Bitcoin Nears All-Time High as Institutional Buying Surge Confronts Market Overheating Concerns

Rising 1.7% over $103,000, Bitcoin BTC/USD is firmly above its lowest point as institutional accumulation and bettering macroeconomic conditions create a favorable environment for the top cryptocurrency.

Bitcoin (BTC) price clocked in on Monday with a 1.7% rise to no less than $103,000 as institutional purchasing activity continued to build.

Pointing to a new all-time high around $110,000, several analysts saw no immediate threat to the bull market despite concerns over market overheating.

Bitcoin surpasses $100K again as institutional buying ramps up

Beginning the week on a high note, Bitcoin nonetheless slipped somewhat from Friday’s levels, remaining well above its lowest point for 2024.

Despite a new high from the CBOE Volatility Index (VIX), which dropped to its 30-year average of 20 following a US-China trade deal bringing a 90-day tariff truce earlier this year, bullish trends appeared to be continuing.

From a top of 60 earlier this year, the VIX had dropped to 20, while US inflation also continued to cool; April’s Consumer Price Index, the lowest since February 2021, came in at 2.3% year over year.

According to Bitcoin network economist Timothy Peterson, these elements, in turn, pointed to a “risk-on” environment that could drive Bitcoin to $135,000 within 100 days, based on his model which he claimed had a 95% historical accuracy.

"We're about 100 days out from the last all-time highs in March 2024, and my model for predicting major price swings in Bitcoin has a 95% success rate over the last 18 years, " Peterson wrote in part of a blog post on Monday.

"My model predicts that, given the current trends in macroeconomic indicators like the VIX and inflation, Bitcoin is likely to continue rallying to new highs within the next 100 days. I expect to see price levels in the $135,000 range."

At the same time, though, the Fear & Greed Index grew to 53.3% on Monday, still out of extreme euphoric ranges.

The Bitcoin Bull Score Index, meanwhile, shot up massively from 20 to 80, and will hit its greatest level in 2025.

"We're seeing a strong institutional interest in cryptocurrencies, particularly Bitcoin, which is evident in recent investments by major companies and venture capitalists," Dragosch said.

"This influx of capital is putting upward pressure on prices and fueling the bull market in cryptocurrencies."

Treasury companies and 'this cycle's bubble'

The subject of companies buying up Bitcoin to add to their treasuries continued to be a point of contention among market participants.

Some called the trend, which is seeing an increasing number of firms take on large BTC holdings, “this cycle’s bubble.”

"These companies are generating shares out of nothing to buy Bitcoin. They have no revenue, no earnings, and minimal underlying value other than their BTC exposure," market analyst Ben Armstrong stated.

"It's an interesting cycle we're seeing play out."

Leading the way was Strategy (formerly MicroStrategy), which had an overall holding of 568,840 BTC. Afterwards came MARA Holdings with 48,237 BTC and Twenty One Capital with 36,312 BTC.

However, several other companies were engaging in Bitcoin accumulation tactics, ranging from metaverse project Metaplanet and medical technology firm Semler Scientific to KULR Technology, which specializes in thermal management solutions for critical electronic devices.

In some cases, the companies were trading at valuations that were hugely inflated compared to their business fundamentals, which ultimately posed a concern for investors focused on standard investment criteria.