Bitcoin‘s Bullish Momentum Continues
The cryptocurrency market continues to see positive momentum, with Bitcoin (BTC) breaking new records and reaching its highest-ever weekly close. As of midnight UTC on May 18th, Bitcoin closed at just below $106,500, marking a significant milestone for the cryptocurrency.
This achievement follows six consecutive weeks of weekly gains for Bitcoin, further highlighting its robust upward trend. This latest weekly close surpasses its previous high, which was reached in December at $104,400. Bitcoin is currently trading at around $104,730, less than 3% away from its all-time high of $109,358 reached in January 2022.
Record-Breaking Daily Close
The impressive weekly close comes on the heels of an equally remarkable daily performance. On May 18th, Bitcoin also posted its highest-ever close in a 24-hour period, exceeding $105,000. This record-breaking daily candle has sparked renewed bullish sentiment among analysts, who anticipate further price gains.
“Bitcoin just had its highest daily candle close… ever,” noted investor Scott Melker on X (formerly Twitter). Analyst Rekt Capital echoed this sentiment, stating, “Bitcoin will develop a brand new higher high” following its daily close above $105,000.
CAGR Trend and Institutional Interest
While Bitcoin‘s short-term price action remains positive, its long-term compound annual growth rate (CAGR) is showing signs of cooling down. Analyst Willy Woo has noted that the network’s CAGR is trending downward as it continues to absorb more capital.
“BTC is now traded as the newest macro asset in 150 years, it’ll continue to absorb capital until it reaches its equilibrium,” Woo explained. He predicts that Bitcoin‘s annual growth rate will eventually settle around 8% in 15 to 20 years, aligning with long-term monetary expansion and GDP growth.
Despite the expected CAGR moderation, Woo highlights Bitcoin‘s impressive long-term performance, stating, “Until then, enjoy the ride because almost no publicly investable product can match BTC performance long term, even as BTC‘s CAGR continues to erode.”
Renewed Bullish Sentiment
The recent surge in Bitcoin‘s price has been accompanied by heightened interest from institutional investors. The Coinbase premium, which measures US sentiment by comparing Coinbase’s BTC/USD pair with Binance’s BTC/USDT equivalent, has returned, indicating strong demand from US investors.
“The strength of this bid on a Sunday night feels strange,” noted Arete Capital partner “McKenna,” suggesting that potential market-moving news could be in the pipeline for the coming week. This speculation further contributes to the prevailing bullish sentiment surrounding Bitcoin.
Conclusion
Bitcoin‘s recent price surge and record-breaking closes reflect a strong upward momentum within the cryptocurrency market. While its long-term CAGR may moderate, Bitcoin‘s short-term performance remains impressive, attracting institutional capital and fueling renewed bullish sentiment. It remains to be seen whether Bitcoin will continue its upward climb or experience a correction in the coming weeks.
