Bitcoin has shot up to about $97,000, getting close to the milestone $100,000 level, even as recent U.S. labor data show economic weakness. The strength is driven by growing institutional demand, positive regulatory trends, and Bitcoin’s increasingly recognized role as a hedge against macroeconomic turmoil.
Institutional Inflows and Market Dynamics
The crypto market has regained a $3 trillion valuation, with Bitcoin dominance increasing to 63.8%, its highest level since January 2021. This comes amid significant institutional investment, with a $422 million net flow into Bitcoin ETFs at the beginning of May. Top financial institutions such as Morgan Stanley are said to be preparing to offer spot cryptocurrency trading on platforms such as E*Trade, which marks a transition to mainstream acceptance. Also, firms such as MicroStrategy are increasing their holdings of Bitcoin and intend to buy more through a $21 billion equity offering.
Technical analysis suggests that Bitcoin has crossed a falling channel and pennant pattern, implying bullish pressure. Yet, the Relative Strength Index (RSI) approaching overbought levels and declining trading volumes suggest careful optimism. Important resistance points are marked at $100,000 and $107,000, and support at $92,000 and $85,000.
Economic Indicators and Bitcoin’s Safe-Haven Appeal
Current U.S. labor statistics indicate rising unemployment claims, which reached more than 241,000 as of April 26, 2025. This economic uncertainty has prompted investors to turn to alternative assets, and Bitcoin has been a top choice as a store of value. Experts say that poor labor and consumer data tend to precede Bitcoin rallies, as was the case in past economic recessions.
Geoff Kendrick of Standard Chartered projects Bitcoin could reach $120,000 in the second quarter of 2025, driven by factors such as economic uncertainties, institutional adoption, and Bitcoin’s perceived superiority over traditional safe-haven assets like gold. Similarly, macro analyst Lyn Alden anticipates Bitcoin surpassing $100,000 in 2025, potentially doubling in value within a year, citing ongoing tariff wars and favorable policy shifts.
As Bitcoin keeps charting its way through economic turbulence and institutional approvals, its path towards the $100,000 price point seems more and more believable. The intersection of technical metrics, market mood, and macro factors highlights Bitcoin’s expanding influence in the international financial scene.
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