Bitcoin Could Hit New All-Time Highs in May — Here’s Why

Bitcoin Shows Strength in April

Between April 20 and April 26, Bitcoin rose by 11%, staying close to its two-month high of around $94,000. This increase came after two key events:

• The Trump administration signaled a possible easing of import tariffs.
• Big U.S. companies reported strong first-quarter earnings.

These events helped boost overall investor confidence. 

Spot Bitcoin ETFs Attract Huge Investments

One major reason for optimism is the strong capital inflow into spot Bitcoin ETFs. From April 20 to 25, these ETFs received a record $3.1 billion in net inflows.

This shows rising institutional interest, which often leads to long-term price gains.

Mixed Signals from Derivatives Market

Despite positive price movement, some data from the derivatives market points to caution. On April 26, funding rates for perpetual Bitcoin futures turned sharply negative. This is rare during a bull market.

Here’s what that means:

• Positive funding rate: Buyers are in control.
• Negative funding rate: Sellers dominate.

This reversal suggests retail traders expected a price drop. However, Bitcoin kept climbing, and over $450 million in short positions were liquidated since April 21.

Stock Market Rally Helps, But Bitcoin is Decoupling

Part of the recent rise in Bitcoin can be credited to the stock market. The S&P 500 went up 7.1% for the same week. But the correlation with traditional assets for Bitcoin is fading.

Currently, the 30-day correlation between the S&P 500 and Bitcoin is 29%, significantly lower than the 60% that was reported previously in April.

This lower correlation suggests Bitcoin is becoming more independent from stock market movements.

Gold’s Weakness Boosts Bitcoin’s Image

Gold hit a high of $3,500 on April 22 but didn’t hold that level. This gave Bitcoin a chance to shine. Many investors now see Bitcoin as a stronger “digital gold,” especially if it continues to stay above $90,000.

Institutional Traders Show Growing Optimism

Retail traders might still be cautious, but institutional players seem more bullish. Data from monthly Bitcoin futures contracts shows a different picture. These contracts avoid sudden funding changes, so they better reflect long-term sentiment.

As of April 26, the two-month futures premium (also called the basis rate) hit a seven-week high of 6.5%. This is within the neutral range (5%–10%) but trending upward.

Could $100,000 Be Next?

Here are the key takeaways:

• Bitcoin is holding strong above $90,000.
• Spot ETFs are seeing record inflows.
• Institutional investors are becoming more active.
• Short sellers are getting liquidated at scale.

Although some warning signs remain, the overall picture is bullish. If this momentum continues, Bitcoin could hit $100,000 or more in May. Traders and investors should watch closely — the next few weeks may be crucial.