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

Bitcoin’s recent price action suggests that a new all-time high could be closer than many investors anticipate. Despite mixed market signals, underlying data points to growing strength, especially among institutional players.

Bitcoin

BTC

$94,027

gained 11% between April 20 and April 26, reaching a two-month high and solidifying bullish momentum around the $94,000 level. This rally was driven by both macroeconomic optimism and strong crypto-native demand.

Heavy Liquidations Fuel Bitcoin’s Return to $95K

Some of Bitcoin’s surge can be attributed to massive liquidations of bearish positions.

Retail traders favor perpetual Bitcoin futures contracts due to their tight tracking of spot prices. Typically, a positive funding rate indicates buyers are in control. However, Bitcoin saw a sharp negative funding rate on April 26, suggesting strong selling pressure — highly unusual in a bull market.

Yet, this bearish bet backfired. Since April 21, over $450 million worth of BTC short positions were liquidated as Bitcoin’s price climbed, forcing sellers to buy back and fueling further upward momentum.

Bitcoin’s Independence Grows as Correlation With Stocks Weakens

While the S&P 500 gained 7.1% last week — its best performance of the year — Bitcoin’s rally increasingly seems independent of equities.

The 30-day correlation between Bitcoin and the S&P 500 dropped to 29%, compared to over 60% just a month ago. This weakening relationship suggests Bitcoin is maturing into an independent asset class, less tied to broader equity market movements.

Gold’s struggles after reaching its $3,500 all-time high on April 22 also highlighted Bitcoin’s growing appeal. Unlike gold, Bitcoin maintained strength, reinforcing its “digital gold” narrative among investors.

ETF Inflows and Institutional Demand Signal Bullish Outlook

Confidence in Bitcoin’s trajectory was further boosted by a record $3.1 billion in spot Bitcoin ETF inflows over five days, showcasing strong institutional interest.

Meanwhile, professional traders continue to position for higher prices.

The two-month Bitcoin futures premium (basis rate) rose to 6.5% — its highest level in seven weeks — indicating a healthy appetite for long-term bullish bets.

Although some retail traders remain cautious, as seen in volatile funding rates, the institutional buying pressure could be sufficient to drive Bitcoin toward — and possibly beyond — the $100,000 mark in the near term.

Conclusion

Despite mixed signals in the derivatives market, Bitcoin’s resilience above $90,000, declining correlation with stocks, historic ETF inflows, and growing institutional bullishness create the perfect setup for new all-time highs as early as May.