Bitcoin Hits Record High 111,900 in May Amid Supply Drop

Bitcoin's price performance in May was robust, reaching a record high of $111,900. This surge has sparked speculation about the cryptocurrency's trajectory in June. Analysts are divided on whether Bitcoin will continue its upward trend or face a correction.

Bitcoin's price will likely continue doing well in June because of the soaring demand and falling supply. The supply of Bitcoin on exchanges has continued falling, moving from over 3.1 million in 2020 to 1.2 million today. More companies will likely continue acquiring Bitcoins this month, which will help boost its price. The risk, however, is that June is usually one of the worst months for Bitcoin because of the start of the summer season. The average Bitcoin return in June is usually minus 0.50%. The other risk is that the trade war between the US and other countries will continue, leading to more volatility. Also, the Federal Reserve may insist that it will not cut rates soon as inflation remains stubbornly high.

Technicals suggest that the BTC price has more upside to go this month as it has formed a cup-and-handle pattern, with the ongoing retreat being part of the handle section. This cup has a depth of about 32%, meaning that the target price is about $143,000. Bitcoin remains above the 50-day and 200-day Exponential Moving Averages (EMA). Therefore, the most likely scenario is where BTC price rises and hits at least $120,000 this month. A drop below the support at $100,000 will invalidate the bullish outlook.

According to one prediction, Bitcoin's value could increase to $136,708.19 in June 2025, with a floor of $117,330.64. Another forecast suggests that by June 29, 2025, the price could rise by 11.19% to $114,811. However, there are also indications that Bitcoin might experience a downturn in the coming weeks, with some analysts pointing to a potential drop to the $97,000-$99,000 range.

The bullish sentiment surrounding Bitcoin is supported by several factors. Exchange-traded funds (ETFs) and corporate treasuries are expected to bolster Bitcoin's uptrend in June, as uncertainty around tariffs persists. This support could help maintain Bitcoin's bullish momentum and drive it towards the $120,000 mark. However, there is also a possibility of a correction, with some analysts predicting a drop to around $95,000.

Bitcoin's price range for June is projected to be between $103,000 and $112,000, with the potential for significant movements in either direction. This volatility is influenced by macroeconomic catalysts and market sentiment. The price of Bitcoin in May ranged from $73,000 to $112,000, indicating a high level of price fluctuation. Those who bet on Bitcoin reaching $100,000 were successful, while those who predicted a price of $90,000 were not.

In summary, while there are optimistic predictions for Bitcoin's price in June, there are also cautionary notes about potential corrections. The cryptocurrency's price is expected to be influenced by various factors, including macroeconomic conditions and market sentiment. Investors should closely monitor these developments to make informed decisions.