In May 2025, Bitcoin's price stayed just below $104,000. The lower than expected US inflation figures played a key role in this trend.
Bitcoin Stability Following Inflation Data
Bitcoin's price rose slightly above $104,000 following the release of US Consumer Price Index (CPI) data for April, which was lower than expected. This aligns with historical trends where lower CPI figures boost asset rallies due to reduced inflation concerns.
Institutional Investments Support Cryptocurrency Market
Major institutional investors are increasingly engaging with Bitcoin through spot ETFs. According to Bloomberg, net inflows into spot Bitcoin ETFs have hit $40.33 billion, highlighting significant interest from institutional participants amidst resilient crypto market dynamics.
Growth Prospects and ETF's Impact on the Market
Bitcoin's price stability has positively influenced other cryptocurrencies, with Ethereum trading over $2,500, marking a 40% weekly gain. Analysts anticipate further market growth due to the global expansion of ETF frameworks and sustained institutional and sovereign investments. These trends are expected to enhance long-term growth prospects, supported by a rise in ETF inflows.
Given the current trends and rising institutional interest, the cryptocurrency market, including Bitcoin and Ethereum, can expect further growth, especially in light of expanding ETFs and regulatory support.
