FameEX Hot Topics | New Bitcoin Price Records Expected in May

Bitcoin surged 11% between April 20 and April 26, holding firm near a two-month high around $94,000. This impressive rally was fueled by growing optimism after the Trump administration signaled potential tariff reductions, combined with stronger-than-expected corporate earnings reports. Despite ongoing economic uncertainty and market volatility, Bitcoin’s ability to maintain these gains highlighted its resilience and reinforced investor confidence in the broader bullish trend.

Adding further momentum, spot Bitcoin exchange-traded funds (ETFs) recorded an unprecedented $3.1 billion in net inflows over a five-day stretch. However, the derivatives market reflected a more cautious tone. Perpetual Bitcoin futures contracts—popular with retail traders for their tight tracking of spot prices—showed unexpected bearish pressure. Sharp negative funding rates on April 26, highly unusual during bullish phases, indicated stronger selling demand. This development raised some doubts about Bitcoin’s short-term ability to break through the psychologically important $100,000 level.

At the same time, broader markets painted a contrasting picture. The S&P 500 posted a 7.1% weekly gain, fueled primarily by pre-trade war earnings optimism. Yet Bitcoin’s price action showed signs of decoupling from equities. President Trump’s comments on April 25, suggesting progress with China would depend on significant concessions, introduced caution into the equity markets. Meanwhile, Bitcoin’s 30-day correlation with the S&P 500 fell sharply to 29%, compared to 60% earlier, signaling an increasing independence in Bitcoin’s price movements.

Gold’s recent performance also provided a noteworthy backdrop. After reaching a record high of $3,500 on April 22, gold prices struggled to hold momentum, retreating soon after. In contrast, Bitcoin consistently stayed above $90,000, reinforcing its emerging reputation as a resilient alternative asset. This development strengthened the "digital gold" narrative among investors, suggesting that Bitcoin’s growing role as a hedge against economic uncertainty could support further price appreciation if sentiment remains strong.

Despite the cautious tone from retail traders, who exhibited heightened demand for bearish positions in perpetual futures, professional sentiment painted a more optimistic picture. On April 26, the two-month Bitcoin futures premium climbed to a seven-week high at 6.5%. While still within neutral territory, the upward trend suggests that institutional accumulation could help propel Bitcoin past the $100,000 milestone in the near future.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.