has successfully maintained above the ascending trendline established by the lowest price points since August last year. Key resistance levels, such as $88,690, have been broken, further supporting positive sentiment in the market.
Bitcoin’s ability to stay above its 50-day and 100-day Exponential Moving Averages suggests that there is potential for further upward movement. Analysts predict that with these positive technical indicators, Bitcoin could soon surpass the $100,000 mark on its way to reaching unprecedented highs.
In conclusion, the combination of declining Bitcoin supply on exchanges, strong retail and institutional demand, and constructive technical indicators all paint a promising picture for Bitcoin as we move further into 2025.
