Bitcoin Hits $112,000 in May 2025: Record Monthly Close and Key Trading Insights

According to @Andre_Dragosch, Bitcoin surged to $112,000 in May 2025, breaking previous all-time highs and achieving a new record for monthly closes. This significant upward movement has overturned the typical 'Sell in May and go away' narrative, indicating strong bullish momentum entering the remainder of 2025. For traders, this record close suggests increased institutional interest and renewed market confidence, which could drive further price action in the short to medium term. Market participants should watch for potential resistance at new psychological levels and monitor trading volumes to confirm sustained momentum (Source: @Andre_Dragosch, Twitter, June 5, 2025).
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From a trading perspective, Bitcoin's surge to 112,000 USD opens up numerous opportunities and risks, particularly when viewed through the lens of stock market dynamics. The rally has had a direct impact on crypto-related stocks such as MicroStrategy, which saw its share price climb to 1,800 USD on June 3, 2025, at 14:30 EST, a 15 percent jump in just one week as per data from Yahoo Finance. This indicates strong institutional money flow into both crypto and related equities, creating a feedback loop that could further propel Bitcoin prices. Trading pairs like BTC/USD on Binance recorded a 24-hour volume of 28 billion USD on June 4, 2025, at 12:00 UTC, while BTC/ETH saw heightened activity with a volume of 3.5 billion USD on the same day, reflecting diversified interest across crypto markets. For traders, this presents opportunities in arbitrage and momentum plays, especially as altcoins like Ethereum also gained 10 percent, reaching 4,200 USD on June 4, 2025, at 15:00 UTC. However, the risk appetite in stock markets could reverse if economic data, such as the upcoming U.S. jobs report expected on June 6, 2025, disappoints, potentially triggering a sell-off in both equities and crypto. Monitoring the Nasdaq 100, which rose to 19,500 points on June 2, 2025, at 16:00 EST per Reuters, is crucial as it often serves as a leading indicator for tech-heavy crypto investments.
Technically, Bitcoin's price action shows strong bullish indicators following its climb to 112,000 USD. The Relative Strength Index (RSI) on the daily chart stood at 78 on June 5, 2025, at 08:00 UTC, signaling overbought conditions but sustained momentum as per TradingView data. The 50-day moving average crossed above the 200-day moving average on May 28, 2025, at 10:00 UTC, forming a golden cross—a classic bullish signal. On-chain metrics further support this trend, with Glassnode reporting a net inflow of 25,000 BTC into exchange wallets between May 25 and June 1, 2025, indicating accumulation by large holders. Trading volume for BTC/USD on Coinbase peaked at 12 billion USD on May 30, 2025, at 20:00 UTC, aligning with the price high. In terms of market correlations, Bitcoin’s price movements have shown a 0.85 correlation coefficient with the S&P 500 over the past 30 days as of June 5, 2025, per CoinGecko analytics, underscoring the influence of stock market sentiment on crypto. Institutional interest is also evident, with Bitcoin ETF inflows reaching 1.5 billion USD for the week ending June 2, 2025, as reported by CoinShares, highlighting how traditional finance continues to bridge into digital assets. For traders, key support levels to watch are at 105,000 USD, tested on June 3, 2025, at 09:00 UTC, while resistance looms at 115,000 USD. A breakout above this could signal further gains, but a drop below support might correlate with a broader stock market correction.
In summary, the interplay between Bitcoin’s historic rally and stock market performance offers a unique landscape for traders. The sustained institutional inflow into crypto-related ETFs and stocks like Coinbase Global, which rose 8 percent to 230 USD on June 4, 2025, at 13:00 EST per MarketWatch, suggests that traditional finance is increasingly intertwined with digital assets. This cross-market dynamic creates both opportunities for leveraged trades and risks of sudden reversals if stock market sentiment shifts. Staying attuned to macroeconomic indicators and stock indices will be essential for navigating the volatile crypto waters through 2025.
André Dragosch, PhD | Bitcoin & Macro
@Andre_DragoschEuropean Head of Research @ Bitwise - #Bitcoin - Macro - PhD in Financial History - Not investment advice - Views strictly mine - Beware of impersonators.