Crypto Market Poised for Action as Regulatory Support and Institutional Demand Build
As the traditional “sell in May and go away” mantra looms over markets, bitcoin (BTC) may defy expectations this year, with analysts forecasting a strong summer ahead.
Paul Howard, director at crypto trading firm Wincent, noted in a recent market update that instead of the usual seasonal slowdown, “buy in May and go away” could be the prevailing sentiment this time around. He highlighted a favorable mix of regulatory progress in the U.S. and ongoing institutional appetite—both through ETFs and direct bitcoin purchases—that’s expected to drive BTC prices higher in the coming months.
On Monday alone, U.S.-listed spot bitcoin ETFs saw net inflows of $667 million, underscoring robust demand as BTC hovered just below its January all-time high. So far in May, these ETFs have attracted $3.3 billion, according to SoSoValue. Meanwhile, corporate treasury adoption continues to gain momentum, with several firms joining Michael Saylor’s Strategy (MSTR) in acquiring bitcoin, often leveraging debt and equity issuance to finance their holdings.
“With the digital asset market cap nearing $4 trillion, bitcoin is well-positioned to surpass its previous highs in the weeks ahead,” Howard added. Currently, the total crypto market capitalization stands at roughly $3.3 trillion, per TradingView data.
While summers have historically been quiet for cryptocurrencies, macroeconomic and political events may shake things up this year. Analysts from crypto data firm Kaiko highlighted two upcoming catalysts: the Federal Reserve’s interest rate decision in June and the July 9 tariff deadline imposed by former President Donald Trump. Both events could inject volatility into markets.
Reflecting growing investor anticipation, bitcoin options markets have seen heavy trading activity at strike prices of $110,000 and $120,000 for the June 27 expiry, signaling bullish bets on BTC reaching new records soon.
Bitcoin briefly surpassed $107,000 during Tuesday’s trading session, up 1.2% over 24 hours and trading just 2% below its January peak.
