Bitcoin (BTC) has reached a historic milestone by surpassing a $2.18 trillion market cap, signaling strong momentum in the crypto market. Bitcoin traded around $104,116 at its peak, just below its all-time high of $108,000. Increased institutional activity and higher trading volumes on major exchanges like Binance and Coinbase supported this market growth.
Bitcoin Hits New Highs Amid Rising Demand
Bitcoin’s price has surged, closing above $106,000 for the first time on May 18, marking a significant achievement. This rise marks the sixth consecutive week of gains, reflecting consistent investor confidence and sustained buying pressure. At the time of reporting, Bitcoin was priced at $104,116, only 4% below its all-time high.
The trading market continues to fare well, with each Binance and Coinbase processing daily volumes above $55 billion. Despite the increase in overbought signals, Bitcoin’s direction looks quite positive. As prices keep rising, analysts notice that the market could experience small digressions.
Between May 10 and May 18, transactions involving more than 1 BTC increased by 15%. Based on Glassnode, the rise is due to more people and organizations buying Bitcoin. The ProShares Bitcoin Strategy ETF (BITO) was up 5% to $28.50, following the movement of Bitcoin.
Market Reactions Extend Beyond Bitcoin
Crypto-related stocks also saw positive movement as market optimism grew across sectors. On May 17, Strategy (MSTR) gained 3.2%, while Coinbase (COIN) rose by 2.8%. Additionally, the S&P 500 increased by 0.5%, showing a closer correlation between traditional equities and digital assets.
Altcoins experienced sharp moves, with some low-cap tokens rising by 20% to 50% during weekend trading. Market watchers expressed concern over a suspected “Sunday Scam Pump” driven by speculative momentum. This activity raised caution among traders, despite the bullish trend in larger-cap assets like Bitcoin.
Meanwhile, the reappearance of the Coinbase premium indicated growing domestic demand in the U.S. market. Analysts at Arete Capital noted that a sudden Sunday night bid could signal an upcoming event or trend. While speculative, this shift points to renewed interest from U.S.-based buyers.
Bitcoin Price Momentum Builds
Bitcoin closed May 18 at just under $106,500, achieving its highest weekly close to date. Previous weekly highs stood at $104,400 in December, followed by an all-time high of $108,000 in January. This new closing level represents ongoing upward pressure, supported by consistent buying.
Bitcoin climbed from $94,000 to $106,800 in the first half of May before pulling back slightly. This gain of nearly $12,000 in a few weeks mirrors price action seen in previous rallies. Bitcoin added $30,000 in under a month in November, indicating that sharp gains remain possible.
Investor sentiment remains cautiously optimistic as analysts track price indicators for further signs of strength. Rekt Capital stated that a breakout above $105,000 could create a new local high. Meanwhile, investor Scott Melker confirmed that May 18 marked Bitcoin’s highest single-day closing value.
FAQs
What caused Bitcoin to reach a $2.18 trillion market cap?
Strong buying momentum, institutional interest, and high trading volumes pushed Bitcoin to surpass this market cap milestone.
How much did Bitcoin rise in May?
Bitcoin rose from $94,000 to $106,800 in May, gaining almost $12,000 before a slight pullback.
Is the market showing signs of being overbought?
Bitcoin’s RSI at 72 and MACD readings suggest overbought conditions, but bullish sentiment persists.
Are more investors holding Bitcoin?
Yes, wallet data from Glassnode shows a 15% rise in addresses holding more than 1 BTC between May 10 and May 18.
What is the significance of the Coinbase premium?
The return of the Coinbase premium suggests increased demand for Bitcoin in the U.S., often signaling upcoming market activity.
Glossary of Key Terms
Bitcoin (BTC): A decentralized digital currency without a central bank, secured by blockchain technology.
Market Cap: Total value of a cryptocurrency’s circulating supply multiplied by its current price.
RSI (Relative Strength Index): A technical indicator used to measure momentum and identify overbought or oversold conditions.
MACD (Moving Average Convergence Divergence): A momentum indicator that shows the relationship between two moving averages.
Coinbase Premium: A price difference between Bitcoin on Coinbase and other exchanges, indicating regional demand.
ETF (Exchange-Traded Fund): A type of investment fund traded on stock exchanges, often tracking specific assets.
All-Time High (ATH): The highest price level an asset has reached historically.
Low-Cap Altcoins: Cryptocurrencies with small market capitalizations, typically more volatile than large-cap assets.
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