Bitcoin Surges 2% to New All-Time High of $111,970 Amid Bullish Sentiment

Bitcoin has recently surged to a new all-time high of $111,970, driven by bullish sentiment and significant market activity. Despite this impressive performance, a market analyst has asserted that the asset is far from being "overheated." The analyst, Dan Crypto, with over 600,000 followers on X, examined key indicators such as the funding rate and short-term capital inflow to assess the market's condition. According to the analyst, while long bets have increased, the current market conditions are not comparable to previous peaks. The proportion of bitcoins traded within one week to one month indicates that short-term capital inflow is not as rapid as during past market tops.

Dan Crypto also noted that a large profit-taking and prolonged correction season followed the recent spike in Bitcoin’s price. However, profit-taking at this time is significantly below levels seen in November 2024, and whale profit-taking remains very limited. This suggests that the market is not yet overheated, despite Bitcoin reaching a new all-time high. Additionally, Bitcoin holdings in the spot ETF market have hit a new all-time high, with increased holdings by retail and institutional investors, especially in the US, significantly supporting the overall market uptrend.

Amidst growing concerns about a potential price peak, an expert has maintained that Bitcoin is still not overheated. The cryptocurrency has shown resilience around the $108,000 level, reflecting growing institutional trust and support. This durability is particularly evident after major legal changes and company acceptance announcements, demonstrating greater confidence in its long-term direction. At the Bitcoin 2025 conference, Senator Cynthia Lummis announced that President Trump supports the BITCOIN Act, a historic law guiding the US government to acquire one million Bitcoin over five years. The acquisitions would be funded using budget-neutral strategies to minimize the burden on taxpayers. The Trump administration, comprising a team of experts working on digital asset regulation, intends to present proposals on stablecoins, market structure, and the Bitcoin Strategic Reserve.

Complementing this legislative momentum is the emerging GENIUS stablecoin law, which passed a crucial procedural vote. With stablecoins constituting over 85% of the market, the all-encompassing government framework for dollar-pegged stablecoins could further legitimize the cryptocurrency ecosystem. Corporate adoption of Bitcoin has reached new heights with major treasury acquisitions. Trump Media and Technology Group declared intentions to buy Bitcoin following a $2.5 billion debt and equity fundraising round. CEO Devin Nunes signaled a more general corporate treasury strategy tendency by declaring Bitcoin as “an apex instrument of financial freedom.” MicroStrategy continues to lead corporate adoption, recently buying 7,390 BTC to reach 576,230 BTC overall. BlackRock’s dedication to Bitcoin grew stronger as seen by its Strategic Income Opportunities Portfolio, which raised IBIT holdings by 25% to 2.1 million shares valued at $99.4 million as of March 31. The increasing exposure of the world’s biggest asset manager highlights Bitcoin’s rising importance as a strategic portfolio allocation even inside usually conservative bond-oriented approaches.

Technical analysis suggests that Bitcoin is set for a major climb higher. If Bitcoin breaks $115,000, liquidation statistics show over $7 billion in short positions might be erased, setting off a domino effect pushing prices toward new all-time highs. With optimistic momentum driven by better US financial circumstances, the bitcoin trades barely 2% below its past peak right now. The National Financial Conditions Index indicates a quick move to an ultra-loose zone, fostering favorable macroeconomic conditions for risk assets. This climate helps Bitcoin to flourish in such times. Since 2023, the relationship between relieving financial constraints and Bitcoin swings has stayed constant.

On-chain data, however, point to the market maybe approaching overheated conditions. With 19.4 million BTC now lucrative, the Supply in Profit indicator approaches historical highs previously unheard of before corrections. Similar situations sometimes linked with local price tops are indicated by the Advanced Net UTXO Supply Ratio close to 0.95. Despite these warning indications, investor behavior study shows consistent institutional interest. First Buyers, fresh market participants, have returned with substantial demand rises, hence perhaps explaining the recent climb to new highs. This suggests a more developed market structure than usual retail-driven cycles. Stronger buying activity from US-based investors—often connected with institutional demand—reflected in the continuously positive Coinbase Premium Index over the past month. With May poised as a record month with over $1.5 billion in net inflows in just two days, Bitcoin ETF inflows keep setting milestones. Technical study and basic trends suggest that Bitcoin is ready for a near-term movement toward $115,000-$120,000. Legislative support, corporate acceptance, and institutional accumulation taken together give strong basic support for increased pricing. Traders should still be wary of any profit-taking, though, given improved on-chain measures. The $112,000 level corresponds with immediate technical opposition based on Bitcoin’s market capitalization surpassing Google and Meta. A continuous break above this level might set off the huge short squeeze toward $115,000, so allowing Bitcoin to create new trading ranges in the $115,000-$120,000 zone.