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All Eyes on Bitcoin
Bitcoin saw explosive growth immediately after the recent U.S. presidential elections, rising and retaking the spotlight from former highs of $73,000 in March. Now the question is, will bitcoin (BTC) continue its uptrend, and at what point can a sharp reversal happen?
If we take a look at former BTC market cycles, which happen every four years, then we see that we are now just starting to go into new bitcoin price discovery areas, and BTC could top out at new all-time highs, which is practically anything greater than the current resistance of $92,000. Bitcoin could even potentially see highs of $140,000+ based on prior supply and demand — i.e. halving cycles. On the contrary, what makes this market cycle a bit different than others is the vanished principle of BTC being an inflation hedge or digital gold. In theory, it was supposed to be — that is, at least, likely what Satoshi intended since bitcoin was created after the 2008 financial crisis. From what we saw in the last cryptocurrency bear market cycle, BTC is not an actual inflation hedge and performs like all other risk-on assets, so sentiment could change once the inauguration happens in January.
As we’ve seen before, politics could potentially just be politics until we see actual regulatory rollouts and a more favorable U.S. stance on paper with policies and laws that the markets fully embrace. Things seem to be going in the right direction with the news of Gensler resigning come January 20, 2025. The question remains on who will be his replacement; the wrong person and the smallest sentiment change in the wrong direction could fully accelerate a drawdown in BTC. We’ve previously seen what every Fed meeting minute has done to the price action of crypto which has, up until recently, always been negatively perceived. In other words, we are not fully out of the woods just yet, especially until there is clarity on who could be Gensler’s replacement.
The BTC ETFs played a vital role this year in institutionalizing the cryptocurrency, which allowed for RIA and fiduciary investment in bitcoin, although in a turnaround market the same volumes that helped bitcoin get to the point it is at today can be the same volumes and outflows that present a downfall. This can lead to crippling sentiment as we all know the crypto bull market does not last forever and drawdowns of 70-80% can be expected.
Looking at prior BTC bull market cycles, BTC has seen drawdowns of 20-30%. Can the same be expected with all the new factors under the current and new market structure? Analysts assume less drawdown and volatility scenarios due to the BTC ETF options offered by iShares and others, although on the contrary, systematic strategies still seem to be sought after with investors taking bets on market volatility, which only recently (in 2022) saw an equity market-like expansion in the crypto markets where enough volume, market cap, and stability existed for the shorting functionality of some coins.
With more market participants and more avenues of shorting functionality across all crypto assets, including BTC, this can create more volatility in the short-term. Compared to the last market cycle, there are a lot more traditional finance (TradFi) players trading and market making in the space now, which in a way is offset by more institutional capital locked up (mostly in ETFs since the venture space in crypto dried up from the fast money of the last bull market). Although in a way, no matter how much institutional capital enters the space, the market cycle of BTC will follow volatility— it’s just in its decentralized nature.
Regardless of whatever outlook one has on the price of BTC, it’s important to realize that this is a different market than before. Gone are the days of quick “hot money” returns with the inevitable crypto risk factors ever present. One must remain cautious, but optimistic, on where things are going, if not bullish on the market cycle and structure alone. Regardless, for every type of investor, there is a huge opportunity due to the immense growth of the industry, and when that window will close is anyone’s guess — the only thing for certain is that the new market cycle is just getting started.
Bitcoin BTC became the world’s fifth-largest asset after hitting a new all-time high on Wednesday, which pushed its market cap to $2.16 trillion.
Though the crypto’s price consolidated lower after hitting a high of $109,400, its market cap passed Amazon (AMZN), which stands at $2.15 trillion.
Bitcoin is up 16.44% year-to-date while shares of the online retailer are down about 8% over the same period. It is currently trading at $108,954.
Gold is the largest asset, by far, standing at a $22 trillion market cap, followed by Microsoft (MSFT), NVIDIA (NVDA) and Apple (AAPL) which stand at $3.1 trillion to $3.4 trillion respectively.
