Bitcoin’s recent slip from its near $97,900 high to $93,500 may have rattled some short-term traders, but institutional momentum and market dominance indicate the long-term bull case remains intact. Despite broader market jitters and macroeconomic uncertainties, the fundamentals supporting Bitcoin’s potential surge to $100,000 by 2025 are still robust.
Institutional Demand Remains Strong
While retail investors express concern over Bitcoin’s 4.3% decline since May 2, institutional players are doubling down. Spot Bitcoin ETFs saw $4.5 billion in net inflows from April 22 to May 2, underscoring growing interest from traditional finance. Open interest in BTC futures now stands at 669,090 BTC, up 21% since March, with over $13.5 billion in positions on the Chicago Mercantile Exchange (CME) alone — a clear signal of sustained institutional engagement.
Moreover, Strategy, led by Michael Saylor, announced a fresh purchase of 1,895 BTC on May 5 and revealed an $84 billion capital plan to fund additional Bitcoin buys. Despite market volatility, this strategic move reflects deep conviction in Bitcoin’s long-term value.
Bitcoin Dominance Signals Market Shift
Amid the latest sell-off, Bitcoin’s market dominance has surged to 70%, its highest since January 2021. This is particularly notable given the influx of high-profile altcoin launches such as SUI, TON, PI, and TRUMP. The shift indicates a growing preference for Bitcoin over riskier assets, especially among new entrants and institutional players seeking safer crypto exposure.
This heightened dominance, alongside sustained ETF inflows, supports the narrative that Bitcoin remains the cornerstone of the digital asset ecosystem.
Also Read: Bitcoin’s (BTC) Double Life: Wall Street’s Bullish, Derivatives Say ‘Maybe Later’ – Analyst
Macro Pressures vs. Long-Term Potential
Global economic uncertainty — fueled by a mounting trade war and elevated Treasury yields — has dampened risk appetite. Gold’s 16% rally over the past three months has outperformed Bitcoin and equities, challenging the notion of Bitcoin as a hedge. Yet, these short-term correlations do not negate Bitcoin’s long-term promise as a scarce, decentralized store of value.
To surpass the elusive $100K threshold, improved US-China trade relations and macro stability may be necessary catalysts. Nonetheless, with growing institutional conviction, rising dominance, and a favorable regulatory trajectory, Bitcoin remains poised to chart new highs in 2025.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
