AxelAdlerJr., an analyst at CryptoQuant, posted on social media that the demand for Bitcoin is gradually climbing to a level close to the peak of the previous bull market. Currently, on average, about 1.8 billion US dollars of new funds are continuously flowing into the market every day. This scale is comparable to the situation when the price of Bitcoin reached 64,000 US dollars in November 2021. During this market cycle, the largest inflow of funds occurred when the price of Bitcoin reached $73,000 (with a peak of $3.6 billion) and $92,000 (with a peak of $4.5 billion) respectively. Axeladler Jr said that this indicator clearly shows that even after the price of Bitcoin hit a record high, investors still maintain a strong willingness to deploy large-scale funds.
From the overall market situation, the price of Bitcoin has performed strongly recently. On May 22nd, the price of Bitcoin broke through the $110,000 per coin mark, with its total market value exceeding $2.1 trillion. Its global asset market value ranking rose to fifth, only behind gold, Microsoft, NVIDIA and Apple. Ding Zhaofei, the chief analyst of HashKey Group, believes that the current rally of Bitcoin is not driven by the frenzy of retail investors, but by the combined effect of multiple structural forces, indicating that Bitcoin will challenge a new historical high and push the coin price to rise to the platform period of $150,000 to $180,000 this year.
The massive influx of institutional funds has become a strong support for the strong price of Bitcoin. As a firm long position in Bitcoin, as of May 18, 2025, Strategy held approximately 576,23 Bitcoins, with a total purchase price of about 40.18 billion US dollars, making a floating profit of over 23 billion US dollars. A large number of Bitcoin mining enterprises and listed companies also invest in cryptocurrencies through convertible bonds, preferred stocks and other means.
Meanwhile, the mature development of the cryptocurrency derivatives market has enhanced the confidence and participation of traditional institutional investors, driving up the price of Bitcoin. Data shows that the Bitcoin Spot ETF has been continuously attracting capital inflows. As of now, the total net asset value of the Bitcoin Spot ETF stands at 129.015 billion US dollars, with the ETF’s net asset ratio (the proportion of market value to the total market value of Bitcoin) reaching 6%. The historical cumulative net inflow has reached 43.38 billion US dollars.
As the price of Bitcoin keeps breaking through, the inflow of funds is also changing. Bitcoin analyst Willy Woo previously said that the daily inflow of funds into Bitcoin reached 2 billion US dollars, the highest since 2021. The average daily inflow of 1.8 billion US dollars mentioned by AxelAdlerJr now also reflects the market’s activity level.
This continuous inflow of funds, on the one hand, stems from investors’ optimism about the long-term value of Bitcoin. As the global recognition and acceptance of Bitcoin continue to increase, more and more investors regard it as an important part of their asset allocation. On the other hand, the uncertainty of the global macroeconomic environment has also prompted some investors to seek assets like Bitcoin, which have safe-haven attributes, in order to preserve and increase the value of their assets.
In addition, some indicators of the Bitcoin network itself also reflect the positive trend of the market. On-chain analyst Willy Woo shared the chart showing that the net inflow of funds into the Bitcoin network has continued to increase in the past 30 days, with a highly stable trend. It is speculated that institutions might be conducting long-term regular investment operations at the level of billions of dollars, supporting the BTC price to break through 110,000 US dollars.
Meanwhile, the open interest in the Bitcoin futures market is also on the rise. Data from CoinGlass shows that as of now, the nominal value of open interest in the Bitcoin futures market has reached its highest level in 26 months. This year, the open interest in perpetual contracts and futures contracts has increased by 22%. Approaching the record of $24 billion set when the Bitcoin price peaked at $65,000 in 2021. This indicates that market participants have a relatively strong expectation of an increase in the price of Bitcoin and are willing to obtain more profits through derivative tools such as futures contracts.
With the continuous growth of the demand for Bitcoin and the steady inflow of funds, the subsequent price trend of Bitcoin has drawn much attention. Market analysts believe that in the current market environment, Bitcoin is expected to continue its upward trend, but at the same time, it is also necessary to pay attention to possible risk factors, such as changes in regulatory policies and intensified market volatility. For investors, when participating in Bitcoin investment, they should fully understand the market situation and reasonably formulate investment strategies to deal with market uncertainties.
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