Bitcoin (BTC) has surged past the $96,000 mark for the first time in the last five months. This price hike indicates a turnaround within the cryptocurrency market. The last time Bitcoin was being traded at these levels was back in November 2024, when the prices of the token had hit the $100,000 mark for a short period of time after which the token then experienced a prolonged correction period.
What Triggered Bitcoin’s Earlier Downturn?
The earlier downturn was said to be triggered by various factors. Institutional investors had pulled out BTC worth billions from US Spot Bitcoin ETFs in early 2025. This was because there was an increased economic uncertainty and the trade tensions between US-China had escalated that affected the cryptocurrency market significantly.
These situations led to investors shifting to safer assets and there was a large scale profit-taking by whales and short-term traders. These actions further led to decreased price of the token. The retail sentiment also experienced a downward spiral, the crypto Fear-Greed Index had dropped down to 10 indicating extreme fear which also caused further selling.
Changed Market Sentiments
As of today, May 1, 2025, the Fear and Greed Index has increased to 53, which indicates a neutral territory with reduced risk of panic-driven sell-offs.
The recent 90-day pause on the US import tariffs has somehow managed to restore confidence among the institutional investors. These investors have poured in over $3 billion back into the spot Bitcoin ETFs in April month itself.
Then there are corporate giants that utilize Bitcoin as a corporate treasury reserve asset, such as MicroStrategy have also resumed their large-scale Bitcoin purchases. Exchange outflows also indicate that the investors are moving their holdings to long-term storage, which is one of the major signs of bullish sentiment.
Metaplanet To Enter US Market
Moreover, Metaplanet, a Japanese investment firm has announced its plan to enter the US market by revealing a wholly-owned subsidiary, Metaplanet Treasury Corp., in Miami, Florida. The decision was approved by its board of directors and this was disclosed via an official statement and post by CEO Simon Gerovich on social media platform X.
According to the post, the subsidiary will launch with $10 million in initial capital and it aims to raise around $250 million to push the firm’s Bitcoin treasury strategy and expand across the US. This move by the company also indicates a growing institutional confidence in Bitcoin’s long-term potential.
Price Prediction
At press time the price of the token stands at $96,013.44 with an uptick of 0.9% in the last 24 hours as per CoinGecko.
Analysts believe that if the bullish outlook persists, the price of the token might trade between $97,000 and $100,000 by early to mid-May 2025. Technical indicators point a strong support at $91,000-$92,000 and a resistance around $97,000. Some analysts also believe that the price could hit $104,000 mark by the end of the month if the volume and sentiment remains positive.
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