Bitcoin is once again in the spotlight as its price surges past the $100,000 mark, with growing signs that the world’s leading cryptocurrency could breach $110,000 before the end of May. According to analysts and industry reports, a mix of favourable market dynamics, strong institutional interest, and impressive risk-adjusted returns are fuelling the current rally.
Bitcoin’s Market Maturity and Performance
Data from Bitcoin Suisse, a leading crypto custody provider, points to Bitcoin’s ability to thrive in both “risk-on” and “risk-off” environments. This dual-purpose nature has become increasingly evident since the US presidential elections, with Bitcoin performing well despite geopolitical tensions and shifting global financial narratives.
The asset’s Sharpe ratio — a key metric that evaluates risk-adjusted returns — stands at 1.72, second only to gold. A higher Sharpe ratio suggests that Bitcoin is delivering better returns for the level of risk it carries, and analysts say this is further evidence of its growing maturity as a macro asset.
Dominic Weibei, head of research at Bitcoin Suisse, described Bitcoin as a “Swiss army knife asset,” explaining, “Whether equities rally or bonds crumble, BTC trades on its supply-demand fundamentals, delivering a win-win profile that traditional assets simply can’t offer.”
Supply Squeeze in the Making
As of May 7, Bitcoin’s 90-day spot taker cumulative volume delta (CVD) turned buyer dominant for the first time in over a year. This metric reflects the balance between aggressive buying and selling in the market, and the shift indicates that buyers — particularly institutions — have taken the upper hand.
The surge in buying is largely driven by institutional interest and a sharp increase in spot Bitcoin ETF inflows. Since 1 April, more than $4.5 billion has flowed into these ETFs, suggesting a strong appetite for direct exposure to Bitcoin from major financial players. This structural demand, combined with limited new supply, could result in a classic supply squeeze.
Acceleration Phase Incoming
According to Fidelity Digital Assets’ Q2 2025 Signals Report, Bitcoin may be entering an “acceleration phase.” This period, historically marked by sharp price surges, typically follows accumulation by long-term holders and heightened volatility.
Fidelity analyst Zack Wainwright noted that Bitcoin’s history of “high volatility and high profit” often leads to explosive gains. Currently, over 86% of the circulating supply is in profit, adding to the bullish sentiment and potential for further upward momentum.
Positive Sentiment Across Market Conditions
Bitcoin’s resilience has also contributed to its appeal. Over the past two quarters, it has served both as a hedge during times of uncertainty and as a growth asset during optimistic market periods. This versatility has strengthened its position among investors looking for alternatives to traditional assets like equities and bonds.
With confidence high, institutions entering in force, and favourable technical indicators aligning, market observers say Bitcoin may not just test but break through its previous all-time highs. If current conditions persist, BTC could be on track to hit $110,000 or higher before the month ends.