As a result of the surge in bitcoin’s price since the win of U.S. President Donald Trump, BlackRock’s iShares Bitcoin Trust (IBIT) recently became the fifth-largest exchange-traded fund (ETF) by inflows this year as it took in roughly $9 billion from investors, according to data from Bloomberg senior ETF analyst Eric Balchunas.
Chainlink’s price action demonstrates remarkable resilience amid mixed global economic conditions.
The token has established a well-defined rising channel pattern, with technical indicators supporting continued bullish momentum.
After successfully breaking above the 200-day moving average, LINK has maintained its upward trajectory despite short-term resistance.
Exchange outflows remain consistently negative, with $11.27 million worth of LINK exiting exchanges this week following $55.2 million in outflows last week. This pattern of decreasing exchange balances typically signals investor accumulation rather than selling pressure.
Meanwhile, Chainlink’s technology continues gaining traction in the DeFi sector, with recent integrations including JPMorgan, Ondo Finance, and Solana mainnet.
Analysts project LINK could reach $20 in the near term, with longer-term forecasts suggesting potential growth to $50 by 2028 and $100 by 2030 as adoption of its Cross-Chain Interoperability Protocol (CCIP) expands across the blockchain ecosystem.
Technical Analysis Highlights
- LINK established strong support at $15.60 with high-volume buying emerging at the $15.27-$15.30 zone during the 18-19 hour timeframe on May 20th.
- A significant volume spike (3.08M) during the 11:00 hour on May 21st coincided with LINK testing the $16.24 resistance level.
- The overall trend remains bullish with higher lows forming a clear upward channel.
- LINK demonstrated significant bullish momentum in the last hour, surging from $15.67 to a peak of $15.91, representing a 1.5% gain.
- A notable volume spike occurred at 13:30, catalyzing a sharp upward movement that established a new support level around $15.75.
- The price action formed an ascending channel with higher lows, though some profit-taking emerged near the $15.90 resistance level.
- Final minutes showed consolidation around $15.85, with volume patterns suggesting accumulation rather than distribution.
External References
- «Chainlink Price Prediction: Can Increased Network Adoption Rejuvenate Bullish Momentum for LINK?«, CoinPedia, published May 20, 2025.
- «Chainlink price prediction 2025-2031: A strong buy sentiment for LINK?«, Cryptopolitan, published May 20, 2025.
- «Chainlink In Rally Mode: Rising Channel Formation Signals Continued Climb«, NewsBTC, published May 21, 2025.
- «Chainlink price targets $20 as exchange outflows surge«, crypto.news, published May 21, 2025.
Bitcoin BTC clinched a fresh record price of $109,400, surpassing the peak in January around Donald Trump’s inauguration.
According to the CoinDesk Bitcoin Index, the largest and oldest cryptocurrency hit $109,486 on Wednesday during the early U.S. session. BTC surged more than 46% from its April trough induced by mounting freas over global trade war and U.S. tariffs.
The new all-time high came as spot bitcoin exchange traded funds (ETF) gobbled up $3.6 billion in net inflows in May, a sign of rejuvenated investor interest. A slew of bitcoin-focused treasury companies, including Michael Saylor’s Strategy and newly-launched firm Twenty One Capital added to the buying spree, helping lift BTC to a new record.
Positive regulatory shifts in the U.S. have further supported the market, lending legitimacy of digital assets as an asset class for investors. The U.S. Senate this week advanced a bill to regulate stablecoins while several states and sovereign nations are moving forward with legislation to create bitcoin reserves.
Analysts suggested that the current rally is more sustainable than previous ones, citing favorable financial conditions, stablecoin flows and lack of speculative fervor observed in earlier peaks, showing signs of a stronger foundation.
Bitcoin Overtakes Amazon as the Fifth Largest Asset, Hitting $2.16T Market Cap
Chainlink Gains as Exchange Outflows Point to Strong Accumulation
Bitcoin Hits New Record High, Surging to $109.4K
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