"Macroeconomic Tailwinds and $100 Billion in Spot Fund Inflows: Double Boost" Bitcoin Projected to Reach $150,000 by Year-End

▲ Bitcoin (BTC) ©Go Dasol

As the leading cryptocurrency, Bitcoin (BTC), touched $81,760 in one go, breaking its three-month high, market attention is focused on whether Bitcoin, backed by massive capital, can break through the 200-day exponential moving average of $82,000 and kick off a long-term rally towards the $130,000 mark.

According to the investment media TradingNews on May 6 (local time), Bitcoin surged to $81,760 during Wednesday's trading session, showing its strongest performance since late January. It has risen by 19.20% over the past 30 days, breaking the upper bound of a multi-month sideways channel, but it stands at a critical juncture to determine whether this is a true trend reversal into a bull market or merely a recovery phase.

Currently, all market attention is fixed on the 200-day exponential moving average, which lies between $82,000 and $83,300. This range is a key demarcation line that could break the tedious four-month downtrend and confirm a full-fledged bullish reversal. If a daily close above $82,000 is achieved, Bitcoin could unhesitatingly surge past $84,000, then the psychological resistance of $90,000, and further to $97,000. Conversely, if it fails to break through and falls below $80,000, it is expected to return to a range-bound market, testing the support level of $75,000 again.

The source of the strong buying pressure is undoubtedly spot exchange-traded funds (ETFs). The total assets under management of all Bitcoin spot funds have exceeded $100 billion, with BlackRock's iShares Bitcoin Trust (IBIT) alone accounting for $63.7 billion. Notably, even after a massive $208 million profit-taking sell-off last Sunday, Bitcoin firmly held the $80,000 mark, proving that robust institutional buying is perfectly absorbing market selling pressure.

Another major market variable is Strategy, the single largest corporate holder of Bitcoin. In its recent first-quarter earnings report, the company recorded substantial book losses and made a bombshell announcement, retracting its previous stance of never selling and stating that it might consider selling Bitcoin to enhance shareholder value. Bitcoin's price briefly faltered below $81,000 on this news, but the buying pressure from spot funds defended it within an hour, serving as an opportunity to reconfirm the strong downside support from institutional capital.

The macroeconomic environment is also bolstering Bitcoin's rise. News of a peace agreement with Iran has stabilized international oil prices, and the dollar has weakened, significantly easing inflation concerns and liquidity pressures that had been weighing on the virtual asset market. Experts recommend buying if the $75,000 support level is not breached, targeting $97,000 as the first objective, and predict that reaching $130,000 to $150,000 by year-end is entirely possible if institutional capital inflow maintains its current pace.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*