The Bitcoin price (Swedish version) remains incredibly strong as summer unfolds. At the time of writing Bitcoin is trading at around $71,000, up approximately 3% since yesterday. Although Bitcoin did not reach a new all-time high during May, the average price during the month was so high that it will go down as one of the highest average prices ever for Bitcoin during a calendar month. The cryptocurrency benefited from the all-time highs in US stock indices and exceeded expectations in April’s inflation figures. However, the situation could swiftly reverse if May’s inflation data is interpreted negatively.
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To give an indication as to how Bitcoin performed in May, we need to turn back the clock. First of all, Bitcoin has not had an average price above $60,000 in a calendar month until 2024. The sole exception was November 2021, when Bitcoin’s average price was $60,698 for the month.
In 2024, the monthly averages stand at $42,921.8 for January, $49,886.6 for February, $67,682.9 for March, $65,877.3 for April, and $65,278.8 for May. During May, Bitcoin surged from just over $56,000 to nearly $72,000 at its peak, helped by better-than-expected inflation numbers for April - and many wondered if Bitcoin once again would set a new all-time high. Without a further catalyst, Bitcoin was unable to climb higher, but to the delight of many, there was no dramatic fall either.
Once again there has been a focus on the spot Bitcoin ETFs in the US. Notably, cumulative flows into these ETFs have remained positive since May 10th, a stark contrast to earlier in the year when outflows could persist for days on end. Just yesterday, the ETFs experienced their second-best day since launch, attracting a staggering $886.6 million in net inflows, according to Farside.
Looking ahead, next Wednesday’s release of May’s inflation figures in the US will be closely watched. Following the positive market response to the April figures, the big question is how market participants will react this time. In addition to the inflation figures, Jerome Powell and the FED will hold an FOMC meeting on 11-12th of June, and although the interest rate most likely will remain unchanged, unexpected statements from the committee can quickly mean fluctuations for both the stock market and the crypto market.
In summary, next week promises excitement and potential market shifts so stay vigilant.
This text is intended to inform and is not an investment recommendation.
Best regards,
Adam Jakobsen.
NBX.
