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Bitcoin ETF inflows hit $3.1 billion, driving price surge

Coin WorldSunday, May 4, 2025 6:07 am ET

1min read

BiyaPay's analyst has predicted that Bitcoin could reach an all-time high in May, potentially surpassing the $100,000 resistance level. This forecast is based on several key factors driving the current market dynamics. Institutional funds have been pouring into Bitcoin ETFs, with net inflows reaching $3.1 billion from April 20th to 26th, setting a new weekly record. BlackRock's BIT fund has surpassed its gold ETF in size, becoming a primary channel for traditional funds to enter the Bitcoin market. Standard Chartered Bank has noted that Bitcoin is increasingly being seen as a new safe haven asset, replacing gold, and this shift is creating a significant ETF fund suction effect.

Historically, Bitcoin has experienced substantial price increases 12-18 months after its halving events. Following the 2020 halving, the price surged by 536%. Analysts predict that the peak of the current cycle could occur in May 2025, with a target price of $156,000. If Bitcoin breaks through the $100,000 mark in May, it could trigger a market-wide FOMO (Fear Of Missing Out) sentiment, accelerating the rally.

Additionally, the weakening of the U.S. dollar and risks associated with U.S. Treasury bonds are boosting Bitcoin's safe-haven demand. In early April, market volatility spiked due to rumors about tariff policies, highlighting Bitcoin's sensitivity to macroeconomic risks. The derivatives market is showing signs of differentiation, with retail funding rates becoming more cautious. However, the two-month futures premium has risen to 6.5%, and institutions continue to accumulate Bitcoin. microstrategy, for instance, increased its Bitcoin holdings by 15,000 BTC during the week at an average price of $92,700, demonstrating long-term confidence in the asset.

Technical independence has also strengthened, with Bitcoin's correlation with the S&P 500 dropping to 29%, enhancing its "digital gold" properties. If ETF inflows continue, Bitcoin may break through its current accumulation phase. Conversely, if ETF funds shift to outflows, it will test the market's resilience. Analysts advise investors to focus on on-chain data and institutional trends to avoid chasing prices with high leverage. The market is currently awaiting validation of the key May window, where institutional and cyclical dual forces may reshape the cryptocurrency valuation system.

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