Wednesday, June 4, 2025

Bitcoin is increasing to a brand new all -time high

Could Bitcoin proceed to rise?

On May 22, Bitcoin (BTC) reached a brand new all-time high of $ 111,681 (all numbers in US dollars, unless otherwise stated). This was probably partially driven by the continuing trend “Sell us”, with uncertainty in regards to the policy conducted by Trump, the investors caused investors to do non-US assets comparable to gold and Bitcoin.

Source: Google Finance From May 27, 2025

Could it go higher? Or is the crypto party for this market cycle over? Here is a useful perspective.

What does the fear and greed index tell us?

When BTC approached an important psychological threshold of 100,000 US dollars for the primary time in December 2024, two indicators indicate that the market could possibly be overheated: the CMC fear and greed index and the Google search volume for “Bitcoin”. This time we give us the identical indicators of the idea that BTC could proceed to rise.

Below you’ll discover the one-year table of the CMC fear and greed index (multicolored line), which is overlaid with the worth of BTC (gray line). You will find that the index at “Extreme Gier” in December in December was approaching 100,000 US dollars, which indicates a market top. But now, with BTC on a brand new all -time high, the index continues to be in “greed” biet -what it’s declaring that the market has not yet been overheated.

Graph to compare fear and green index with Bitcoin prices
Source: CMC fear and greed index 1-year data on May 27, 2025

What can Google search trends tell us about BTC?

Data from the search query tool Google Trends suggest that BTC could proceed to rise. As a rule, it’s nearby or with recent market highs, the search interest in “Bitcoin” on Google through the roof, comparable to in March 2021 and November 2024. However, we don’t see this search interest. The search volume for BTC – how repeatedly “Bitcoin” was sought on Google and its associated platforms comparable to YouTube – is lower than half of what it was in December.

The following table shows that interest in Bitcoin reached its peak in December 2024 (at the moment with the market top). This peak is shown numerically by a rating of 100. In contrast, the interest in Bitcoin on May 27 is a really low rating of 34.

Graphics of Google's Bitcoin search for over a year
Source: Google trends From May 27, 2025

To repeat: I might not surprise myself if BTC continued to rise, for the reason that BTC market often goes through when it’s exaggerated when it usually makes headlines and greed is extreme. At the moment we see no evidence based on the fear and greed index or the Google search trend data.

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Ethereum jumps back

Ethereum (ETH) has increased from the ashes of $ 1,416 to $ 2,700, in lower than two months in April to May 2025. The second largest cryptocurrency in accordance with market capitalization lost ETH with investors who were delayed behind BTC, Solana (Solana) (SOL) and lots of other crypto-assets on this BUL-Assets However, as with the investment, it is commonly the case, only in the event you think that an asset is doomed to failure – and ETH did it quickly.

What is behind ETHS revival?

The strategic plan of Creator Vitalik Buterin’s technological infrastructure of Ethereum in response to the chronic underperformance and the emergence of several competitors comparable to Solana takes on. However, in the event you do a bear trip with ETH, chances are you’ll think that the present advance is just a contra game that signifies that investors are stacked in ETH since it was deeply undervalued.

I feel it’s definitely to say that the jury continues to be prompted whether Ethereum will survive and thrive by more moderen, agile crypto competitors in the following five to 10 years or will eat up by newer, more agile crypto competitors.

Despite the largely negative news about Ethereum last yr, there’s an ideal success story on the interface of traditional funds (tradfi) and crypto. It’s called Buidl – A tokenized money market fund from Blackrock, which is essentially on the Ethereum blockchain. It is a solution to keep our government bonds through a crypto token.

By May 29, the Buidl market capitalization was on impressive $ 2.92 billion $ 600% in comparison with its introduction in March 2025. Could Ethereum be the popular blockchain for the tokenization of traditional and real financial assets?

Will the regulation of StableCoin strengthen the US Cryptovicism?

Something within the USA could possibly be great for crypto. The Federal Government tries to manage US dollars to manage cryptocurrencies which can be stable because they’re classified on the US dollar. For example, a Tether (USDT, the most important stable coin available on the market) should correspond to a US dollar.

Through the 2 -party Leadership and establishment of national innovation for US StableCoins (Genius) ActThe supervisory authorities hope to supply StableCoin emitters requirements, comparable to: B. what number of US currency you’ve got to maintain in reserve to secure your coin, and ultimately be certain that regulated stable coins maintain their value. The law is now on the bottom of the Senate. As soon because it has been adopted by the Senate and the home, President Trump’s signature will need. Although it will not be yet a level, a type of stable coin regulation could probably be the law next yr.

Stable coins are an important a part of the crypto ecosystem because they act for investors as with ramps. For example, if you wish to buy 1,000 US dollars from BTC, but not , you possibly can buy USD 1,000 and convert them to BTC steadily. If you wish to sell your BTC, you possibly can convert it to USDT as an alternative of selling it for US dollars. Imagine stable coins because the “money” of the crypto ecosystem. They are so necessary that two of the ten largest cryptocurrencies after market capitalization are stablecoins: USDT (third largest with $ 152 billion) and USDC (seventh with $ 61 billion). From May 27, 2025, Stablekoin made almost indispensable in April 2025.

Balkend diagram of the transaction volumes by crypto type
Source: Chainalysis.com From May 27, 2025

For central banks and governments, a non -regulated StableCoin ecosystem is a substantial risk. If you hold a crypto token that claims to be corresponding to the US dollar, this token of US dollars is greater than adequately secured -it is just an empty promise. A well-regulated StableCoin ecosystem would probably strengthen the trust of investors in crypto and invite more people to the market. For example, if an investor knew that Usdt acted inside a well-regulated ecosystem, he would quite convert her BTC into USDT and back, based on his prospects on the crypto market. An additional advantage could possibly be the potential to pay for real things along with your stable coin, which reduces the necessity to pull out the crypto ecosystem with the intention to make a purchase order.

Crypto price fluctuations are common

Cryptocurrencies comparable to Bitcoin, Ethereum, Solana, XRP and others are speculative and highly volatile assets which can be subject to considerable price fluctuations. Even stable coins is probably not “safe” in the event that they usually are not adequately supported by real assets.

The investment in Bitcoin and other crypto coins bears significant market, technological and regulatory risks. Only spend money on crypto if it matches your investment goals, your time horizon and your risk profile, and remain vigilant with crypto scams.

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Read more about Crypto:

  • Is now time to purchase Bitcoin?
  • Will Bitcoin crash in 2025?
  • Bitcoin tops for the primary time
  • Price for Bitcoin meets Trump’s victory and more crypto messages recent
  • How to guard your crypto from hacks

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