Bitcoin Surges Past $105K: Institutional Demand & Futures Fuel Rally
Bitcoin Price Soars Above $105,000
Bitcoin (BTC) experienced a significant price surge on May 20th, climbing over 3% to surpass $105,000. This rally saw intraday highs of $107,148, fueled by a confluence of factors pointing to increased institutional interest and bullish market sentiment.
Spot Bitcoin ETF Inflows Drive Demand
A key driver behind this price increase is the substantial inflow of capital into US spot Bitcoin exchange-traded funds (ETFs). Data reveals $6.9 billion in new capital accumulated over three weeks, with inflows recorded on 18 out of the last 21 days. This demonstrates a growing appetite for regulated Bitcoin exposure among investors.
Furthermore, CoinShares data shows $785 million flowing into crypto investment products, extending a five-week streak of inflows and highlighting institutional investor optimism. Bitcoin investment products alone saw $557 million in inflows last week.
This institutional buying spree is further evidenced by significant purchases from corporate entities. Strategy (formerly MicroStrategy) acquired 7,390 BTC (approximately $765 million), while Metaplanet in Japan added 1,004 BTC (around $129 million).
Record-High Open Interest in Bitcoin Futures
The surge in Bitcoin's price is also linked to a record-high open interest (OI) in the futures market. Data shows total OI reaching $72.63 billion on May 20th, up from $57.1 billion on April 19th. This represents a 27% increase over 30 days, indicating elevated demand for leveraged Bitcoin positions. Bitcoin CME futures OI also hit a 90-day high of 157,875 BTC (approximately $16.76 billion).
Bullish Technical Pattern Suggests Further Gains
Technically, the BTC/USD pair has been forming a bullish "cup and handle" pattern since December 17th, 2024. A break above the neckline resistance around $106,000 could propel Bitcoin towards a target price of $138,000, representing a potential 31% increase from current levels. Some analysts even predict a potential move to $116,000 in the near future.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. All investment decisions involve risk, and readers should conduct their own thorough research before making any investment choices.
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