FameEX Hot Topics | Bitcoin Could Reach New All-Time Highs in May

Bitcoin surged 11% between April 20 and April 26, holding steady near a two-month high around $94,000. This rally was fueled by optimism over the Trump administration’s signals of potential tariff reductions and robust corporate earnings reports. Investor sentiment strengthened as Bitcoin maintained these gains, showcasing resilience amid broader economic uncertainty and market volatility.

Further boosting confidence, spot Bitcoin exchange-traded funds (ETFs) saw a record $3.1 billion in net inflows over five consecutive days. Despite this bullish momentum, caution emerged in the derivatives market. Perpetual Bitcoin futures contracts, favored by retail investors due to their close alignment with spot prices, reflected unusual bearish pressure. Sharp negative funding rates recorded on April 26 hinted at stronger selling demand—an anomaly during bull markets—leading some to question Bitcoin’s ability to reach the $100,000 mark.

Interestingly, this volatility unfolded alongside a strong 7.1% weekly gain in the S&P 500, although the factors influencing the two markets appear to be diverging. While stock market gains were driven by pre-trade war earnings reports, Bitcoin’s trajectory increasingly decoupled from equities. Trump’s remarks on April 25, suggesting that progress with China hinged on concessions, also injected a note of caution. Currently, Bitcoin’s 30-day correlation with the S&P 500 stands at just 29%, far below the 60% correlation seen earlier, signaling a shift toward more independent price action.

Meanwhile, gold’s retreat after reaching a record $3,500 on April 22 offered another critical backdrop. As gold struggled to sustain its momentum, Bitcoin’s consistent hold above $90,000 bolstered its reputation as a resilient alternative asset. This strengthened the “digital gold” narrative for some investors, suggesting that Bitcoin’s growing appeal as a hedge could support further gains if confidence remains intact.

Despite retail traders showing higher demand for bearish leverage through perpetual futures, professional sentiment told a different story. On April 26, the two-month Bitcoin futures premium rose to a seven-week high at 6.5%, still within neutral levels but trending positive. While retail traders may stay cautious, strong institutional accumulation could still drive Bitcoin’s price above $100,000 in the near term.

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