Bitcoin Surges to $104K: What You Need to Know
By Timothy Morano
Published on May 16, 2025, at 05:24
In a remarkable turn of events, Bitcoin (BTC) has hit an astounding price point of $104,000, fueled by robust activity in the spot market and significant inflows into exchange-traded funds (ETFs). While these trends are catching the eye of many, data from Glassnode reveals that the derivatives markets have yet to fully align with this bullish momentum.
Spot Market: The Driving Force
The recent leap from $35,000 to $104,000 can largely be attributed to heightened demand in the spot market. On-chain volume data underscores this trend, revealing concentrated accumulation between the $93,000 and $95,000 range. This zone has emerged as a critical support level, with platforms like Coinbase experiencing significant net buying. This "buy-the-dip" mentality contrasts sharply with earlier fears of selling pressure, with major exchanges like Binance showing signs of easing.
Moreover, ETF inflows reached a remarkable $389 million per day in late April. Although the daily inflow has since tempered to $58 million, these figures continue to bolster Bitcoin’s bullish sentiment.
The Derivatives Market: A Waiting Game
While the spot market shows vigorous activity, the derivatives sector has not maintained the same pace. Recent short squeezes led to a contraction in open interest within perpetual futures markets, dropping from 370,000 BTC to 336,000 BTC. This suggests a healthier trading environment, free from excessive leverage that can lead to sharp corrections.
Funding rates across major exchanges remain neutral, which is a positive indicator for future bullish moves. This stability suggests that traders are more cautious, further legitimizing the underlying strength of the current price action.
Strong Institutional Interest: A Game Changer
Despite the slower activity in derivatives, institutional interest in Bitcoin remains robust. The ETF wallets have showcased a staggering weekly average net inflow of $389 million, signaling a strong demand from institutional players, akin to the trends seen in 2024’s market rallies.
At Extreme Investor Network, we’re keenly observing this growing institutional interest, which has the potential to stabilize and propel BTC prices even further. Historical parallels suggest that sustained institutional participation could be a key catalyst for future price appreciations.
Bullish Sentiment in the Options Market
What’s even more intriguing is the sentiment in the options market. The 1-Month 25 Delta Skew has decreased to -6.1%, indicating that traders are increasingly betting on upward price fluctuations. This uptick in speculative activity lends credence to the idea that bullish pressure is likely to persist.
Conclusion
With Bitcoin’s price soaring to $104,000, the dynamics of the cryptocurrency market paint a picture of a thriving ecosystem driven primarily by spot market activity and institutional interest. As the derivatives markets catch up, the current conditions suggest a sustained bullish trend that could pave the way for even greater heights in the coming months.
For more detailed insights into the cryptocurrency market, explore the latest analyses and reports on our platform, Extreme Investor Network. Stay ahead of the curve and learn what drives market trends and price movements today!
Image source: Shutterstock