Crypto Markets Roaring Once More?
Bitcoin Market Showing Positive Trends in May, Predictions Point Towards Potential $100K Milestone
The trends in Bitcoin's price fluctuations after the pandemic shock in April hint at a repeating pattern. You know, like the wild ride back in the days of Trump's second term and the tariff chaos.
Financial markets have begun to dip their toes back in again, abandoning their fear-driven cash withdrawals during Trump's reign. Key players in the Bitcoin economy seem to be spotting similarities with those turbulent times when Trump started putting pressure on Fed Chair Jerome Powell for interest rate cuts.
You can almost imagine the Bitcoin price skyrocketing a whopping twelve times its market value in less than two years during that period. That's an average annualized return of 550%, which makes the S&P 500 Index's humble 10% returns since 1957 look like child's play.
It's no wonder institutions can't get enough of the original blockchain cryptocurrency. Heck, even Peter Schiff, the self-proclaimed Doom Doctor of Bitcoin, went ahead and did a complete 180 on Bitcoin in a tweet storm on [redacted day]. He even begged his followers to send him some Bitcoin in a bizarre about-face.
For those keeping up with Schiff's anti-crypto ramblings, this is like stepping into an alternate universe.
Here are four reasons why the little currency is looking mighty fine for crypto-bulls in May.
1. Wall Street's Unquenchable Thirst for Bitcoin ETFs
The entry of institutional investors, thanks to Bitcoin ETFs, has been a major driver behind Bitcoin's rising price throughout 2024. These Big Dogs also shoved a boatload of capital into companies like MicroStrategy (previously Strategy) and Bitcoin miners in 2023, signaling dormant demand.
With stock traders now forming a tidal wave in the crypto economy, Bitcoin ETF inflows and outflows have a significant impact on the asset's price. Stock exchanges flipped like crazy bullish on BTC in April.
From April 17 to April 29, Bitcoin ETFs enjoyed uninterrupted daily inflows, sometimes getting close to a billion dollars a day.
By April 28, Bitcoin ETFs tallied $3.06 billion in total weekly inflows, the second-highest on record.
Bitwise's chief investment officer Matt Hougan wrote a note to investors, stating he expects ETF flows to keep growing sustainably.
"I still anticipate Bitcoin ETFs to set a new record for net inflows this year," Hougan declared, "despite taking in 'just' $3.7 billion so far in 2025, compared to $35 billion in 2024."
2. Corporations Hoarding Their Share of Bitcoin
It's not just institutions piling up Bitcoin. Corporations continue to add fuel to the global race to stockpile the digital currency. This restricted supply on exchanges and further boosts the price.
The Strategy crew started this hoarding trend back in May 2023 to bolster their balance sheets. You see, it works as an inflation shelter, macro hedge, and a way to amplify returns on investment in good times.
On April 30, California-based health care tech company Semler Scientific announced a purchase of 165 BTC for around $15.7 million. Semler provided an update on April 29, revealing:
"As of April 29, 2025, Semler Scientific held 3,467 bitcoins, acquired for an aggregate $306.1 million (including fees and expenses) and had a market value of $330.6 million..."
When Semler first started grabbing Bitcoin in May 2023, its stock spiked 38%.
Meanwhile, Strategy announced another billion-dollar Bitcoin purchase on Apr 28. This takes their holdings to 553,555 BTC purchased for an average of $68.5K per Bitcoin.
3. Arizona Hops on the Bitcoin Bandwagon
It’s not just the US where corporations are stockpiling Bitcoin. Following the White House initiative to create a national reserve, several states are exploring the idea of adding Bitcoin to their books.
In April, Arizona joined the game by pushing for a state Bitcoin reserve through legislation. All that's left is for the governor's signature to make it a law.
"Crypto and Bitcoin have a massive fanbase nationwide and in Arizona," said Arizona state Sen. Wendy Rogers, who co-sponsored the bill. "They are incredibly popular with the youth and independents."
This is the first state legislative approval to establish a Bitcoin reserve. While several states are seriously considering it, the Copper State might just set off a wave in other statehouses.
4. Bitcoin Whales Go on a Shopping Spree
The crypto markets wouldn’t be the same without their giant traders. Big players moving the markets have historically foreshadowed future price movements, given their unique motivations and resources to make smart bets.
As a result, when whales decide to load up on Bitcoin, it sends prices up further, creating a self-fulfilling prophecy.
In the final two weeks of April, major investors bought a staggering $4 billion worth of Bitcoin. That strong support from both institutional and retail investors gives the cryptocurrency's future price direction a bullish outlook.
- Amidst the surging interest, Peter Schiff, a renowned critic of Bitcoin, surprisingly expressed his interest in the original blockchain cryptocurrency, signaling a shift in his stance.
- Wall Street's insatiable appetite for Bitcoin ETFs has significantly influenced Bitcoin's price throughout 2024, with inflows reaching close to a billion dollars per day in April alone.
- Institutions and big industry players, including MicroStrategy, have poured billions of dollars into Bitcoin, some even stockpiling the cryptocurrency as a hedge against inflation or a method to amplify returns.
- The state of Arizona has shown a keen interest in Bitcoin, proposing a bill to establish a state Bitcoin reserve, potentially inspiring other states to follow suit.
- Bitcoin whales, prominent figures in the crypto market known for their significant influence, have been buying substantial amounts of Bitcoin, which could signal a positive forecast for the cryptocurrency's future price direction.
- As the average annualized return on Bitcoin reached an astounding 550% during the period surrounding Trump's second term, some predict that if similar conditions occur by 2025, Bitcoin could reach a value surpassing its current market value, making it an intriguing investment opportunity in the realm of technology and finance.
