Bitcoin Surges Above $109,000: Market Analysts Anticipate Long-Term Growth
Published: May 22, 2025, 07:46 AM IST
By Jocelyn Fernandes
Bitcoin, the world’s leading cryptocurrency, has achieved significant milestones recently, soaring past $109,000 to an all-time high of $110,707 on May 22, according to data from CoinMarketCap. This surge has caught the attention of both retail and institutional investors, prompting analysts to predict the potential for long-term growth in the next phase.
Consistent Bullish Momentum
As of 7:30 AM IST on May 22, Bitcoin’s price settled at $109,980, reflecting a 3.25% increase from the previous day, and the cryptocurrency’s market capitalization has surged to approximately $2.18 trillion. The trading volume for Bitcoin reached an impressive $85.13 billion, representing an increase of nearly 69% from the previous day, indicating robust activity in the market.
The CoinSwitch Markets Desk highlighted the increasing bullish sentiment surrounding Bitcoin. Recent data indicates that Bitcoin futures open interest rose by 10.65% to $74.35 billion, with Binance leading this growth at $12.28 billion in open interest. This suggests that traders are utilizing leverage in anticipation of continued price increases. Additionally, institutional interest is evidently strong, with the U.S. spot Bitcoin ETFs recording net inflows of $41.7 million on May 20, marking their fifth consecutive day of positive inflows.
Long-Term Outlook: Analysts Weigh In
Investors are closely watching Bitcoin’s trajectory, with many experts now focusing on its long-term potential. Alankar Saxena, Co-founder and CTO of Mudrex, noted the growing spot demand reflected in positive net volume changes on major exchanges. He stated, “Bitcoin supply on exchanges has dwindled to 7.1%, the lowest level since November 2018,” a sign of rising confidence among investors favoring long-term holding strategies.
Market analyst Alex Kuptsikevich from FxPro added that Bitcoin’s ascent is predominantly fueled by retail investors. He commented, “Despite concerns about a slowing U.S. economy and the Federal Reserve’s monetary policy, the traders seem largely unconcerned—buying both the S&P 500 and digital assets simply because they are on the rise."
Joshua Lim, global co-head of markets at FalconX, echoed this sentiment by emphasizing the underlying demand for Bitcoin. He remarked that Bitcoin’s journey towards new all-time highs is unfolding gradually, with many SPAC and PIPE deals contributing to current levels of demand.
Price Predictions: Eyes on $125,000
Looking ahead, market analysts are eager to see if Bitcoin can sustain its momentum and push past $110,000. Tony Sycamore from IG commented that reaching and maintaining a price above $110,000 is essential for Bitcoin to advance towards the next significant psychological level of $125,000. ## Ethereum: A Rising Contender
As Bitcoin makes headlines, Ethereum, the second-largest cryptocurrency, has also been performing well. As of the same reporting time, Ethereum priced at $2,586.63, up 2.81% over the past 24 hours, with a market cap of $312.27 billion and trading volume of $33.41 billion. Analysts note that Ethereum is approaching critical resistance at the $2,500 mark while exhibiting strong momentum, having gained nearly 60% over the last month.
Riya Sehgal, a research analyst at Delta Exchange, expressed cautious optimism, saying, “Ethereum’s current setup suggests potential for additional volatility." According to her analysis, if Ethereum can hold above $2,200, it may continue to gain traction, while the broader crypto market remains under close observation.
Harish Vatnani, head of trade at ZebPay, pointed out that Ethereum’s recent price surge—from lows of $1,385 to highs of $2,738—is indicative of its bullish trend. He mentioned that breaking resistance at $2,850 could pave the way for further gains towards $3,000 and beyond.
Conclusion
As Bitcoin and Ethereum make significant strides in the crypto markets, investors and analysts alike remain watchful of the shifting dynamics. With both cryptocurrencies exhibiting strong demand, the outlook for long-term growth appears promising.
Disclaimer: The views and recommendations expressed in this article are those of the respective analysts and do not necessarily reflect the views of the publication. Investors are encouraged to consult certified experts before making any investment decisions.
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