Bitcoin has now moved to a new all-time high (ATH), climbing to $111,889 amid renewed investor enthusiasm and growing institutional activity. The rally, which follows weeks of steady gains, has been prompted by a convergence of supportive macroeconomic and capital market factors.
According to Geoffrey Kendrick, Standard Chartered’s global head of digital assets research, all previously identified drivers of this rally are now contributing simultaneously, fueling optimism for more upside.
Additionally, the data signals a shift in capital allocation, with over $7.5 billion flowing into Bitcoin ETFs in recent weeks while gold exchange-traded products (ETPs) saw a $3.6 billion outflow.
Kendrick further noted that Bitcoin’s strong correlation with US Treasury term premiums has helped position it as a hedge amid rising concerns about bond market risks, both in the US and globally.
According to Kretov, these dynamics can amplify market reactions to sudden news or regulatory developments. He likened the situation to a tightly stretched rubber band, suggesting that even small events could trigger outsized price swings.
Still, others remain confident that momentum will carry Bitcoin higher. Paul Howard, senior director at Wincent, believes the market is experiencing a classic “buy in May and go away” scenario, often used to describe seasonal strength in financial markets.
Featured image created with DALL-E, Chart from TradingView
