Bitcoin has entered its most robust accumulation phase since January, with the cryptocurrency surpassing a $110,000 valuation as of May 2025. This surge represents an 18% increase over the past month alone, signaling a renewed bullish sentiment among a diverse range of investors.
All Eyes on Accumulation
According to data from Glassnode, the Accumulation Trend Score has hit its peak value of 1.0. This metric, which assesses the intensity of buying activity across different wallet sizes, highlights an aggressive accumulation trend. Notably, it excludes exchanges and miners to provide a clearer picture of genuine market behavior. This strong buying activity commenced in early May, spearheaded by ‘whales’—entities holding over 10,000 BTC. As the upward momentum gathered pace, smaller investors joined the fray, further intensifying the acquisition frenzy. This follows a pattern of institutional adoption, which we detailed in Bitcoin Surges Past $94,000 as Institutional Interest and Market Optimism Grow.
The current accumulation marks a stark contrast to the behavior observed from January to April 2025, a period characterized by widespread divestment as Bitcoin plunged from a previous high of $109,000 to lows of around $75,000. This renewed interest hints at a possible shift in market dynamics, with investors seemingly undeterred by past volatility.
Options Market Paints a Bullish Picture
The cryptocurrency’s bullish momentum is mirrored in the options market, where CoinDesk Research has identified significant bullish positioning. The $300,000 strike for June 2025 expiry has emerged as the most favored call option, boasting a substantial $620 million in notional value. Additionally, another $420 million is concentrated at the $200,000 strike. Such activity underscores investor optimism about Bitcoin’s potential for further gains. As explored in our recent coverage of Bitcoin Surpasses $95K Amid Resilient U.S. Stocks, Analysts Voice Concerns Over Market Perception, the interplay between traditional markets and digital assets continues to influence Bitcoin’s price trajectory.
Historically, Bitcoin often experiences a dip following an all-time high due to profit-taking. However, traditional assets like the S&P 500 and gold tend to continue their upward trajectory under similar conditions. Should Bitcoin mimic these more established assets, it could herald the onset of a sustained bull cycle—a prospect that market participants are keenly monitoring.
Historical Context and Future Implications
Looking back, Bitcoin’s journey has been anything but linear. The cryptocurrency has weathered numerous storms, with each cycle bringing its own lessons. The current rally, driven by robust accumulation, is reminiscent of past bull cycles, yet distinct in its intensity and breadth of participation.
As we move forward, several questions linger. Can Bitcoin maintain this momentum, or will it succumb to the cyclical downturns that have characterized its past? The answer may lie in the broader adoption of cryptocurrencies and the evolving landscape of financial markets.
In the coming months, the interplay between traditional financial instruments and digital assets will likely shape Bitcoin’s trajectory. As we stand on the cusp of what could be a transformative period for Bitcoin, the market’s eyes remain fixed on the unfolding narrative—one that promises both challenges and opportunities in equal measure.
Source
This article is based on: Bitcoin Enters Strongest Accumulation Phase Since January as BTC Price Passes $110K
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
